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Online Loans vs. In-Person Loans

If you’re in need of a loan, whether it’s for an unexpected car repair or for something more pressing like medical bills, then the first thing to do is determine how much money you’ll need and what your requirements will be.

You can take out loans online or vs. apply them in person, but both of these options come with their own pros and cons.

The one that works best for you should depend on your current situation and the amount of money you need. You might also want to consider which process would give you access to instant cash.

Which is Better

Each of these two options has its own advantages and disadvantages. Loans obtained through traditional means may take some time to get approved.

Online loans, on the other hand, feature fast approval and fewer loan requirements. This article will help you decide better between Online Loans vs. In-Person Loans.

In-person or traditional loans

These options are available at banks and credit unions around the country. You fill out an application at the financial institution and wait until a lender approves your request.

Loan amounts may vary as much as $100 (for short-term loans) and as high as several million dollars (for large business loans).

The duration takes to receive the money depends on several factors. Repayment plans vary by type of loan.

However, traditional loans’ benefits cannot compensate for their inconvenience; you’ll need to make an effort not only to find the right lender but also to keep up with your repayments after receiving the funds.

In addition, banks may require a minimum amount of earnings or a good credit score before they approve your request. You may also need to give an asset as collateral.


  • Interest rates are usually lower
  • Most loans don’t have restrictions on usage
  • All the fees are disclosed upfront
  • Flexible repayment plans


  • You have to spend time looking for a lender and filling out applications\ loan approval may take some time
  • You need to have a good credit score.
  • Most types have strict requirements regarding salary amounts and credit history
  • Putting off payments means interest will accumulate faster. The lender  may also repossess your asset
  • You are likely to provide several documents (proof of earnings, proof of identity, etc.)

Online loans

Online Loans offer a simplistic alternative to traditional loans. These types of loans are typically obtained through online lenders and often do not require an extensive background check or credit checks like traditional lenders do.

Instead, applicants can obtain approval very quickly and without any hassle. If you have been denied by other lenders that required those extra steps before approving your request,  then it may be best for you to obtain an online loan because there’s a higher probability that you’ll be approved for this type of financing.

However, just as with traditional loans, you’ll still have to fill out applications and wait for a lender to approve your request.

In addition, they also come with an array of repayment options, including lump-sum payments, weekly or monthly installments, and interest-only payments if you can’t make a payment in full.

The duration it takes to receive the money depends on the one lending institution that approves your request; however, you can expect it to take anywhere from minutes (for cash advances) to several weeks (for home equity lines of credit).


  • Many lenders to choose from
  • No collateral required
  • People with bad credit can also apply and qualify
  • The loans feature instant approval
  • It can be a good option for emergencies


  • Most online loans are paid in a lump sum
  • The loans have high-interest rates
  • The loans feature short repayment terms
  • You may get into a debt trap if you don’t pay on time
  • Some online lenders don’t reveal all their fees upfront
  • You are likely to get scammed if you don’t do research


good fit
applying for a loan
shopping for a loan
personal interaction
business day
personal finance
credit cards
brick and mortar bank
online loan application
physical bank
customer service representative
bank branch
unsecured loans
the online lender is legitimate
online or in-person
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