Technology has bought tones of changes in everyone’s day-to-day life. One such significant change is that loans for self-employed can be applied online. Yes, it is now possible to apply for a personal loan for a businessman online from the comfort of the house. The loan application can be filled with just a few clicks.
Gone are the days when the business owner was required to visit the lender’s office to apply for a loan. With the online business loans, he can search online, compare loans, and apply for it from his home only. The availability of online loans for self-employed has also made the application process convenient and faster.
Online loans are widely available. But some business owners still prefer availing business loans offline. So, before you take the final decision to avail the credit service online or offline, let’s help you to comprehend the critical differences between offline and online loans for business.
Convenience
Convenience is the most significant advantage of online loans. The borrower is not required to go physically to the NBFC or bank branch and stand in the long queues. He can fill the form online from his office or anywhere. It makes the entire loan availing process easy and convenient for him. Also, the online application forms can be filled the whole day, 24X7. All these facilities are not available with offline loans.
Offers
Many online loan lenders offer special loan offers. These offers include unsecured business loan, minimal documentation, low interest rate, and no prepayment charges. It can help the business owner save some money. However, these offers are not offered when a borrower applies for an offline loan. So, applying for an online loan is in the borrower’s benefit only.
Documentation
When the borrower applies for an online loan, he can also upload the documents for the business loan online. So, the loan application is paperless. The borrower can upload the scanned copies of the documents on the website of the lender. And done! The lender will verify the documents online and approve or disapprove the documents and application accordingly. Whereas, in the case of the offline loan, the borrower first gets the photocopies of the documents. Then he submits the documents. And wait, the process is not done yet! He next has to wait for some days for confirmation.
Processing Time
There is a vast and notable gap between the processing time of the online and offline loan application form. In case of an online loan application, the application gets approved in no time. The application is instantly approved with the help of the machine-made algorithms. So, the loan amount is disbursed in just three days.
On the contrary, the offline loan application takes a long time in processing and approval. First, the applications are submitted and then, processed and verified. The lender’s representative then validates the documents as well, which consumes a lot of time. So, an offline loan application takes a lot of time from processing to disbursal.
In the end, one can undoubtedly conclude that online loans for self-employed are convenient, comfortable, and quicker. Well, choosing between the two is one’s personal choice, but it only makes more sense to go with the hassle-free option when it is available.