The conventional meaning of closing the deal of a business loan is a face-to-face meeting, but that may be a thing of the past due to the exuberance of technological advancements and how this has changed how online business loans can be successfully approved in a convenient and fraud freeway at the inconvenience of browsing through a laptop.

An eternal battle rages between two equally vociferous groups regarding the pros and cons of taking them offline and online business loans. Let’s find out more:

Major differences

  1. The time taken for processing of loan application

Nowadays people in the modern global job and government are very busy. And when at any time if you want a bank loan you have to visit the address of a financial institution and spend at least 2 to 3 hours, signing voluminous application forms and at the same time facing intrusive interviews from multiple bank officials.

  • After that ordeal is over, the bank processes stipulate that it will take up to a maximum of 45 days to assess and know the outcome of the application form which also includes the documentation process.
  • Online business loans are on the other side of the spectrum on this particular issue. Business loans online have a unique quality of faster processing.
  • It not only helps the borrowers in case of successful approval that they will be in the receipt of the funds within 3 to 4 working days. This advantage no doubt has multivariate savings and increases the productivity of the customer.

In addition, the funds that are required for emergency needs can be immediately secured. The online loan application process is faster than coming to the branch and laying out your signatures on the loan application.  The thing is that the rules apply the same either be it an offline application or an online application.

No matter whether your small business is performing at the apex or not,  it is imperative to arrange for adequate funding. Access to capital at the right time is a key differentiator between a lost sale and a good deal. Financial planning is a key challenge for many of small businesses and vital to avoid bankruptcy and to weather the unstable winds.

  1. Assessment of eligibility conditions

The central issue that occupies a prospective borrower is whether he or she should go to an offline setting or an online setting to find the amount of loan that he is eligible for.

There is no let-up in the eligibility criteria and remains the same for both offline and online prospective loan seekers. Having said that, the internal process of the bank also known as the credit evaluation process usually longer when compared to offline loans compared to online applications.

The reason behind this is that time is consumed when the prospective borrower has to physically visit the branch and engage in face-to-face discussions with a representative that may not be immediately present. Negotiations as to the final amount that the customer is interested in and the final amount that banks are interested in may not be the same during the initial stages of negotiation.

  1. Repayment terms

The offline route for taking a loan certainly has some advantage if you are going for the first time. The loan terms can be negotiated in a mutually conducive play with a finance company of your choice with face-to-face interaction. That personal element can also be taken as the growth of trust between the prospective borrower and the bank loan provider. The funding requirements can also be researched in detail. The human touch can go a long way in giving the right amount of loan to the right person.

The scope of negotiation is lacking in online modes of loan applications. Recent trends indicated that the companies are offering customised finance solutions with highly competitive rates due to the increase in competition.

Loan EMI calculator that is operated website of the bank companies can help online borrowers to understand and assess their capital requirements. This helps in a mighty way to understand the different competitors and which of them offers the best attractive deal compared to other lenders in the market.

  1. Personalisation

It doesn’t matter whether it is online and offline, lenders are both equally concerned regarding any unfortunate changes in your loan repayment capacity. On the bank’s places that every financial indicator is in the green then they are jumping to offer diverse loan products and help the borrowers to make use of the extended credit facilities.

  1. Online discounts and freebies

Many banks and financial institutions in tune with their master marketing campaigns offer special discounts on online loan products. They can be of diverse types which include lesser interest rates, Zero EMI, and provisioning of a few discount coupons that can get you discounts. When applying for a offline loan, the interaction with the bureaucrats and other officers who may not be as receptive. So if your heart is set on getting a good discount deal then you can opt for an online personal loan.

Which of them is a better choice?

Many skeptics have still not yet made peace with the efficiency of online loan processing options. But the verdict is out that majority of people with banking exposure feel that to get an online business loan sanctioned in the comfort of the study tables using online laptop is more comfortable than visiting a branch. Not only that the following are the best reasons why online business loans are a step ahead of offline business loans.

  • Cutting down the unnecessary bureaucratic obstacles with quick turnaround time
  • Enticing online business loan interest rate
  • Eligibility conditions and relaxation under online mode
  • Personalized offerings as mark as part of digital marketing campaign


Despite all the above analysis it finally boils down to you, regarding how you choose to avail of loan products. Both online or offline mechanisms are procedural outcomes that serve your immediate business requirements. In this way, you can avail yourself of an online business loan that suits your financial requirements.