Unsecured Bank vs Online Loans: Which Is Better?

Unsecured loan is one of the banking products that provides loan facilities without an asset that is used as collateral for the loan. So, for those of you who don’t have any assets, you can still apply for this unsecured loan.

But because the submission is without guarantees at all, people tend to be more difficult to apply for this type of loan. Banks need to review carefully whether you deserve a loan or not. This review process often makes it harder for someone to get a loan. This often makes prospective debtors (fund borrowers) switch to applying for loans online.

Unsecured loan filing types online / online loan is being popular within the last few years, several examples of companies engaged in this field is Money Friend and Doctor Rupiah. There are some people who feel that applying for a loan online is not a good idea. However, some others think that using an online loan can be the right way to meet sudden funding needs. If you want to find out more, we will do a comparison, unsecured loan Bank vs Online Loans: Which Is Better?

Both types of loans are on the following points:

Administrative costs

money costs

If the unsecured loan from the bank is generally found, administrative costs are included, including fees, annual fees, late payment fees, and even if you want to pay off the loan faster than the agreed limit you will also be charged. The types of costs that usually require large funds sometimes make customers need to spend more.

Unlike unsecured loan, online loans do not charge administrative fees anymore. However, there are additional costs such as service fees and interest transferred to loans. More about online loan interest will be discussed at the points below.


Fund Disbursement Process

When you want to apply for unsecured loan to the bank, customers can submit online or directly visit the bank. The process of disbursing funds also depends on the completeness of the requirements owned by the customer, and of course the bank will check the credit score of the historical IDI owned by the customer. If everything is in accordance with the bank’s provisions, the unsecured loan loan submitted by the customer can be liquid immediately within a day or even faster.

Not much different from unsecured loan, online loans are also submitted online so that debtors can apply for loans from anywhere and anytime. The process of disbursing funds is also quite fast, some of which take 1-3 days. Usually they also carry out a verification process through the system and the parties to see whether the customer is eligible to get a loan or not.




The term of a unsecured loan loan is within the bank for up to 36 months or even more. Customers can pay a longer term unsecured loan payment. In contrast to online loans which usually have to range from 1-4 weeks. Of course if you need more time to pay in installments, it would be better if you use unsecured loan from the bank only.


Loan size

Loan size

If you need large funds, you can use unsecured loan from the bank. Usually people who apply for bank loans allocate loan funds for expenses such as education, marriage, hospital payments, and other costs that tend to be large. Unlike online loans that usually cannot provide large loans, the range is only in the amount of 1,000,000-4,000,000 rupiahs.


Interest rate

Interest rate

The interest rates offered by unsecured loan are usually lower than credit cards, besides the interest is also fixed and does not change during the term of the loan contract. Besides the interest charged by the bank is usually per month. Unlike online loans which usually charge interest calculated per day. Of course this can make your total loan bigger at the end of debt repayment. So the longer you take the loan tenor, the higher the interest will be charged on your loan.


So, Is Applying for Online Loans the Right Step?

So, Is Applying for Online Loans the Right Step?

We do not recommend at all if you want to apply for a loan online. Of course because of the large interest rates that can reach 1% per day. Imagine if you apply for a loan with a tenor of 30 days, then the interest you have to pay in a month is 30%. This is completely inversely proportional to unsecured loan loans from banks, which are only in the range of 1-2% per month. In short:

The interest rate that applies in online loans in 1 month is equivalent to the interest rate applicable on credit cards in 1 year / unsecured loan interest rate in 1, 5 years

The plus points that are often discussed are that applying for an online loan tends to be easier, especially for those who have been listed on the BI blacklist. If indeed you have funding needs, and it is not possible to apply for a loan to the bank, then the best way is to try to find a loan from a friend or relative. Don’t get trapped in a loan system that doesn’t allow you to repay the loan. So, the option to apply for an online loan seems inappropriate, even one of the Regional Heads mentioned online loans like this as moneylenders who use online facilities .


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