During such unprecedented times, it has become a necessary mandate to digitize all conventional methods for the benefit of the organisations and their end-users. With technological advances, one need not necessarily make physical visits to pay their utility bills, purchase grocery, buy medicines etc. With this digitalization happening in every work segment; applying for loans too has become digitalised.

Caught in a chaotic and frenzied spiral of the daily hustle and bustle, a majority of the population find themselves wrapped up in this toing and froing and do not seem to have time to go through the lengthy procedures in order to obtain financial help. Hence, most people prefer to choose a method that is more convenient to them and that can make their life easy.

Our society is a composite of all age groups. Those born into the era of digitalization get things done by just a click on their smartphones, laptops, computers etc. However, there also exists a large segment of the population who have been habituated to make physical visits to the banks or any corporation to receive financial help. For them the “brick and mortar” concept is more tangible than to apply loans online.

Every organization has to take heed of both these segments and derive ways to cater to them in the best way possible. Bearing in mind the diversity and convenience for all age groups, the question is “Does one really have to choose between traditional and online methods of applying for loans?”.

Currently choosing between the two is not a matter of obligation, but of preference. Bearing this in mind, there are advantages that both online loan applications and in-person loan applications have. Some of them are cited below.

Online Loan Application


  1. Effortless Documentation Process
    Nobody likes too much paperwork. It is very easy for one to misplace important documents in the heaps of papers that are usually required when applying for a loan. It tends to become the biggest hassle when applying for a loan. When applying online, these burdened processes are out of the way making the process easy with reduced risk of paperwork getting lost, damaged etc.

  2. Time Saving
    With all the lengthy processes being eliminated, like standing in long queues, filling out multiple forms, discovering that you’ve left behind your ID or any other important document, and the like, online loan applications are a big time saver. 
    The entire process usually takes less time when compared to the physical processes. Managing all the required loan documents can be quite cumbersome. In order to make sure that the process is trouble-free, the loan application platform tracks and prompts borrowers to submit required documents and fast tracks the loan processing time. 

  3. Flexible Timing
    Everyone wants that all additional tasks at one’s hand should be completed without their routine schedule being disrupted. When applying for a loan online, one can be sure that their routine and work will not be hampered in any manner. One can take advantage of this and apply for a loan even in the middle of the night when an emergency situation arises.

  4. In-person Loan Application:

    1. Personal Touch
      Frequent visits to the bank for loan application tends to provide a professional and personal touch to the entire process. The lenders get familiar with the borrower which can make the process quicker and easier the next time the same borrower requires a loan.

    2. Instant Verbal Communication
      When one chooses to make physical visits to the bank to apply for a loan, there is more clarity since the borrower can explain their situation in a better and elaborate manner and then decide which loan to apply for and the amount to borrow. Similarly, the lender can provide more clarity on the terms and conditions of the loan and the various tenures and ROIs that the borrower is eligible for.
    3. Not Mandatory to be Tech Savvy
      Not everyone is comfortable going online and applying for a loan. If one is not familiar with how the internet works, it can put a kibosh on the entire loan process. For such individuals, making a visit to the bank can prove more beneficial. All the information required can be easily clarified on the spot and make the process easier. 

    4. Protection from Scammers
      As more and more people are moving into the digital age, the amount of online frauds have also increased. Most scammers swindle money from people via websites they have created which get passed for genuine ones. With the presence of multiple lenders online, people might find it difficult to distinguish between the genuine and fraudulent ones. Those applying for a loan, especially for the first time may fall prey to such scammers. However, when one goes to the bank, one is assured that their personal information is locked up safely within the four walls of the bank. 

    5. It’s not necessary to find one method better than the other. At SMHFC, we ensure that our customers get the best of both worlds. For any person, regardless of the section of the society to which they belong, their biggest dream is to purchase their dream house. A home is typically the largest asset that people have. It is something that people give a lot of thought to before investing such a huge amount which is demanded when purchasing a house. Hence, reckless decisions cannot be made. We, at SMHFC, become a part of this journey with our customers not with the aim of earning monetary benefits but with the aim of seeing the happiness and satisfaction on our customers’ face when the loan is sanctioned.

      We recognize that the segment we cater to may find it very difficult to take time out to visit our offices to apply for a loan or resolve queries for most of our customers are daily wage earners and may lose out on their wages if they are expected to visit offices. Therefore, with the deep understanding of our customer segment, our business model is structured in a way, where we visit our customers as per the time that is convenient for them, help them and guide them in every way possible, make multiple visits if the situation demands and finally help them get their dream house. Our customers have the option of applying for loans online or schedule a personal visit where we go and understand their needs and intent. The idea is not to overwhelm our customers with Terms and Conditions rambled on for pages. Instead we explain the Terms in as precise a manner as possible and resolve their queries in an instant. With such facilities available, our customers choose the method most convenient for them and we support them at every step of their decision.

      One doesn’t really need to find one better than the other. We recognize that home loans or our other line of financial product aren’t something that one takes repeatedly like everyday bread and butter. For any person, a home is one of the biggest investments. 

      Image source-SMHFC, Freepik, Envato Elements

Shreya Sutaria

Executive - Human Resource