10 Best loan apps for students in India

Student loan apps can provide students with quick access to funds for expenses such as tuition fees, books, rent, travel and other educational needs. Different apps offer varying loan amounts, interest rates, repayment periods and eligibility requirements. Students should compare these factors along with processing fees and repayment terms before borrowing. Checking the required documents and repayment capacity can also help avoid financial pressure later.

Student loan apps are digital platforms that let eligible students apply for loans to meet education-related expenses.

Going for higher education in a new city or country is an exciting and intimidating process. When pursuing their higher education, students face several challenges—a new culture, new people, rigorous courses, and financial requirements.

These could include more than just paying for the tuition – books, rent, travel, food, stationery, and more. Finding financing options and managing these expenses can be difficult. Luckily, several loan apps are available to streamline the process.

In this article, we will explore some of the top loan apps for students, their benefits, and how to choose one that best suits your requirements.

What are the best loan apps for students in India?

1. Tata Capital Loan App & Wealth

The Tata Capital Loan App & Wealth is one of the top student loan apps in India. This instant personal loan app empowers you to manage all your wealth management needs under one roof—apply for loans, track loan repayments, monitor your investments and manage all your finances seamlessly on this app. Get loans from Rs 5,000 to Rs 10,00,000 at attractive interest rates, at flexible repayment tenures and with an easy, hassle-free process.

2. SlicePay

SlicePay is one of the leading providers of student loans. It offers loans of up to Rs 10,000 to both graduate and undergraduate students, has an interest rate of 3%, and a repayment tenure between 30 and 90 days. To apply, you will need to submit your personal information, college ID, and PAN and Aadhaar details. The app transfers funds quickly through bank transfers or Unified Payments Interface (UPI).

3. PaySense

PaySense offers student loans between Rs 5,000 and Rs 5,00,000. To apply, you need to be enrolled in a reputed college or university abroad or in India and must be between the ages of 18 and 35. The app offers easy and seamless approvals and quick loan disbursals.

4. mPokket

mPokket is another app that allows students to access funds for their daily needs. It offers loans between Rs 300 and Rs 30,000 for college students and recent graduates. The application process is simple, requiring only your college ID and proof of address. The app offers instant loan disbursals and has a repayment tenure between 61 and 120 days. Interest rates vary from 1% to 6%.

5. Pocketly

Pocketly offers student loans of up to Rs 50,000, with interest rates varying between 1% and 3%, depending on the loan amount. It also offers additional features, like credit-building features, rising credit limits, top-up loans, and more.

6. StuCred

StuCred strives to provide students with sustainable and easily accessible loans. It is also one of the only apps offering 0% interest rates. You must be a resident of India to apply for a loan with StuCred. Its goals include financial independence and improving students’ credit scores.

7. CashBean

CashBean allows students to avail of loans of up to Rs 60,000 with a 33% annual interest rate. Registered with the RBI, it is a secure and trustworthy app offering a digital application process. You do not need to present credit histories when applying for loans. However, you must be a resident of India, between 21 and 56 years old, and have a regular source of income.

8. KreditBee

KreditBee has a 100% online application process and provides students with loans from Rs 1,000 to Rs 5,00,000. Interest rates range between 17% to 29.95%. KreditBee requires minimal documentation, flexible repayment tenures, and quick loan disbursals. To apply, you must be an Indian citizen, be above the age of 21, and have a monthly income of at least Rs 10,000.

9. Sahukar

Sahukar offers students loans of up to Rs 5,000. It has interest rates of 3% and has flexible repayment tenures. To apply for a loan with Sahukar, students must be above the age of 18 and present a student ID from an accredited university or college.

10. BadaBro

One of the leading loan apps in India for students is BadaBro. It offers immediate loan disbursals, rewards features, and more. To apply, students will need to present their credit scores, Aadhaar card, PAN card, employment ID, and other information.

Also Read – Education Loan Disbursement Process

What are some benefits of using student loan apps?

Student loan apps come with several benefits. This includes quick access to funds, less paperwork, flexible repayment options, and an easy digital process. Let’s learn about these benefits one-by-one:

• Instant access to funds

Most instant loan apps for students offer same-day access to funds. This ensures students won’t have to wait for long to pay for education-related expenses.

• No traditional income proof or collateral needed

Unlike traditional loans, student loan apps do not require mandatory income proof or collateral. Students can get access to funds by having a good academic record and an admission letter from a recognized college or university.

• Early credit history building

Student loan apps allow students to build credit history early in their careers by repaying loans in a timely fashion. This helps them qualify for even bigger loans when they are ready to settle down after their studies.

• Tailored micro-loan amounts

Most loan apps for students offer customized loan amounts to cater to the unique needs of students. You can apply for a loan of a few thousand to a few lakhs, depending on your eligibility.

• Seamless digital process

From the loan application to disbursal, everything happens online. No physical branch visits are required. Students can apply for the loan from the convenience of their home/hostel.

Also Read – Non Collateral Education Loan

How to choose the right loan apps in India for students?

Some factors to consider before choosing the best loan app in India include:

1. Loan amount

The loan amount you choose should cover the costs of any items you may need. This could include laptops, books, rent, travel, and more. It is essential to account for all your expenses and conduct research online to compare different loan offerings.

2. Interest rates

The interest rates for education loans vary depending on the financial institution. This could be a simple or compound interest rate. Finding a financial institution that offers competitive interest rates and flexible tenures can make the repayment process easier.

3. Tax benefits

People who take out student loans can often claim tax deductions. The deduction is based on the loan’s interest portion and is valid for 8 years from the start of the EMI. To maximize tax benefits, try to repay loans within the 8-year window.

What are the eligibility criteria for student loan apps?

While there are no specific eligibility criteria for downloading student loan apps, lenders may ask for certain requirements for approving the loans. These include:

• Age: Applicants usually need to meet the lender’s minimum age requirement.
• Student status: Proof of admission or enrollment in an eligible course may be required.
• Course and institution: Some lenders restrict loans to recognized courses or institutions.
• Academic record: Previous academic performance may be considered for certain loans.
• Co-applicant: A parent, guardian or other eligible co-applicant may be required, especially for higher loan amounts.
• Income: The co-applicant may need to show a stable income and repayment capacity.
• Credit history: The applicant’s or co-applicant’s credit profile can influence approval.
• Documents: Identity, address, admission and income documents may be required.
• Loan purpose: The loan may need to be used for approved education-related expenses.
• Repayment capacity: Lenders assess whether the proposed loan amount is affordable based on the applicant’s overall profile.

Also Read – Education Loan Repayment in India

What are the documents required for student loan apps?

The exact list of documents required may vary by lender. However, an instant loan app for students typically asks for the following papers:

• Proof of identity: Aadhaar Card, PAN Card, Passport or Voter ID.
• Proof of address: Aadhaar Card, utility bill, rental agreement or passport.
• Proof of student status: College ID, admission letter, enrollment certificate or fee receipt.
• Academic documents: Mark sheets, examination certificates or other academic records.
• Bank account details: Bank statement, canceled cheque or account details for disbursal.
• Income proof: Salary slips, bank statements or income-tax documents of the parent or co-applicant, where required.
• Co-applicant documents: Identity, address and income documents of the parent or guardian.
• Passport-size photographs: Recent photographs of the student and co-applicant, if requested.

Comparison table for best student loan apps in India

Note – The above details may change as per respective company policies. For the latest update, check the relevant product sites.

What are the pros and cons of student loan apps?

Student loan apps can make borrowing more convenient, but they also have certain limitations. Consider these pros and cons before choosing the best loan app for students.

Pros

• Quick application: You can apply online without visiting a branch.
• Faster processing: Some apps offer quicker approval and disbursal.
• Simple documentation: Applications may require fewer documents.
• Easy access: Useful for students with urgent education-related expenses.
• Flexible options: Different lenders may offer varied loan amounts and repayment periods.

Cons

• Higher interest rates: Some short-term loans can be expensive.
• Processing fees: Additional charges can increase the overall borrowing cost.
• Limited loan amounts: The amount available may not cover larger education expenses.
• Eligibility restrictions: Students may need a parent or guardian as a co-applicant.
• Repayment pressure: Short repayment periods can make EMIs difficult to manage.

Wrapping up

If you are looking to start your educational journey but require funding, the above student loan apps can help you pay for school supplies, travel, gadgets, and more. Consulting with experts can also help you find the right loan options for your higher-education journey. Tata Capital’s education loans offer high loan amounts, attractive and competitive interest rates, easy disbursals, and allow you to apply with a guardian. To apply for educational loan with Tata Capital and receive guidance from our experts.