Online vs. Offline Loan Applications: Which is Faster and Easier?

Long gone are the days, when you had to rely on your financial advisor for tips and advice on getting a loan. Also, earlier, you may have had to do multiple rounds of visits to the lender’s office to apply for the loan, submit the documents, and sign the papers before eventually you get the disbursement. Thankfully, such lengthy processes are a thing of the past. Today, most lenders have a simplified loan application process. 

With the penetration of digital technology in all aspects of your lives, the world is now at your fingertips, including home loans. Today, you can apply for a loan online from the comfort of your home or office and get the amount credited to your account without having to visit the lender even once. 

Let us assume you are a first-time loan applicant and want to apply for a home loan of Rs. 50 Lakh. Now, you have the choice between two modes – online and offline. You can make the decision based on your preference. But, before you do that, it would help to understand the benefits and drawbacks of both approaches so that you can make an informed choice. 

 

Offline vs online loan application – which is better?

• Get the information needed

When applying for a home loan, it is essential to conduct thorough research on different lenders and explore all available options. You should consider the interest rate, associated fees, loan processing time, and other relevant terms and conditions. For an offline loan application, to obtain all the necessary information, you may need to visit each lender’s office in person, speak with a loan representative, inquire about the loan features, or refer to their brochure before making a decision. This process may take a few days or even a couple of months. 

In contrast, if you opt for an online application, you can easily find all the necessary information about different lenders with just a few clicks. You can visit the official website of the lenders, compare the offerings, check your eligibility and choose the lender of your choice within a few hours. 

 

• Application process

In offline mode, when applying for a home loan, you will need to visit the lender’s office in person more than once. First, to inquire about the loan. Once you have all the necessary details, you may have to go again to submit your application and the necessary documents. And, sometimes, you may be called in the third time to sign the loan agreement before disbursement. 

On the other hand, when you apply for a loan online, you need not visit the lender’s office even once and complete the whole process within a few minutes from the comfort of your home. Nowadays, most reputable lenders, such as India Shelter, have a straightforward online application and approval process. Additionally, you can easily connect with the lender via phone or chat to ask questions about the application, and you can also pay the application fee online. 

 

• Documentation

When applying for a home loan, you must submit specific documents to the lender. It is an integral part of the loan process. 

In offline applications, you may have to physically carry all the critical documents to the lender’s office for submission. Not only is this method inconvenient, but it can also be quite risky as you may lose or misplace certain paper in transit. This, in turn, may jeopardize the entire application process and cause unnecessary delays. 

In contrast, online applications are much easier and more convenient. You can easily scan the documents and upload the soft copies online through the lender’s loan portal, thereby complying with the documentation process without risking the loss of any important papers. Additionally, when you submit documents online, you can obtain proof of all the submitted papers for future reference. 

 

• Processing time

Due to manual verification of the documents submitted, offline loan processing tends to be time-consuming. Additionally, the sheer volume of applications can lead to extended waiting periods. 

In contrast, online loan applications are processed much faster. This is because all the paperwork here is stored digitally, with minimal manual intervention. This translates to faster approval and disbursement of the loan, significantly reducing your time. 

 

• Associated charges

Offline home loans may incur additional charges, such as broker commissions and document processing fees. These extra charges may increase the overall borrowing cost and affect loan affordability. 

In online home loans, you get full transparency about the costs involved. You can find the exact charges lenders may levy on the website, allowing you to plan accordingly and avoid any unexpected additional charges. 

 

Conclusion

Thus, it is quite evident that online home applications have several benefits over offline applications; the application process is fast and easy, the processing time is also quick, and more importantly, there is no risk of additional expenses. 

If you are seeking the best home loan offer in India, consider India Shelter as your trusted partner in your home-buying journey. They offer loans between Rs. 5 Lakh to Rs. 50 Lakh at the affordable interest rate and the quick loan process ensure that you have a hassle-free borrowing experience.