Many financial technology companies offer personal loans that can be applied for online. Depending on your priorities, online or in-person loans may be preferable.

If you want to interact with a real person, go to a physical financial institution. If you need quick funding and modern conveniences like mobile loan management, an online lender may be a good option.

If you can find a loan with a lower interest rate, that is usually the best option. Shop around and compare offers from various lenders to find the best loan for you.

Online and bank loan comparison

Online loan applications are available


  • Pre-qualification is typically provided without affecting your credit score.
  • Loans are approved and disbursed within a day or two.


  • Because the entire loan application and approval process is done online, borrowers must feel comfortable providing personal financial information and filling out forms with little or no human interaction. online resources

A financial loan


  • An existing relationship can result in higher approval rates, lower rates, or more favorable terms.
  • In-person assistance with loan applications and repayments is provided.


  • There is usually no pre-qualification process to see loan rates and terms without jeopardizing your credit.
  • It is possible that there will be a delay between loan approval and disbursement.

Here are four questions to ask yourself to help you decide between a bank loan and an online loan.

Is it safe to borrow money from an online lender?

Borrowing money from an online lender is risk-free if the lender is well-known and trustworthy.

A reputable lender checks your credit, discloses the costs and terms of the loan, and ensures that the loan will not have a negative impact on your finances before approving your loan application.

Individualized loans are important to you?

One of the most noticeable differences between banks and online lenders is the ability to have a face-to-face conversation.

According to Eric Simonson, a certified financial planner and owner of Abundo Wealth in Minneapolis, a bank may be for you if you value personal interaction and the security of knowing who is handling your loan.

“Some people like to just know that there is a person who makes sure the loan goes through smoothly,” he says, when it comes to getting a loan.

According to Simonson, you may be able to negotiate a lower rate or qualify with a lower credit score if you speak with someone at a bank with whom you already have a relationship.

According to Vernon Tremblay, a financial expert with an online lender, lenders with an online presence can also expedite your research process if they post their rates.

If you have good credit, he says you shouldn’t be concerned about getting approved. You’ve come to the right place if you’re concerned about wasting your time by applying for a loan and receiving an offer you don’t like.

Is it a good idea for you to borrow money over the internet?

An online loan application requires you to electronically share personal information with a lender, such as your Social Security number, educational history, and bank account information, which may require access.

Scammers should be especially cautious in these circumstances.

If you are unsure whether an online lender is legitimate, you should go to a physical bank.

Inexperienced borrowers may struggle to manage their loans online, resulting in only one point of contact with the lender: a customer service representative. If this describes you, an online-only experience may not be for you.

Where can I get the best loan?

The best loan is one that meets your needs in terms of costs, terms, and features, whether obtained from a bank branch or an online lender. By comparing multiple offers from banks and online lenders, you can ensure you’re getting the best deal for your situation.

According to Simonson, community banks and credit unions may be more willing to lend to you if you have less-than-ideal credit than a large bank or online lender.

Some online lenders like Acfa-Cashflow allow you to see your potential rate and pre-qualify for a loan, which is useful when comparing rates. Check Acfa-Cashflow pre-approval process now!

Cathy Pamela Turner

Personal Finance Writer at ACFA Cashflow

Cathy Pamela Turner has extensive expertise in banking, finance as well as accounting. A large portion of her experience was spent within commercial banks, where she worked in the roles of an underwriter credit Risk Policy Manager director of credit risk, chief credit executive, and many more. Throughout her banking career Cathy not only reviewed different kinds of commercial and personal loans, but also created and monitored policies about the origination of these loans and how they were controlled.


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