Online Loan Vs Digital Loan: You need money. It can take weeks to get a personal loan from bank branches. In such a situation, your work can also be spoiled. Then what to do? Immediately you see the advertisement of a digital finance company. There the loan application is approved quickly. You just download the app, fill some KYC formalities. One or two calls come. Some information is taken from you. Then the loan is finalized in a few hours and shortly after this the amount is transferred to your account. This is the miracle of online personal loan companies.

The miracle of online loan may prove to be a burden

You got a personal loan online in just a few hours, but this miracle may prove to be costly for you. Because, in the hurry of taking a personal loan, a very high rate of interest will be deducted from your account by the bank branches. You will have to pay for this too. If there is a little negligence in this process, then the online company that gives the loan in a hurry after speaking sweet words will behave so rudely that you will shiver. It is possible that you get caught in the debt trap and the recovery agent comes to your house to recover the money from you and starts misbehaving. It is also possible that you get caught in the trap of long legal action.

What is the problem with a bank's personal loan

Now it is natural to raise the question that when banks give personal loans at low interest rates, then why do people fall prey to online companies. The biggest reason for this is that banks check credit history or CIBIL score before giving a loan. If these are bad, they refuse to give a loan. In such a situation, people have no choice. Then banks also ask for many types of documents. Even if everything is fine, it takes weeks to give a personal loan. That is why people take the easy route of online personal loan. If banks make their process a little easier and faster, then traditional personal loan is a better option than online personal loan.