Top 10 student loan apps in India 2023
In India, there are several widely used lending applications. However, you are not eligible for a loan from them if you are a student. Students do not yet perform full-time in order to have enough money, and in India, youths are especially dependent on their parents until they begin working. Students could run out of money while trying to pay for additional expenses, and they might need money to buy books, enter competitions, etc.
Student personal loan applications make it easier for students to get the money they need to pay for college. You can apply for a loan online using these student loan applications, and the money will be sent right to your bank account.
A student loan
Student loans in the US assist students in covering the cost of college tuition, books, and supplies. If you apply for financial help, your aid package will probably include student loans. It’s crucial to comprehend the type of loan you’ll get. Federal and private student loans can often be divided into two categories.
Always try to get scholarships and grants before taking out student loans. If you need money for college or career school, it is best to start your search for student loans from the federal government.
This lesson should carefully review the multiple effects of taking on debt to pay for your education. You shouldn’t let taking part in this financial literacy training deter you from taking on debt to follow your aspirations. Its purpose is to assist you in collecting the necessary financial knowledge to successfully manage your debt and make wise financial decisions.
Every student has access to federal student aid.
For more details on student loans, visit the U.S. Federal Student Aid website. Beyond the specifics of applying for student loans to pay for your education, this module will also deliver other information.
Federal loans are provided by the federal government. Compared to federal loans, private loans do not have many advantages. They generally deliver interest rates that are lower and more flexible payback arrangements than banks or other private financial institutions. Additionally, there are no co-signer or credit check requirements for federal loans. (Direct PLUS Loans are not included.) Repayment on federal loans doesn’t begin until you graduate, leave college, or stop attending classes.
Private loans are governed by the conditions set forth by the financial institution allocating the loan. It is urged that you read the terms of your loan in full and decide whether you can pay off the interest segment of your loan while attending school to avoid having your loan experience exponential growth during your college years.
Indian activists voiced worry that the Indian Nation Loan Scholarship Scheme, which ran starting in 1963, would generate more waste due to the point that it was “limited.” It signifies that only individuals who legitimately need a student loan to advance their studies will be approved. Therefore, most Indian students would pick their employment more carefully in order to pay off their debt.
Five banks have integrated their systems with Vidya Lakshmi, an Indian government platform for students looking for educational loans, including SBI, IDBI Bank, and Bank of India. On Independence Day, August 15, 2015, Vidya Lakshmi was unveiled to assist students in looking for student loans.
Three government agencies from India—the Ministry of Financial Services, the Ministry of Higher Education, and the Indian Banks Association—were involved in the execution of Vidya Lakshmi (IBA). As part of the Pradhan Mantri Vidya Lakshmi Karyakram, Shri Arun Jaitley announced the construction of the Vidya Lakshmi Portal in his budget speech for FY 2015–16. As of August 15, 2020, Vidya Lakshmi Portal has 37 banks and delivers 137 loan programs.
In order to lessen the burden of rising institutional fees, NSDL e-Governance in India created the Vidyasaarathi platform for students looking for scholarships to study in India or abroad.
Benefits and Features of Student Loans
Anyone who is a student or has a source of income can easily apply for a loan online. To swiftly get a student loan, a student operating a personal loan app for students must be older than 18 and have a valid college ID card.
Some lenders might let you refinance, amend, or extend your loan. If you repay these loans on time, you could be able to get more credit in the future.
The money arises in your wallet or bank account right away.
What Should We Look For When Applying For Student Loans?
An excellent higher education can help provide the groundwork for responsible work and a higher wage. But because of the steep rise in expenditures, a sizeable segment of our population cannot afford higher education. As a result, other methods of financing higher education have been superseded by acquiring student loans from banks and NBFCs. Consider these things before applying for a student loan:
In addition to the cost of the course, your education loan should be large enough to pay the major expenses, such as the price of a laptop, supplies, and books. The maximum loan amounts for local and overseas courses are Rs. 10 lakh and Rs. 20 lakh, respectively. However, lenders might decide to bigger loans for courses delivered by esteemed institutions like IIMs, IITs, ISB, etc. As a result, you should compare the loan amounts delivered for your course by as multiple lenders as you can.
Lenders often grant borrowers a one-year moratorium period in addition to the course time period, during which time they are exempt from paying EMI payments. The debtors have a 15-year payback period starting from the time they start making their EMI payments. However, the interest calculation begins as soon as the loan is disbursed, and the cumulative interest is added to your principal. If the borrower is unable to complete the course by the deadline or plans to start his own firm, the lender may extend the moratorium term by a further two years.
Rate of Interest: Interest rates for student loans normally start at around 6.75% annually, depending on the course, the institution, initial educational accomplishment, the applicant’s or co-credit applicant’s score, and the security proposed. Simple interest rates are charged by lenders during the moratorium period, and compound interest rates are charged once the EMI installments have been initiated. Be informed that some lenders may also deliver up to 1% in additional interest discounts on the loan’s interest portion during the moratorium. Therefore, borrowers should make an effort to pay the simple interest that has accrued during the moratorium period in order to reduce their overall interest expenditure.
Lenders frequently require borrowers to pay a portion of their educational costs out of pocket. This is regarded as “margin money.” However, for student loans up to Rs 4 lakh, there is no requirement for a margin deposit. Margin deposits of 5% and 15% are needed for domestic and overseas courses, respectively, for loans exceeding Rs 4 lakh. For courses taken at famous colleges, certain lenders, including SBI, do not need margin money.
College and Banks/NBFC Partnership:
Several educational institutions collaborate with banks and NBFCs to set up education loans for their students. In order to find out if there are any recent arrangements for education loans with banks or NBFCs, those who are interested in attending higher education may contact their institution/university. These collaborations could facilitate getting student loans with lower interest rates and speed up the loan application process.
Students who plan to use loans to pay for their higher education should carefully review the average wage and placement history of their eligible universities. They might make use of this data to roughly project their monthly income and correctly determine their EMI and loan terms. Borrowers should refrain from implementing an aggressive repayment plan in order to retain their credit score and future loan eligibility. It will be detrimental if there are any EMI defaults brought on by unemployment or lower-than-expected earnings. Borrowers who return their student loans later never incur a prepayment penalty.
Anyone who takes out student loans for themselves, their children, their spouses, or minor children under guardianship is eligible to claim tax deductions under Section 80E of the Income Tax Act. This deduction, which is allowed on the interest component of the loan, has no upper limit. The deduction is only applicable for eight years beginning on the day EMIs began. Borrowers should make an effort to pay off their loans within 8 years in order to maximize tax benefits.
Top 10 student loan apps in India 2023
The finest choice is mPokket if you need a student loan in India right now. Loans are proposed in amounts ranging from 500 to 20,000 rupees. The most benefit from mPokket is received by college students and recent graduates. All learners in the country have access to this program. All you need to apply for a loan with mPokket is a fair college ID and evidence of residency. Young professionals must provide a bank statement, a payment receipt, and verification of identity and address.
Characteristics of mPokket
- Using this program, students can swiftly obtain loans. In India, instant loans can be acquired in as little as two minutes for amounts between 500 and 30,000 rupees.
- You have 61 to 120 days to pay it back.
- The interest rate fluctuates between 1% and 6% each month.
- The processing charge is between 34 and 203 rupees plus GST (18%).
Another useful tool for rapid student loans is KreditBee. Up to 29.5%, a year in interest is charged on loans up to Rs. 300,000. You are eligible to apply for one of these loans if you are between the ages of 21 and 56. They also deliver a digital application form that may be filled out. For the loan to be accepted, you must upload each piece of supporting documentation through the app.
The Benefits Of KreditBee
- It is possible to borrow from 100 to 3,000 rupees.
- The time period is from 62 days – 15 months.
- The annual range of interest rates is 0% to 29.95%.
- Processing expenses could range from 0% to 7%.
KrazyBee, one of the most well-liked student loan websites in India, encourages college students in a few regions of the country to make any type of online purchase with a flexible monthly payment plan. Any person who is at least 18 years old and registered at one of the institutions suggested by KrazyBee may make a purchase. KrazyBee is another exceptional student loan app in India. The cost of a loan for a college student can vary from Rs. 1,000 to Rs. 10,000.
Characteristics of KrazyBee
- Mumbai, Hyderabad, Bangalore, Pune, Mysore, and Vellore all have KrazyBee headquarters.
- With this loan for students in India app, you may either browse the KrazyBee product catalog on your browser or app and order the item just like you would with any other eCommerce store, OR you can browse your choice eCommerce store and use it to make purchases from KrazyBee’s website.
- The maximum amount to spend each month is Rs. 2,000.
The Sahukar app is perfect for students looking for affordable loans up to $5,000. They charge a 3% monthly interest rate on the borrowing amount. To qualify, you must be at least 18 years old and have a legitimate student ID from a college or institution. In a day, the loan is processed. One to three months following the payback date, you have the option of repaying the debt.
An urgent loan of between Rs. 100 and Rs. 5000 is available to students.
One to three months can be the timeframe.
5. Slice Pay
Students can borrow money via SlicePay with no-cost EMIs. They do this with the help of MasterCard. When you download the app, you must submit your name, the college you attend, your ID card number, and information about your Aadhar and PAN. Students enrolled in undergraduate and graduate programs may borrow up to Rs. 10,000 using SlicePay.
The terms of their loans range from 30 to 90 days. Additionally, SlicePay has a 3% monthly interest fee. The Unified Payments Interface will instantly transmit the funds to your bank account.
Characteristics Of Slice Pay
- Users of the student loan app from SlicePay India can borrow between 2,000 and 10 lakhs of rupees.
- Spreading payments out over three months is not charged.
- You might obtain up to 2% cashback with your Slice card on each purchase.
- Additionally, you can rapidly transfer money from your Slice card to your Paytm or bank accounts.
6. Cash Bean
This is one of the best applications for students looking for loans. The Cash Bean app allows you to borrow up to Rs 60,000 at interest rates as high as 33% per year and a processing fee of 18%. CashBean is produced by P & C Financial Services Private Limited, a company recognized by the RBI. As a result, it is a reliable source. When applying for a loan, there is no necessity for a credit history, and the process is entirely digital and paperless. You must be between the ages of 21 and 56 and a resident of India with a stable source of income in order to be eligible for a loan.
Characteristics of CashBean’s
- This rapid loan-for-students app delivers loan sums ranging from Rs. 1,500 to Rs.
- 60,000 with a three- to six-month return period.
- The daily interest rate is 0.07 percent at the time.
- The initial processing charge is between Rs 90 and Rs 2,000 plus GST (18%).
7. Red Carpet
Most people would advise them to contact their parents for help and to speak with their friends and coworkers to see if they can help them out financially. But when they don’t acquire the money they need, people repeatedly get enraged. RedCarpet Loan makes it possible to acquire a personal loan with a higher credit limit using an ATM or debit card, assuring that no student or self-supporting person is prevented from taking advantage of a prospect by a lack of funds.
Characteristics of RedCarpet
- The application asks for a credit line rather than a single lump sum payment for the loan.
- The Ruby card can only be acquired by people who have taken out a personal loan from the company. The money is allocated under the loan portion, much like a debit card.
- Using this debit card, you can make withdrawals of up to $1,000 without bearing any additional expenses.
- The corporation’s RedCarpet app features a spending tracker. Due to this, it is simple to keep an eye on your spending, analyze it, and access your entire card account throughout the year.
BadaBro is one of the most popular quick loan applications for students in India. It was created by a company that catered to working professionals and college students. Because BadaBro delivers rapid loans right away and transfers the money into your bank account, more than 100,000 people use it. To register and complete your profile, you will need your Aadhaar, PAN, job ID (if applicable), and other pertinent data. You can get the loan amount after your credit report has been reviewed because the entire process is done online.
Characteristics of BadaBro
- BadaBro will swiftly repay your PayPal or bank account after receiving your online appeal.
- By recommending BadaBro to your friends, you could receive prizes.
- Upload your PAN or Aadhaar, input your employee ID, or fill out a few brief spaces to finalize developing your profile.
- Credit limitations and online profile authorization are provided.
The company Pocketly is renowned for delivering the quickest student loans. They charge interest rates ranging from 1% to 3% per month (12-36% annually), depending on the loan’s size and term. Students may borrow up to Rs. 50,000 through Pocketly. Users of Android mobile devices can access it through Google Play. To pay your monthly obligations on time and regularly, you can also apply for top-up loans. The funds will be transferred to your Paytm wallet, bank account, or standard bank account.
Characteristics of Pocketly
- If you pay your bills on time, your credit limit will increase.
- Upload supporting documentation for KYC, underwriting, and user verification.
- Develop credit.
- From 500 to 10,000.
- Loan restructuring, loan extension, and loan refinancing.
StuCred is fully aware of the challenges faced by college students. To make financial independence a reality for everyone, StuCred promises to leverage sustainability and the availability of quick loans for students.
Characteristics of StuCred
- With this tool, you can upload secure papers to be quickly examined.
- Indian students can get quick cash with StuCreds Student Loans, which have an interest rate of 0%.
- Thanks to the app, the entire process is simple and quick.
- While you’re still in school, you can start using StuCred to raise your credit score.
- Your life will be vastly affected by this big financial score.
How can you Apply For A Loan Right Away?
The most popular way to apply for fast loans is online. To acquire your PAN, you must connect to the website of your lender and provide your name, cellphone number, and PAN number. Your loan will be authorized in a matter of minutes, and you’ll have the money right away. These loans can be useful if you are in a tight spot and need money right away.
- Documents Necessary
Your PAN card merely requires it to be in digital form. Some applications demand Aadhaar authentication, but that’s it! There is no need to fill out application forms, and there is no need to provide pictures, ID proofs, address proofs, or pay stubs.
- Eligibility requirements
When you apply for one of these loans, your credit score and monthly wage are generally taken into account. Other severe restrictions are not present.
Things to keep in mind
- When immediate cash is needed, instant loans are useful.
- There is a 30-day to 12-month repayment period available.
- Beginning at 1% per month, the interest rate grows per month.
- The processing costs are astronomically expensive; they amount to about 2.5% of the loan amount.
The most popular quick loan applications for Indian college and high school students in 2023 are listed below (app for student loans) Through the aforementioned loan apps, instant personal loans are accessible within a few hours.
Edited by Prakriti Arora