5 Best Loan Apps For Students In India

Students generally have a lot of expenses they have to meet. This can be hard to do, especially when they have no real sources of income. Students need to pay ever-increasing tuition fees for higher education programmes, figure out their living expenses and accommodation that include food, transport, etc. and purchase textbooks, equipment and supplies they need for their courses.

Even with parental support, all the expenses add up and could be too much to handle. Beyond applying for financial assistance at their college or university, students also have the option of getting an education loan. Such loans allow students to pay off their debt while generally having larger moratorium periods and lower and flexible interest rates.

This makes it easier for the students to repay the loan once their education is complete and they have a job. Nowadays, the availability of several loan apps in India makes it easier for students to apply for a loan. These apps require less documentation and cut the need to go to bank branches. Here are some of the best loan apps for students in India.

IIFL Loans

This app from IIFL Finance, one of India’s largest non-banking finance companies, provides gold, personal or business loans starting from as low as Rs 5,000. IIFL Finance personal loans are affordable, have low interest rates, and the application can be processed in less than five minutes with a hassle-free documentation process. The EMIs on personal loans are flexible, allowing easier repayment to students who can download the app and easily apply for a loan.

Quick summary about IIFL:

• Loan amount: Rs.5,000 - Rs.5,00,000
• Interest rate: 12.75% - 44% per year
• Repayment tenure: Up to 42 months
• Added features: Quick disbursals, paperless process

SlicePay

SlicePay provides student loans. To apply, students must submit their personal information, including their name, college, ID, and details of their Aadhar and PAN. Loans are offered to both undergraduate and graduate students, up to a limit of Rs 10,000 with repayment terms between 30 and 90 days. A 3% monthly interest fee is charged, and funds are transferred quickly through the Unified Payments Interface or bank account.

Quick summary about SlicePay:

• Loan amount: Upto Rs. 10,000
• Interest rate: 3% per month 
• Repayment tenure: Between 30 and 90 days
• Added features: For undergraduate and graduate students

PaySense

PaySense is another app that offers student and education loans of Rs 5,000-5,00,000. To be eligible for an education loan, the student must have admission at a reputable institute abroad or in India. They must be between the ages of 18 and 35 and must be a resident of India. PaySense offer quick approvals and disbursals. 

Quick summary about PaySense:

• Minimum Age: 18 years
• Loan amount: Rs.5,000 - Rs.5,00,000
• Interest rate: 16%-36% per year
• Repayment tenure: Up to 5 years
• Added features: Fast approvals, online process

Pokket

The mPokket app offers student loans from Rs 500 to Rs 30,000, mainly targeting college students and recent graduates. The application is available to all students across the country and only a college ID and proof of address are required to apply. Otherwise, you need to provide additional documentation, including a payment receipt, bank statement, and proof of identification and residency. mPokket allows students to obtain loans quickly, with instant loans available within two minutes. The repayment period is between 61 and 120 days, with interest rates varying between 1% and 6% per month.

Quick summary about Pokket:

• Loan amount: ₹500 - ₹20,000
• Interest rate: 1% per month onwards
• Repayment time: Up to 4 months
• Extra features: Quick approval with just college ID and proof of address

Pocketly

Pocketly offers loans up to Rs 50,000. The interest rates range from 1% to 3% per month depending on the loan amounts. It also provides several features such as top-up loans, credit building, rising credit limits, and others. 

Quick summary about Pocketly:

• Minimum Age: 18 years
• Loan amount: ₹500 - ₹10,000
• Interest rate: 12% per year onwards
• Repayment time: Up to 3 months
• Extra features: No collateral or co-signer is required

Conclusion

Loan apps can be used if the student needs urgent form of credit. Since a student requires a lot of assistance with respect to finances, they could use such apps from time to time.

Students should check the website of the Reserve Bank of India for a list of companies that are regulated by it and approved for services such as offering loans in the country. This list is also updated regularly, so they must ensure that even the entities listed above are part of the RBI list.

A personal loan is an ideal alternative for borrowers who don’t want student loans. Compared to a normal student loan, a personal loan is simpler to apply for and gives more flexibility in terms of usage and repayment.

IIFL Finance is authorized by the Reserve Bank of India and follows a completely online process to approve personal loans. The application can be completed on its website within minutes. After verification of the application form and supporting documents for personal loan, IIFL Finance transfers the money directly into the borrower’s account within 24 hours.

FAQs

Q1. Which app is safe for student loan?

Ans. Choosing the right app for a student loan is crucial. It's essential to select a platform that is not only safe but also offers terms and conditions that suit your needs. Many students in India have found PaySense to be a reliable choice.

Q2. How to get 30000 rupees immediately for students?

Ans. Online loans can be a quick solution if you are seeking Rs.30,000 immediately. Many lenders offer instant approval and disbursement for amounts as low as Rs. 5,000. Just make sure to compare interest rates, repayment terms, and hidden charges before signing on the dotted line. Remember, borrowing responsibly is key.

Q3. Can an 18-year-old apply for a loan?

Ans. Absolutely! Because that’s the age when a student is seeking out avenues to pursue further studies. Hence, many student loan apps cater to 18-year-olds. Recognizing the financial challenges faced by young adults starting college, several lenders offer loan options specifically designed for students. However, eligibility criteria can vary between lenders. It's essential to check the specific age requirements of each app before applying.

Q4. What is the interest rate on student loan apps?

Ans. The interest rates on loan apps differ from one app to another. It depends on multiple factors, such as the terms and conditions that have been set by the lender, the tenure of repayment and the loan amount. 

Q5. Can I get a student personal loan without a PAN card?

Ans. Yes, you can. In fact many of these loan apps have been designed specifically for those who do not have a PAN card. It’s best to check the terms and conditions in such cases as these apps are typically meant for smaller amounts and come along with higher interest rates. 

Q6. What documents are needed to apply for a student loan?

Ans. While many lenders advertise quick and easy loans, it's important to remember that there are still requirements to fulfill. Even if you can apply online and get instant approval, you'll typically need to verify your identity and financial information through documents and a KYC process.