Applying for a Loan Online vs. In Person: What’s the Difference?
Both online and in-person personal loan applications can be safe and efficient, but they differ regarding convenience, speed and personal support. One option might suit you better, depending on your needs and preferences.
MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.
Quick Take
Online loans are typically quicker, taking about 10 to 15 minutes to apply and one to three business days to fund.
In-person loans can take up to an hour to apply for and up to seven business days to fund.
The required documentation is similar, if not identical, for both types of loans.
Online loans often allow borrowers to prequalify, while in-person lenders may not.
Key Differences Between Online and In-Person Loan Applications
When you're exploring how to get a loan, the difference between online and in-person application processes might sway you toward one or the other. Here's a side-by-side look at online and in-person loan applications.
Feature | Online | In Person |
|---|---|---|
Funding speed | 1 to 3 business days | 1 to 7 business days |
Prequalification | Submit personal and income information | Submit personal and income information |
Credit impact | -Soft inquiry to prequalify -Hard inquiry for application | -Prequalification may not be available -Hard inquiry for application |
Support type | Chat, phone support, email | Face-to-face for initial application, phone, email or chat for follow-ups |
Document submission | Upload to the lender’s platform or email | Bring documents to your scheduled appointment |
Signature type | E-sign via PIN number, typed name or electronic signature | In-person signature |
Availability | Both online-only banks and brick-and-mortar institutions offer online loans | In-person loans not available at online-only lenders |
How To Apply for a Loan Online
Gather documents, including your driver’s license, Social Security number and pay stubs.
Fill out a prequalification form on the lender’s website. There will be a soft pull, with no credit impact.
Compare offers. Consider interest rates, annual percentage rates (APRs), prepayment penalties and terms.
Complete and submit the application. This step will come with a hard credit pull.
Wait for approval.
Review terms and accept the loan by e-signing documents.
Receive funds.
How To Apply for a Loan In Person
Gather documents, including your driver's license, Social Security number and proof of income.
Visit a branch location and meet with a loan officer.
Discuss your loan needs, including the amount and purpose.
Complete the application with the loan officer.
Submit your documents for review.
Wait for approval.
Sign the loan agreement in person and receive your funds.
Documents You’ll Need
The documents you’ll need for both in-person and online loans are similar and include the following:
Proof of identification, including state-issued ID and Social Security number, physical address and contact information
Proof of income and assets
Employer information
How Long Does It Take To Apply?
In Person
Applying in person typically takes 15 to 60 minutes.
In addition to the time it takes to drive to the lender's location, you'll sit down with a loan officer to discuss the kind of loan you want, how much you want to borrow and your qualifications. This discussion extends the time it takes to apply.
Online
Online applications usually take just 10 or 15 minutes if you have the information handy when you start.
How You Submit Documents and Sign Paperwork
In Person
When you apply for a loan in person, the lender will ask you to bring in documents such as:
Your ID
Proof of income
Bank and/or investment statements
After the application is complete, you'll sign the application to complete the process.
Online
When you apply online for a loan, you upload your documents by taking a photo of them with your cell phone, or by linking to your financial institution or paycheck provider.
You'll sign documents digitally — no paper and no ink signatures required.
How Much Support Will You Get?
In-Person
An in-person loan application gives you much better support because you'll be sitting in front of the loan officer. They'll walk you through the process, and you can ask questions or voice concerns, if you have any.
Online
Online applications often give you the option of speaking with a live representative. While helpful, it's not the same as working face-to-face with a loan officer, and you won't have an opportunity to build a relationship.
How Long Does It Take To Approve and Fund Your Loan?
In Person
If the in-person lender uses an automated decision tool and can submit documents digitally to the underwriter for verification, you might get your loan approved the same day.
Funding can also be very fast, especially if you're applying at a bank or credit union where you already have accounts. However, the loan process might be restricted to business hours.
Online
Your chances of quick approval and funding are better with an online application because the process is almost always fully automated. Plus, it begins as soon as you submit your application, regardless of the time of day or day of the week.
Pros and Cons of Applying Online
Knowing the pros and cons of applying online will help you decide if this is the right choice for you.
Pros | Cons |
|---|---|
Apply any time, from your phone or computer | Less personal support |
Usually allow for prequalification to check eligibility | Risk of scams if you don't use a reputable lender |
Approval and funding might be faster | May not be available for all types of personal loans or in all locations |
Easy to compare multiple lenders |
Pros and Cons of Applying In Person
Applying for a loan in person has its advantages, but there are also some drawbacks to consider:
Pros | Cons |
|---|---|
Real-time help if you have questions and concerns | Process might be slower |
Opportunity to build a relationship with the lender | Limited to local lenders and business hours |
Can help you get approved if you're having trouble qualifying for your loan | Might require more paperwork |
Possibility of easier approval and better rates with existing bank relationship |
When Should You Apply Online vs. In Person?
The right choice for you depends on your needs and preferences.
Apply Online If
You need the loan fast.
You're comfortable working online and submitting documents digitally.
You want to compare rates easily.
Apply In Person If
You want one-on-one help.
You're applying for a large or complex loan.
You have an existing relationship with a local or community lender.
How To Verify a Loan Lender
Visit NMLS Consumer Access and enter the lender’s name to see if it is authorized to conduct business in your state.
Check for reviews and information on the Better Business Bureau (BBB) website and TrustPilot.
Check “best online lender” lists on reputable consumer finance websites.
Do an online search for recent news about the lender.
FAQs
Are online loans safe?
Online loans are safe as long as you choose a trusted, licensed lender. The Federal Trade Commission recommends searching the lender's name along with terms like "review," "complaint" or "scam." You can also search for a lender on the BBB website.
Does prequalification affect my credit score?
No, a prequalification -- checking your eligibility for a loan and offering an estimated APR, term and payment -- is based on a soft credit inquiry, which does not affect your credit score.
Are online loans available in every state?
Yes, but not all online loan lenders offer loans in all states, depending on licensing regulations and other factors.
Is it better to get a loan online or from a bank?
If you appreciate working face-to-face with a loan officer and can wait a few days to get the loan money, consider applying in person. An online loan is better if you need quick funding and are comfortable working online.
What do I need to apply in person vs. online?
You'll need similar information and documents either way: Government-issued photo ID, Social Security number, your employer's information and any proof of income and assets the lender specifies, for example.
Do online loans get approved faster?
Not always, but in many cases, yes, online loans tend to get approved faster.
Daria Uhlig contributed to the reporting for this article.
Photo Credit: katleho Seisa / Getty Images
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