Students who are from middle-class or lower-middle-class backgrounds are in desperate need of money to fulfil their basic college requirements like fees, books, accommodation, food, and other extracurricular activities.
For students who are from a well-off family background, their parents are good enough to pay for their expenses. However, students from the middle class or lower middle class have no choice but to apply for a student loan.
You all know banks don’t loan students so easily because they are not yet working full time to have enough money.
However, with student personal loan apps, it is easier for students to get the money required for their college and other expenses. Student loan apps allow students to apply for a loan online and get money transferred to their bank account immediately.
Benefits of Student Loan Apps
- Easy Access to Money: A digital platform where you can apply for a loan from the comfort of your home.
- Hassle-Free Processing and Bank Transfer: Loan processing time is very short, allowing you to receive money quickly into your bank account.
- Simple Application Process: It is very easy to fill out an online application form with fewer documents and easy to track loan application progress.
- Flexible Loan Amounts: You get both a small amount for study material and a large amount to pay college and tuition fees.
- Customized Loan Repayment Options: Repay the loans as per your financial situation. You can defer payments till your graduation.
- Financial Inclusion: Student loan app allows students from rural India to become part of the financial system.
A Word of Caution for Students Before Using a Student Loan App
Before you apply for a loan, keep the following things in mind.
- The loan amount will be transferred to your bank account.
- Interest Rate = Principal Amount X Tenure/365 X APR(annual percentage rate)
- A high Tenure of loan means higher interest rates.
- You can repay in EMIs.
- CIBIL Score is very important. A higher score means lower interest rates and a lower score means higher interest rates.
- You will receive the final loan amount after processing the fee deduction.
- Lenders may call, SMS or WhatsApp you for timely loan repayment.
The following are the ten best loan apps for students.
10 Best Student Loan Apps for Quick Financing
1. mPokket
mPocket has 7 million customers and 7 million downloads. It is one of the most trusted student loan apps right now.
Eligibility Criteria: Students above 18 years, a college degree, a bank account
Loan Amount: Rs 500/- to Rs 30,000/-
Interest Rate: 1% to 6% per month, Based on Loan Amount
Loan Term: 2 Months to 4 Months
Processing Fee: Between Rs 34/- to Rs 203/- + 18% GST
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
2. KreditBee
KreditBee approves your loan in just 15 minutes. It has the shortest approval time compared to other apps. KreditBee has 7 million customers, 50 million app downloads and 8.5 million active users. Until now, they have loaned Rs 30,000 Crore.
Eligibility Criteria: Age above 21 years, enrolled in college, a bank account
Loan Amount: From Rs 1000/- Maximum Rs 3 Lacs
Interest Rate: 0% to 29.95%
Loan Term: 2 months to 15 months
Processing Fee: Maximum 3% annually
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
3. Pocketly
What makes Pocketly special is you can close the loan anytime, and if you don’t have enough funds to pay interest, then just pay the minimum due EMI.
Eligibility Criteria: Above 18 years, a college degree, a bank account or Paytm Wallet
Loan Amount: Rs 500/- to Rs 30,000/-
Interest Rate: 1% to 4%, APR 12% to 48%
Loan Term: 2 to 4 Months
Processing Fee: Rs 50/- to Rs 200/- + GST.
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
4. Krazy Bee
Hassle-free and instant disbursal in just 10 minutes.
Eligibility Criteria: Above 21 years, a college student, a bank account
Loan Amount: Rs 1000/- to Rs 10,000/- (for students)
Interest Rate: 12.25% to 30% per month for flexi personal loans.
Loan Term: 3 Months to 24 Months
Processing Fee: 6% + GST charges, Late Payment Rs 10/-
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
5. RedCarpet
RedCarpet offers student loans at an affordable interest rate.
Eligibility Criteria: Above 18 years, a college student, a bank account
Loan Amount: Rs 500/- to Rs 60,000/-
Interest Rate: Maximum 29.95% per annum, 2.49% monthly
Loan Term: 3 months to 3 years
Processing Fee: 0% to 3%,
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
6. StuCred
StuCred is one of the most trusted loan apps for students in India. StuCred Credit limit can increase or decrease based on your loan repayment performance.
Eligibility Criteria: Above 18 years, a college student, a bank account
Loan Amount: Rs 1000/- to Rs 15,000/-
Interest Rate: 0%, APR 72%
Loan Term: 2 to 3 Months
Processing Fee: 6% per month, all-inclusive.
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
Just keep in mind that the 0% interest rate is just for namesake because the processing fee is very high.
7. Eduvanz
Eduvanz is one of the most trusted loan apps for students in India. Eduvanz offers loans for both schools as well as college students.
Eligibility Criteria: Above 18 years, a college student, a bank account
Loan Amount: Maximum Loan Amount Could be Up to Rs 200,000/- and Rs 1000,000/- for college
Interest Rate: Applicable Interest Rates Start from 7.99% per annum.
Loan Term: Maximum tenure can be 60 months.
Processing Fee: Up to 2% + Taxes
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
Delayed payment is going to attract late payment fees and penal charges.
8. Slice Borrow
Slice Borrow offers loans at a modest interest rate compared to other student loan apps.
Eligibility Criteria: Above 18 years, a college student, a bank account
Loan Amount: Up to Rs 500,000/-
Interest Rate: 0% if paid within a month
Loan Term: 1 Year
Processing Fee: 3%
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
Penalty charges are very high if you default.
9. Cash Bean
Get an instant loan without any credit history from Cash Bean.
Eligibility Criteria: Above 18 years, a college student, a bank account
Loan Amount: Rs 1000/- to Rs 60,000/-
Interest Rate: 0% to 25.55% per annum
Loan Term: 3 Months to 6 Months
Processing Fee: Rs 20/- to Rs 2000/- + 18% GST, one time charge
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
10. Bada Bro
BadaBro offers loans for both students and working professionals.
Eligibility Criteria: Above 18 years, a college student, a bank account
Loan Amount: Rs 500/- to Rs 100,000/-
Interest Rate: 1% to 6% per month
Loan Term: 2 Months to 3 Months
Processing Fee: Rs 34/- to Rs 203/- + 18% GST
Documents Required: College ID, Aadhaar Card, Voter ID, Passport, PAN Card
Conclusion:
These were the 10 Best Student Loan Apps for Quick Financing in India. I will request you, before applying for a loan, to talk to their customer support and find out every small detail, especially interest rate, procession fee and other hidden charges.
