Online vs Offline Home Loans: A detailed comparison

Technology has brought ease and convenience to the ordinary person’s life. You no longer have to wait in long queues to pay your utility bills, step out to buy daily groceries, or visit a store to recharge your phone. With everything around changing so rapidly, the home loan industry is no exception.

However, when a transaction involves a substantial sum of money and a long-term commitment, many people would rather visit the lender’s office, carry all the required documents with them, and physically sign the papers. This process can be pretty time-consuming. Although home loans can still be applied for and processed offline, the online process has gained momentum mainly because of its merits: fast processing, hassle-free documentation, and easy loan tracking. Following a traditional Offline Home Loan process or choosing to opt for an Online home loan is purely at your discretion, but you must understand the merits and demerits of both methods before applying for a home loan. 

Offline Home Loan

This is the usual way of applying for a home loan. You’ll have to visit the branch, fill out all the necessary forms to apply for the loan, and submit the required KYC documents. This method makes sense for individuals who are not internet-savvy or believe in obtaining personalized, one-to-one services from their bank. It is significantly slower than availing a loan online largely because the submitted documents need to be physically verified and scrutinized at various processing desks. These include CIBIL check, RCU (document scrutiny), application form check, home loan eligibility, and the credit manager’s discussions with the borrower to ensure credibility.

The documentation involved in the loan application process can be extensive and overwhelming, with the possibility that your crucial documents may get misplaced or lost in transit.

Online Home Loan

Here, the customer can apply for a loan anywhere, whether at home or work, and get immediate access to various kinds of loan products. In their busy lives, borrowers can save a lot of time and choose the loan product they prefer rather than sitting through the sales pitches of multiple bank officials.

Here’s a detailed comparison of the two methods of loan application:

With banks like IDFC FIRST Bank, you can avail of competitive home loan interest rates on housing finance and a wide selection of properties along with low EMI options, quick processing facilities, and efficient tracking of your house loan status. When it comes to applying for a home loan, there’s no one-size-fits-all solution for everyone.

While online personal loans offer several benefits and are becoming more widespread, many individuals still feel comfortable only with offline products. In the future, online loans are likely to have a more significant presence due to the speedy expansion of digital services all over the country.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.