Table of Contents
- 1 Introduction
- 2 10 Best Loan Apps for Students in India
- 3 Importance of Loans for Students
- 4 Types of Loan Apps for Students
- 5 Benefits of Using Loan Apps for Students
- 6 Factors to Consider When Choosing a Loan App
- 7 Pros and Cons Of Loan Apps For Students
- 8 Conclusion
- 9 FAQ’S For Loan Apps For Students
- 10 READ MORE:
As students strive to pursue their academic dreams, the rising costs of education can present significant financial challenges. Many students find themselves in need of additional funds to cover tuition fees, books, housing, or other educational expenses.
In such situations, loan apps specifically designed for students can be a lifeline, providing easy access to financial assistance. In this article, we will explore the world of loan apps for students, their benefits, popular options, and essential considerations when choosing the right app for your needs.
10 Best Loan Apps for Students in India
|Loan App||Loan Amount Range||Repayment Period||Interest Rates||Processing Fees|
|mPokket||500 – 20,000 rupees||61 – 120 days||1% – 6% per month||Rs. 34 – Rs. 203 + GST (18%)|
|KreditBee||100 – 3,00,000 rupees||62 days – 15 months||0% – 29.95% per year||0% – 7%|
|KrazyBee||1,000 – 10,000 rupees||Varies||Varies||Varies|
|Sahukar||100 – 5,000 rupees||1 – 3 months||3% per month||N/A|
|Slice Pay||2,000 – 10 lakh rupees||30 – 90 days||3% per month||N/A|
|CashBean||1,500 – 60,000 rupees||3 – 6 months||33% per year||18%|
|Pocketly||500 – 10,000 rupees||Varies||1% – 3% per month||N/A|
- mPokket: mPokket is an exceptional instant student loan app in India, providing loans ranging from 500 to 20,000 rupees. It caters specifically to college students and recent graduates. All students across the country can access this application. To apply for a loan with mPokket, you only need a valid college ID and proof of address. Young professionals require a payment receipt, bank statement, and identification and residency proof.
Features of mPokket:
- Quick loan disbursal, with loans available in as little as two minutes, ranging from 500 to 30,000 rupees.
- Repayment period ranging from 61 to 120 days.
- Monthly interest rates vary between 1% and 6%.
- Processing fee ranges from Rs. 34 to Rs. 203 + GST (18%).
- KreditBee: KreditBee is another popular app for instant student loans in India. You can borrow up to Rs. 300,000 with interest rates ranging up to 29.5% per year. Loan durations can be anywhere between 21 to 56 days, and the application process can be completed digitally, requiring you to upload all supporting documents through the app.
Features of KreditBee:
- Loan amounts available from 100 to 3,00,000 rupees.
- Loan durations ranging from 62 days to 15 months.
- Annual interest rates range from 0% to 29.95%.
- Processing fees can range from 0% to 7%.
- KrazyBee: KrazyBee is a popular loan app for students in India, enabling college students in specific Indian regions to make online purchases with a flexible monthly payment schedule. To be eligible, you must be enrolled at one of the institutions specified by KrazyBee and be over 18 years of age. The loan amount for college students can range from as low as Rs. 1,000 to as high as Rs. 10,000.
Features of KrazyBee:
- KrazyBee has offices in Mumbai, Hyderabad, Bangalore, Pune, Mysore, and Vellore.
- You can browse KrazyBee’s product catalog on their website or app, or use it to make purchases from other eCommerce stores.
- Monthly spending limit set at Rs. 2,000.
- Offers three, six, nine, and twelve-month EMI payment options.
- Sahukar: Sahukar is a great app for students seeking small loans of up to 5,000 rupees. They charge a monthly interest rate of 3% on the loan amount. To be eligible, you need to be at least 18 years old and have a valid student ID from an accredited institution or university. The loan processing takes 24 hours, and the repayment period is typically one to three months from the payout date.
Features of Sahukar:
- Students can get immediate loans ranging from Rs. 100 to Rs. 5,000.
- Loan durations range from one to three months.
- Slice Pay: SlicePay offers no-cost EMI loans for students using their MasterCard. To apply, you need to provide your name, college details, ID card number, and Aadhar and PAN information. They provide loans to undergraduate and graduate students in India, with loan amounts up to Rs. 10,000. The loan terms range from 30 to 90 days, and SlicePay charges 3% interest per month. The funds can be swiftly transferred via Unified Payments Interface or to your bank account.
Features of Slice Pay:
- Loan amounts range from 2,000 to 10 lakh rupees.
- Option to stretch payments over three months.
- Up to 2% cashback on purchases made with the Slice card.
- Instant transfer of funds from Slice card to your bank or Paytm accounts.
- CashBean: CashBean is a top application for students seeking loans, allowing you to borrow up to Rs. 60,000. The app charges interest rates as high as 33% per year and a processing fee of 18%. CashBean is registered with the RBI through P & C Financial Services Private Limited, ensuring its reliability. The application process is fully digital and paperless, with no requirement for a credit history. To be eligible, you must be an Indian resident with a regular source of income and be between the ages of 21 and 56.
Features of CashBean:
- Loan amounts range from Rs. 1,500 to Rs. 60,000, with a repayment period of three to six months.
- Daily interest rate is 0.07%.
- Processing fee ranges from Rs. 90 to Rs. 2,000 + GST (18%).
- RedCarpet: RedCarpet ensures that students and self-supporting individuals do not miss out on opportunities due to lack of finances. It offers personal loans with a higher credit limit through an ATM or debit card. To be eligible for the Ruby card, which functions like a debit card disbursing the loan amount, you must have obtained a personal loan from the company. With the RedCarpet app, you can withdraw up to Rs. 1,000 from the card without additional fees. The app also includes a spending tracker to monitor your expenses and manage your card account.
Features of RedCarpet:
- No flat sum payment requirement; instead, it operates on a credit line system.
- Eligible users can receive the Ruby card, which works like a debit card for loan disbursement.
- Withdraw up to Rs. 1,000 without additional fees.
- Includes a spending tracker to monitor expenses and view your card account.
- BadaBro: BadaBro is a popular rapid loan app designed for college students and professionals with stable employment. It provides quick loans and directly deposits funds into your bank account. To register and complete your profile, you will need your Aadhaar, PAN, employment ID (if applicable), and other essential information. The entire process, including credit score evaluation, is done online.
Features of BadaBro:
- Apply online, and BadaBro will swiftly transfer funds to your PayPal or bank account.
- Earn rewards by referring friends to BadaBro.
- Complete profile creation by uploading PAN or Aadhaar, entering employee ID, or filling out a short form.
- Credit limits and online profile authorization are provided.
- Pocketly: Pocketly is known for offering the fastest student loans. Interest rates range from 1% to 3% per month (12-36% annually) depending on the loan amount and duration. Students can borrow up to Rs. 50,000 through Pocketly. The app is available for Android users on Google Play. It also offers top-up loans for timely bill payments. The funds can be received in your Paytm wallet, bank account, or regular bank account.
Features of Pocketly:
- Credit limit increases with timely bill payments.
- Secure document uploads for user verification, underwriting, and KYC.
- Build credit history.
- Loan amounts range from 500 to 10,000 rupees.
- Loan refinancing, extensions, or restructuring options available.
- StuCred: StuCred understands the challenges faced by college students and aims to make financial independence a reality for everyone through sustainable and quick student loans.
Features of StuCred:
- Secure document uploads for prompt review.
- Indian students can obtain immediate cash through StuCreds Student Loans, which carry 0% interest.
- The app streamlines the entire process, making it quick and straightforward.
- Start building your credit score with StuCred while still in school, as it significantly impacts your financial future.
These ten loan options provide convenient and accessible financing solutions for students in India. Whether you need funds for tuition, books, living expenses, or any other educational needs, these apps offer a range of loan amounts and repayment terms to suit your requirements. Remember to carefully review the terms and conditions of each app before applying for a loan.
Importance of Loans for Students
Education is an investment in one’s future, but the cost of obtaining a degree or pursuing higher studies continues to rise. Scholarships, grants, and personal savings may not always be sufficient to cover all the expenses. This is where loans for students play a crucial role. They bridge the gap between available funds and the actual cost of education, enabling students to focus on their studies without financial stress.
Types of Loan Apps for Students
When it comes to loan apps for students, there are various options available catering to different needs and financial situations.
Personal Loan Apps
Personal loan apps are versatile and can be used for a wide range of purposes, including education-related expenses. These apps provide quick access to funds without the need for collateral or a specific purpose. They often have user-friendly interfaces, allowing students to apply and receive funds directly through their smartphones.
Education Loan Apps
Education loan apps are specifically designed to cater to the financial needs of students. They offer competitive interest rates and flexible repayment options tailored to the unique challenges faced by students. These apps often collaborate with educational institutions or government programs to provide additional benefits such as deferred payments until after graduation.
Credit Card Apps
Although credit cards are not loans in the traditional sense, they can still serve as a financial resource for students. Credit card apps allow students to manage their expenses, build credit history, and make payments conveniently. However, it’s important to use credit cards responsibly and pay off the balances on time to avoid accumulating debt.
Benefits of Using Loan Apps for Students
Loan apps for students offer several advantages that make them an attractive financial solution for education-related expenses.
Convenience and Accessibility
One of the significant benefits of loan apps is their convenience and accessibility. With just a few taps on their smartphones, students can complete the entire loan application process from anywhere, at any time. This eliminates the need for visiting physical branches or going through lengthy paperwork, saving time and effort.
Fast and Easy Application Process
Loan apps streamline the loan application process, making it quick and straightforward. Students can fill out the necessary information, upload required documents, and submit their applications within minutes. The apps utilize technology and automation to expedite the verification and approval process, allowing students to receive funds promptly.
Competitive Interest Rates
Loan apps understand the financial constraints faced by students and offer competitive interest rates. These rates are often tailored to be more affordable than other traditional borrowing options, helping students manage their finances more effectively.
Flexible Repayment Options
Loan apps recognize the challenges students may face while repaying their loans. To accommodate varying financial circumstances, they provide flexible repayment options. Some apps offer extended repayment periods, grace periods after graduation, or income-based repayment plans. These options ensure that students can repay their loans comfortably without jeopardizing their financial stability.
Building Credit History
For students who have limited or no credit history, loan apps provide an opportunity to start building credit. Timely repayments on these loans can help students establish a positive credit record, which is crucial for future financial endeavors, such as renting an apartment or securing a car loan.
Factors to Consider When Choosing a Loan App
- Interest Rates and Fees: Compare the interest rates offered by different loan apps for students. Look for apps that provide competitive rates and transparent fee structures. Keep in mind that lower interest rates can save you money in the long run.
- Repayment Terms: Evaluate the repayment terms offered by different apps. Look for flexibility in terms of repayment period, grace periods, and options for deferment or forbearance. Choose an app that aligns with your financial capabilities and future plans.
- Loan Limits: Check the loan limits set by the app. Ensure that the loan amount they offer is sufficient to cover your educational expenses. Some loan apps may have lower limits, so it’s important to choose one that meets your specific needs.
- Approval Time and Disbursement: Consider the time it takes for the loan app to process applications and disburse funds. If you need the funds urgently, opt for an app that offers quick approval and fast disbursement.
- Eligibility Criteria: Review the eligibility requirements of different loan apps. Some apps may have specific criteria, such as minimum credit scores or enrollment in a recognized educational institution. Choose an app that aligns with your eligibility status to improve your chances of approval.
- Customer Support: Assess the quality of customer support provided by the loan app. Look for apps that offer responsive customer service and multiple channels of communication. In case you encounter any issues or have questions, it’s important to have reliable support available.
- Reputation and Reviews: Research the reputation of the loan app and read reviews from other users. Consider apps that have positive feedback, good ratings, and a track record of reliable service. This can give you confidence in the app’s credibility and trustworthiness.
Pros and Cons Of Loan Apps For Students
|Enables access to higher education||Accumulation of debt|
|Provides financial support for tuition||Interest accrues during loan term|
|Allows flexibility in course selection||Repayment responsibilities after graduation|
|Can cover additional educational expenses||Potential impact on credit score|
|Offers deferred repayment options||Limited job prospects or lower income|
|May come with lower interest rates||Dependency on loan for educational costs|
|Some loans offer tax benefits||Potential difficulty in loan repayment|
|Builds credit history||Possibility of loan default or delinquency|
Loan apps for students provide convenient and accessible financial solutions to cover educational expenses. They offer benefits such as convenience, quick application processes, competitive interest rates, and flexible repayment options.
When choosing a loan app, consider factors such as interest rates, repayment terms, loan limits, approval time, eligibility criteria, customer support, and reputation. By making an informed decision, you can find the right loan app that meets your financial needs while supporting your educational journey.
FAQ’S For Loan Apps For Students
What are loan apps for students?
Loan apps for students are mobile applications or online platforms that offer personal loans specifically designed for students. These apps provide quick and convenient access to funds for educational expenses, living costs, or any other financial needs that students may have.
How do I apply for a personal loan using a loan app?
To apply for a personal loan using a loan app, you typically need to download the app from the respective app store or visit the app’s website. Create an account, complete the registration process, and provide the necessary information and documentation as requested by the app. This may include personal details, identification documents, proof of enrollment, and sometimes proof of income. Once you submit your application, it will be reviewed by the app’s lending institution, and if approved, the loan amount will be disbursed to your bank account or digital wallet.
What are the eligibility criteria for student loan apps?
The eligibility criteria for student loan apps may vary depending on the specific app and its lending policies. However, common eligibility requirements may include being a student or recent graduate, having a minimum age requirement (usually 18 or above), providing proof of enrollment in an educational institution, and meeting any income or credit score criteria set by the app.
What documents are usually required for applying for a student loan through an app?
While the specific document requirements may differ between loan apps, some common documents that are typically requested include:
1. Valid identification proof (such as Aadhaar card, PAN card, or passport)
2. Proof of address (such as utility bills or rental agreement)
3. Proof of enrollment in an educational institution (college ID card, admission letter, or fee receipt)
4. Bank statements or salary slips (for income verification purposes)
5. Other supporting documents as specified by the loan app.
How long does it take to get a loan approved through a loan app?
The time taken to get a loan approved through a loan app can vary depending on several factors, including the app’s internal processes, the completeness and accuracy of your application, and the volume of loan applications being processed at the time. Generally, loan apps aim to provide quick approvals, and some may offer instant approvals within minutes or hours. However, in some cases, it may take a few days for the loan to be approved and disbursed.
What is the interest rate charged on student loans through loan apps?
The interest rates charged on student loans through loan apps can vary depending on the app, the loan amount, and the borrower’s creditworthiness. It is advisable to review and compare the interest rates offered by different loan apps before choosing one. Interest rates may be fixed or variable and are typically expressed as an annual percentage rate (APR).
Can students with no credit history or poor credit apply for loans through these apps?
Yes, some loan apps cater specifically to students with no credit history or poor credit. These apps may consider other factors such as enrollment status, academic performance, and future income potential rather than relying solely on credit scores. However, the terms and conditions, including interest rates and loan limits, may vary for such applicants.
Are there any fees or charges associated with using loan apps for students?
Loan apps may charge certain fees or processing charges for loan applications and services provided. These fees can include processing fees, administrative charges, or late payment fees. It is essential to carefully review the terms and conditions of the loan app to understand any applicable fees before applying for a loan.
Can the loan amount be used for purposes other than educational expenses?
Yes, in most cases, the loan amount provided by student loan apps can be used for various purposes, including educational expenses, living costs, books, supplies, equipment, or any other legitimate financial need that a student may have. However, it is recommended to use the funds responsibly and within the intended purpose to avoid financial difficulties in the future.
What happens if a student is unable to repay the loan on time?
If a student is unable to repay the loan on time, the specific consequences may vary depending on the loan app and its policies. Typically, late payments may attract additional charges or penalties, and prolonged non-payment can impact the borrower’s credit score, making it difficult to secure future loans. It is important to communicate with the loan app or lending institution if you anticipate difficulty in repaying the loan to explore potential options or repayment plans.