Online v/s Offline business loans what the benefits and myths

Online v/s Offline business loans what the benefits and myths

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The advent of the internet has revolutionized the way of how most things work around us now. So many processes have now been digitalized to ease and fasten them. Gone are the days when we had to call up restaurants to have food delivered to our homes or the time we had to waste hours standing in a queue just to withdraw some cash from our bank accounts. No industry has been left untouched by the impact and influence of the digital transformation.

Just as in the case with all such industries, the finance industry has also taken deep interest to the world of digitization.  It is now possible for a person to easily apply for a loan at the comfort of their home as long as they have an internet connection.

Back in the ages, when someone was in need of a loan, the traditional measures would suggest that the potential borrower should either physically contact a bank or other funding authorities. Today, it’s completely different; one can look for business funding options conveniently online.

So what are the benefits of applying for an unsecured business loan online?

Many lenders to choose from: The internet now hosts a variety of Fintech companies that offer several types of loans at different interest rates; all you need to do is search for a financer that can easily meet your loan requirement. You don’t have to waste time and energy physically approaching different lenders.

Quick and simple application process: You no longer need to carry around the weight of documents when you are on the way to visit a financer. To apply for an unsecured business loan online, all you need to do is. –

  • Fill the loan application form
  • Upload the required documents
  • Attach photographs
  • Once you meet the eligibility parameter, you will receive the loan in a matter of a few days or even hours.

The world of online business funding is up to the brim with both benefits and misconceptions

Here are some common myths associated with online business loans and facts to debunk them. –

  • Online business loans are not safe: All authenticated and reputed online loan lenders keep your financial and personal data secure always.
  • Online business loans charge higher interest rates: The interest rate will solely depend on the loan amount and the kind of loan you are applying for. The interest rate will be at par or maybe even lower than their offline counterparts.
  • Online loans always require collateral: If you are applying for an unsecured business loan, you are not required to deposit any collateral. Other types of documents are however important.

An online business loan is safe and instant. While you may have to wait longer to get a loan approval if the processes are offline, when it comes to applying for one online, it’s a fast business loan which is disbursed within a week’s time.

In 2017, 59% of business owners applied for loans in order to invest and improve the operations of their respective organizations. There are around 42.5 million SMEs in India where 16 % of these companies have trusted various lending organizations to fulfill their business goals.

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