Best Loan Apps for Students in India (2024)
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Introduction
There are several popular lending programmes in India. However, if you are a student, you cannot get a loan from them. To have enough money, students do not yet work full-time, and in India, children are primarily dependent on their parents until they start working. Students may run out of money trying to cover additional expenses and may also require money to buy books, enter competitions, etc.
It's simple for students to obtain the funds they want to pay for college, thanks to student personal loan applications. With these student loans, you may apply directly to your bank account. Fill out a loan application by downloading any personal loan for student applications. Continue reading to learn about quick loans for students and instant student loans.
Types Of Loans For Students In India
If you are looking for an instant loan, you should consider the following:
Best Overall Personal Loan For Students
mPokket provides a range of loan sizes and payback schedules ranging from 61 to 120 days and a range of Rs.500 to Rs. 30,000.
Best Customer-Friendly Personal Loan For Students
KreditBee provides a range of loan sizes and payback schedules ranging from 62 days to 15 months and a range of Rs.100 to Rs.3,00,000.
Best Budget Personal Loan For Students
KrazyBee provides a range of loan sizes and payback schedules ranging from 1 to 6 months and a range of Rs.1000 to Rs.10,000.
10 Best Loans For Students In India
1. mPokket
mPokket is the most remarkable instant student loan for spending money in India if you're seeking it. It provides loans in amounts ranging from 500 to 20,000 rupees. College students and recent graduates benefit most from mPokket. All students around the country have access to this application. Only a legitimate college ID and proof of address are needed to apply for a loan with mPokket. Young professionals require a payment receipt, a bank statement, and evidence of identification and residency.
Features Of mPokket
- This software allows students to get loans quickly. Instant loans in India are available in as little as two minutes and range from 500 to 30,000 rupees.
- You have between 61 and 120 days to repay it.
- Every month, the interest rate ranges from 1% to 6%.
- The processing fee ranges from Rs. 34 to Rs. 203 + GST (18%).
2. KreditBee
Another useful app for instant student loans is KreditBee. Up to Rs. 300,000 in loans may be obtained, with interest rates as high as 29.5% per year. You can apply for one of these loans between 21 and 56. They also offer a digital application form that may be completed. For the loan to be approved, you must upload all of your supporting documentation via the app.
Features Of KreditBee
- Amounts ranging from 100 to 3,00,000 rupees may be borrowed.
- The duration ranges from 62 days to 15 months.
- The annual range of interest rates is 0% to 29.95%.
- Processing costs might be anything between 0% and 7%.
3. KrazyBee
One of the most popular loans for student online applications in India, KrazyBee, enables college students in certain Indian areas to purchase anything online with a flexible monthly payment schedule. Anyone who is enrolled at one of the institutions mentioned by KrazyBee and over the age of 18 can make a purchase. Another top-notch student loan app in India is KrazyBee. A loan for a college student may cost as little as Rs. 1,000 or as much as Rs. 10,000.
Features Of KrazyBee
- Mumbai, Hyderabad, Bangalore, Pune, Mysore, and Vellore are the locations of KrazyBee's offices.
- With this loan for students in India app, you can either browse the product catalogue of KrazyBee on your browser or app and place an order for the item just like you would with any other eCommerce store, OR you can browse your preferred eCommerce store and use it to make purchases from KrazyBee's website.
- The most you may spend each month is Rs. 2,000.
- Three, six, nine, and twelve-month EMI payment options are available.
4. Sahukar
The Sahukar app is fantastic for students looking for modest loans up to 5,000. They impose a monthly interest rate of 3% on the loan amount. To be eligible, you must be at least 18 years old and have a legitimate student ID from an accredited institution or university. It takes 24 hours to process the loan. You can repay the loan one to three months following the payout date.
Features Of Sahukar
- Students are eligible for an immediate loan between Rs. 100 and Rs. 5000.
- The duration might range from one to three months.
5. Slice Pay
SlicePay offers loans to students with no-cost EMIs. They use MasterCard to aid them in doing this. Your name, the college you attend, your ID card number and details regarding your Aadhar and PAN must be provided when you download the app. SlicePay offers loans to students in undergraduate and graduate programmes up to Rs. 10,000. Their loans have terms between 30 and 90 days. Additionally, SlicePay costs 3% interest each month. The funds will be sent swiftly via the Unified Payments Interface or to your bank account.
Features Of Slice Pay
- SlicePay India's student loan app allows users to borrow amounts ranging from 2,000 to 10 lakhs of rupees.
- It is free to stretch out payments over three months.
- With your Slice card, you may receive up to 2% cashback on each purchase.
- In addition, you may transfer funds instantly from your Slice card to your bank or Paytm accounts.
6. CashBean
One of the greatest applications for students seeking loans is this one. You may borrow up to Rs 60,000 using the Cash Bean app, with interest rates as high as 33% per year and a processing charge of 18%. P & C Financial Services Private Limited, registered with the RBI, creates CashBean. This makes it a trustworthy source. There is no requirement for a credit history when applying for a loan, and the procedure is fully paperless and digital. To be eligible for a loan, you must be a resident of India with a regular source of income and be between the ages of 21 and 56.
Features Of CashBean:
- With a three- to six-month payback schedule, this quick loan for student app provides loan amounts ranging from Rs. 1,500 to Rs. 60,000.
- At the moment, the daily interest rate is 0.07 per cent.
- The one-time processing fee ranges from Rs 90 to Rs 2,000 + GST (18%).
7. RedCarpet
Most individuals would suggest asking their parents for assistance and consulting with their friends and coworkers to see if they can provide them with further financial support. However, individuals frequently become angry when they don't get the money they need. With RedCarpet Loan, a personal loan with a greater credit limit may be secured via an ATM or debit card, ensuring that no such student or self-supporting individual misses out on a chance due to a lack of finances.
Features Of RedCarpet
- The application does not want a flat sum payment for its loan; instead, it requests a credit line.
- Only those who have obtained a personal loan from the business are eligible to receive the Ruby card. Like a debit card, the cash is disbursed under the loan amount.
- Using this debit card, you may withdraw up to $1,000 without paying additional fees.
- A spending tracker is included in the RedCarpet app corporation. This makes it simple to monitor your spending, examine it, and view your whole card account every day of the year.
8. BadaBro
One of the top rapid loan applications for students in India is called BadaBro. The firm that developed it was designed for college students and professionals with stable employment. More than 100,000 people use BadaBro because it immediately provides quick loans and deposits with the funds into your bank account. You will want your Aadhaar, PAN, employment ID (if applicable), and other essential information to register and complete your profile. Once your credit score has been examined, you may acquire the loan amount because the entire procedure is done online.
Features Of BadaBro
- Request online, and BadaBro will promptly reimburse your PayPal or bank account.
- You may earn rewards by telling your friends about BadaBro.
- To complete the creation of your profile, upload your PAN or Aadhaar, enter your employee ID, or fill out a few short blanks.
- Credit restrictions and authorisation of online profiles are given.
9. Pocketly
The fastest student loans are known for being provided by Pocketly. Depending on the loan amount and length, they impose interest rates ranging from 1% to 3% each month (12-36% annually). From Pocketly, students may borrow up to Rs. 50,000. It is accessible to Android phone users through Google Play. You can also apply for top-up loans to pay your monthly bills promptly and consistently. Your Paytm wallet, bank account, or regular bank account will get the money.
Features Of Pocketly
- Your credit limit will rise if you pay your bills on time.
- Upload documents for user verification, underwriting, and KYC.
- Build Credit.
- Between 500 and 10,000.
- Loan refinancing as well as loan extensions or restructuring.
10. StuCred
The difficulties that college students face are well known to StuCred. Therefore, StuCred pledges to use sustainability and the availability of quick loans for students to make financial independence a reality for everyone.
Features Of StuCred
- You may upload secure papers to be promptly reviewed with this app.
- Through StuCreds Student Loans, which have an interest rate of 0%, Indian students can obtain immediate cash.
- The entire procedure is quick and straightforward, thanks to the app.
- You may start increasing your credit score with StuCred while still in school. This major financial score will significantly impact your life.
What Are The Pros And Cons Of Loans For Students?
Both benefits and drawbacks should be considered while taking a student loan. Let's examine some of these advantages and disadvantages to assist you in choosing the course of action that looks ideal for your particular circumstance.
What Things To Look For While Applying For Loans For Students?
A good higher education can aid in establishing the basis for a reliable job and a greater salary. However, a significant portion of our population cannot afford higher education due to the sharp increase in costs. As a result, obtaining student loans from banks and NBFCs has replaced other funding options for higher education. Before requesting a student loan, you should consider the following:
Loan Amount: Your education loan amount should be sufficient to cover main costs, such as the cost of a laptop, equipment, and books, in addition to the course price. The maximum loan amounts for domestic and international courses are Rs. 10 lakh and Rs. 20 lakh, respectively. Lenders, however, could consent to larger loans for programmes given by reputable institutions like IIMs, IITs, ISB, etc. You should thus contrast the loan amounts provided by as many lenders as you can for your course.
Repayment Period: In addition to the course term, during which borrowers are exempt from making EMI payments, lenders typically give a moratorium period of one year. Once they begin paying back their EMIs, the borrowers are given a 15-year payback period. But as soon as the loan is disbursed, the interest computation begins, and the accumulated interest is applied to your principle. The lender may extend the moratorium period by an additional two years if the borrower cannot finish the course by the deadline or intends to launch his own business.
Rate of Interest: Education loan interest rates typically begin at roughly 6.75% per annum, depending on the type of course, the school, prior academic success, the credit score of the student or co-applicant, and the security provided. Lenders impose simple interest rates throughout the moratorium and compound interest rates after EMI installments have started. Be aware that some lenders additionally provide interest concessions on the loan's interest component during the moratorium period of up to 1%. Therefore, to lower their overall interest expense, borrowers should endeavour to pay the simple interest accumulated during the moratorium period.
Margin Money: Lenders typically require borrowers to pay for a portion of their educational expenses out of pocket. However, there is no need for a margin deposit for up to Rs 4 lakh student loans. For loans exceeding Rs 4 lakh, margin deposits of 5% and 15% are required for domestic and international courses, respectively. Some lenders, such as SBI, do not need margin money for courses taken at prestigious universities.
A Tie-Up Between College and Banks/NBFC: To arrange education loans for their students, several educational institutions work with banks and NBFCs. Therefore, those interested in higher education should inquire with their institution/university about current agreements for education loans with banks or NBFCs. Such partnerships may aid in obtaining student loans at reduced interest rates and may hasten the loan application procedure.
Estimate the Future Earnings to Calculate the EMIs: Students who intend to use loans to pay for their higher education should carefully review their qualified universities' average wage and placement history. They might use this information to roughly predict their projected monthly income and appropriately calculate their EMI and loan terms. To maintain their credit score and future loan eligibility, borrowers should refrain from adopting an aggressive repayment plan. Any EMI delinquency brought on by unemployment or lower-than-expected earnings will negatively impact. There is never a prepayment penalty for borrowers who repay their student loans later.
Tax Benefits: Under Section 80E of the Income Tax Act, anyone who takes out school loans for themselves, their children, their spouses, or minor children under guardianship can claim tax deductions. There is no maximum limit to this deduction, which is allowed on the loan's interest portion. However, from the day EMIs started, the deduction is only valid for eight years. To maximise tax benefits, borrowers should attempt to return their loan within 8 years.
Frequently Asked Questions
Which are the loan apps for students?
In India, mPokket, Pocketly, KrazyBee, KreditBee, Sahukar, SlicePay, CashBean, and BadaBro are students' top personal loan applications. Students may apply for loans instantly using these applications.
How to apply for a personal instant loan for students?
Numerous businesses, websites, and applications claim they can approve your application for an immediate loan with little to no paperwork—or none at all—within minutes or the same hour. You must submit supporting documentation and complete a Know Your Customer (KYC) form to be approved for this fast loan.
What is the minimum interest rate of loan apps for students?
Depending on your eligibility and the lender's criteria, the interest rate for the best fast loan app for students may range from 0% to 36%.
Conclusion
In addition to the aforementioned lending applications, India offers several other lending apps that offer quick personal loans. As consumer awareness and acceptance have grown in recent years, the industry has expanded significantly and welcomed many new businesses. Even though borrowing has become easier to acquire thanks to these money lending apps in India, you should always read the terms and conditions before signing up to ensure you fully comprehend the borrowing and payback terms.
What are you still holding out for? Choose your favourite and sign up for India's top student personal loan right now!
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