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November 15, 2021

Applying for an MSME Loan: Online vs Offline Mode

    • November 15, 2021
    • By Team Kinara
    • < 1 mins read

    MSME Loan

    Doing things 'in person' may appear to be the best way to approach a business loan. However, today's technological advancements have made it equally safe and convenient to obtain online business finance, if not more. Wondering how to apply for an MSME loan? We are here to help you out.

    Both online and offline modes of application have their own benefits and advantages. It's up to you to decide which mode will suit you better. At Kinara Capital, we offer both ways and ensure that you get all the support and guidance you need. Let us understand how to apply for an MSME loan with Kinara capital, offline as well as online.

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    The Offline Mode

    In India, the traditional method of obtaining loans has been through the offline mode. In this case, the borrower goes to a lender or a financial institution in person and applies for a loan by filling out a form and submitting the necessary documents. Physical copies of the required documents are verified by the potential lender, and the person applying for the loan may be granted the loan if his or her profile qualifies for one.

    When obtaining a business loan from Kinara in person, the business owner develops relationships with the loan officer. The rapport that a businessperson establishes can allow both parties to understand their respective needs. Since Kinara officers visit the home or business location of the customer and interact with them, it can save time and effort, since they don’t have to take the time to visit a branch. The requisite documents can also be collected in person by the Kinara Officer, so that the process is secure and hassle-free for the customer.

    Benefits of physical mode:

    • Guidance at every step
    • Easier for those who are not technologically savvy
    • Helps build relationships
    • Personalized service
    • 24-hour loan disbursement

    The Online Mode

    Online lending and borrowing are becoming increasingly common today. When a person applies for an online business loan from Kinara, they can determine the amount of loan available as well as their eligibility criteria by visiting our website. Once they clear the eligibility, they can fill out the necessary forms, and upload the required documents online to obtain the loan. The loan sanction is communicated via email or any other method specified in the lender's or financial corporation's portal.

    Online loans can be applied from anywhere at any time using just your smartphone or laptop that is connected to the internet. You can apply for business loans without having to visit a Kinara branch or meet a loan officer in person.

    Benefits of online mode:

    • Can be completed outside of business hours
    • 1-minute eligibility check
    • Saves time
    • 24-hour loan disbursement

    Which One is For You?

    To summarise, both online and offline business loans are beneficial in their own way. They each have their advantages, and a person in need of a loan should assess their situation to determine which is best for them. Kinara makes things easier by ensuring that both the online process and the offline one are easy and fast, and can be accessed from the comfort of your home, but there are still some differentiators that might make you partial to one mode over the other.

    For example, a small business entrepreneur who is not well equipped with the online application mode may prefer an offline business loan because they will understand the application process and loan terms and conditions better in a face-to-face conversation than they would online. On the other hand, a business owner who has at least a basic know-how of how things work online may find it easier to obtain an online business loan because they can do so at any time and from any location.

    Digital advancements such as Aadhaar-based authentication, digital land/property records, e-signatures, and e-banking have aided the growth of online business loans. Still, what we've seen so far is only the beginning. Lending has expanded from a relationship-based activity to one that is also based on data and algorithms, which benefits both lenders and borrowers.

    Whichever mode you choose, you can connect with Kinara Capital and begin your loan application today!

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    Written by
    Team Kinara
    • Tags
    • MSME Loan
    • Business Financing
    • Working Capital
    • Fintech Loan
    • Business Loan
    • HerVikas

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