Consumers in this decade are more inclusive towards the financial system, and for that, they are aware of different financial products that are available in the market. Here, in this case, one such popular product is a personal loan.
In the current situation, there are a variety of online lenders and agents who offer personal loans to tech-savvy consumers and help them to get loans faster. On the other hand, there are loan agents who can help customers by showing them a variety of options and doing the documentation on their behalf to the lender, hence easing the application process.
In this blog, we will discuss the variety of advantages and disadvantages both the loan agents and the online lenders have and will guide the customers to make an informed choice.
Understanding Personal Loan Agents: A Human Touch
The basic need that the personal agents use to solve is through providing the customer guidance about a particular loan product and helping them understand the product as per the customer’s comfort.
For example, an agent who came through the ICICI Bank DSA registration or from any other bank can offer an in-depth product portfolio to the customer so that they can check the best one and help them make a decision.
The loan agents offer face-to-face evaluation and dedicated services, which are helpful and help the customer understand the complex transactional items, which can sometimes become quite complicated.
The main advantage an individual can get is the assistance of agents who can guide the customers in the due diligence process, help them get a clear understanding of the financial matter, and also minimize the risk.
The Convenience of Online Lenders: Anytime, Anywhere Access
The online lending platform has democratized the way through which people used to take loans. Here, a person can maintain and check their loan profile online and at any time, and they can check for how much of an individual is eligible for the loan.
From the psychological perspective, a person who is taking the loan feels a kind of shame where they feel that they need to hide this financial matter from their peers; hence comes the online lending service, which provides individuals the need for anonymity and also offers them the service from the comfort of their home.
One of the key things that are in favor of the customers is the entire online approval and disbursement procedure, which helps a customer have a faster approval rate and also get money in the bank in much less time.
Personalization vs. Automation: Tailoring Solutions to Your Needs
Personal loan agents are known for tailoring solutions based on the needs of the customers. Before the online era, loan agents used to understand fully the financial condition of an individual, and for that, they needed to assess the income statement by themselves.
Based on that understanding, a personal agent will come with repayment terms and conditions, and upon agreement, the lender can sanction that amount, and the loan will be disbursed.
Now, in the age of online loans, customers need to meet certain criteria which the lenders set. There are different types of criteria that a lender can set by analyzing their risk profile. Here, a person who matches the terms set by the lender gets the loan, and the application and disbursement process gets faster.
Transparency in Rates and Fees: Comparing the Fine Print
The fee structure is transparent and is standard when it comes to online loan lenders. They have a fixed rate of interest for a certain amount, and for that matter, they are quite easy for the customers to know firsthand about the rate of interest.
In the case of loan agents, this isn’t easy, as they curate the loan interest rate after analyzing the financial profile and then deciding on the best rest that can help meet your requirements.
In the previous case, one can learn about the cost of the loan beforehand, whereas, on the other hand, they can learn about it in a more personalized manner.
The Final Call: Deciding What to Do
Here, a person can first analyze the online rates and then check with the personal loan agents to see whether they can get better terms so that the customer can build a good credit history with the bank in the future.
