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. 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).
2. 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.
3. 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%.
4. 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.
5. 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.
6. 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.
7. 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.
8. Sahukar
Sahukar offers students with 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.
9. 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, Adhaar card, PAN card, employment ID, and other information.
10. GetItNow
GetItNow offers students tailored loan options. Its interest rates range from 0% to 36% per year based on the loan type and eligibility. Students can avail of loans of up to Rs. 10,000. However, timely repayment can make students eligible for higher loan amounts. To apply, students must submit a loan application form and provide the relevant documents.
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.
Additionally, most apps have lower interest rates and are easier to use, making them a convenient option when you need funds for your higher education. They make education more accessible for students and allow you to establish a credit history early on through repaying student debts. Quick access to funds
How to Choose the Right Loan Apps in India for Students?
Some factors to consider before choosing a loan app 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 maximise tax benefits, try to repay loans within the 8-year window.
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.
25 November 2024
5 mins read
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