Best loan app for students in india – 2024

• Loan App: A loan app is a mobile tool that allows you to apply for a loan online without having to go to a traditional bank. These apps ease the loan process, allowing consumers to apply for and manage loans directly from the mobile app.

Best loan app for students in india

If you’re a student in India looking for instant loan apps, there are several options available to help you manage your financial requirements. Here are some of the best loan app for students in india 2024 based on various factors:

1. mPokket: mPokket is an instant personal loan app that caters to students. It promises quick loan disbursement into your bank account within 15-20 minutes after application. The eligibility criteria include being an Indian citizen with a monthly income source. The loan amount ranges from ₹1,300 to ₹50,000, and the tenure varies from 3 to 10 months.
2. PaySense: PaySense offers personal loans to students. While it’s not exclusively for students, it provides quick access to funds. The loan amount and tenure depend on individual eligibility and requirements.
3. Pocketly: Pocketly is another option for students seeking instant loans. The app provides loans based on eligibility criteria and offers flexible repayment options. it is also a best loan app for students in india 2024.
4. KreditBee: KreditBee is an instant personal loan app that disburses loans into your bank account within 5 minutes. It offers different loan types, including a “Flexi Personal Loan” suitable for students in the mid/last stages of graduation or those opting for higher education.
5. CASHe: CASHe provides personal loans to salaried professionals, but students may also be eligible based on their income and creditworthiness. The loan amount and terms vary depending on individual profiles.

What are the interest rates for these loans?

Interest rates for student loans can vary based on the loan app, the loan amount, and the repayment tenure. Keep in mind that these rates are subject to change, so it’s essential to check the latest information directly from the loan app or lender. Here’s a general overview:

1. mPokket: mPokket typically offers interest rates ranging from 3% to 5% per month. The exact rate depends on various factors like your creditworthiness and repayment history.
2. KreditBee: KreditBee’s interest rates start at around 2% per month. However, the actual rate may vary based on your profile and loan amount.
3. SlicePay: SlicePay’s interest rates are usually around 2% to 2.5% per month. Remember to check their terms and conditions for precise details.
4. PaySense: PaySense’s interest rates can range from 1.4% to 2.3% per month. Verify the current rates before applying.
5. Pocketly: Pocketly’s interest rates are typically around 2% to 3% per month. Always confirm the latest rates from their platform.

Remember that these rates are monthly rates, so if you want to calculate the annual interest rate (APR), you can use the following formula:
APR=(1+100monthly interest rate​)12−1
For example, if the monthly interest rate is 2%, the annual interest rate (APR) would be approximately 26.82%.

What are the eligibility criteria for these loan apps?

Eligibility criteria for student loan apps can vary slightly from one app to another, but here are some common requirements:

1. Age: Most loan apps require you to be at least 18 years old. Some may demand a higher age.
2. Student Status: You must be a student pursuing higher education. This includes undergraduate, postgraduate, or diploma courses.
3. Institution: You need to be enrolled in a recognized educational institution (college, university, or vocational course).
4. Citizenship: You should be an Indian citizen. Some apps may also accept foreign students studying in India.
5. Minimum Marks: Some apps may have a minimum academic performance requirement (such as a minimum percentage or CGPA).
6. Bank Account: You’ll need an active bank account. Most loan apps transfer funds directly to your account.
7. KYC Documents: You’ll have to submit valid Know Your Customer (KYC) documents, including Aadhaar card, PAN card, and address proof.
8. Credit Score: While some apps don’t consider credit scores, having a good credit score can improve your chances of approval.
9. Income Source: Some apps may ask about your income source (part-time job, family support, etc.).
10. Repayment Capacity: Loan apps assess your repayment capacity based on your income and expenses.

Are there any government-backed student loan schemes in India?

India has several government-backed student loan schemes to support higher education. Here are some notable ones:

1. Pradhan Mantri Vidya Lakshmi Karyakram:
   • This initiative aims to enable all poor and middle-class students to pursue higher education without financial constraints.
   • The Vidya Lakshmi Portal provides a single-window electronic platform for students to access information and apply for educational loans and government scholarships.
   • Students can fill out the Common Education Loan Application Form (CELAF) on the portal and apply for loans from multiple banks/schemes.
   • Currently, 39 banks have registered 70 educational loan schemes on the Vidya Lakshmi Portal.
2. Central Sector Interest Subsidy Scheme (CSIS):
   • This scheme is a key initiative of the Ministry of Education, Government of India.
   • It provides interest subsidy during the moratorium period (course duration plus one year) for economically weaker students.
   • The subsidy is available for loans up to ₹7.5 lakhs for professional and technical courses.
3. Credit Guarantee Fund Scheme for Education Loans (CGFSEL):
   • Another government initiative, this scheme aims to provide credit guarantee to banks for educational loans.
   • It encourages banks to provide loans to students without requiring collateral or third-party guarantees.
   • The guarantee covers up to 75% of the loan amount for eligible students.

How do I apply for these loans?

Applying for loans through these apps is relatively straightforward. Here are the basic steps you can follow:

1. Download the App: First, download the loan app you’re interested in from the Google Play Store or Apple App Store.
2. Registration and Sign-Up:
   • Open the app and sign up using your mobile number or email address.
   • Complete the registration process by verifying your details.
3. Profile Setup:
   • Fill in your personal information, including your name, date of birth, and address.
   • Set up your profile by providing necessary details like your educational institution, course, and year of study.
4. KYC Verification:
   • Upload the required Know Your Customer (KYC) documents. These typically include your Aadhaar card, PAN card, and address proof.
   • The app will verify your documents. This process may take a few hours to a day.
5. Loan Application:
   • Once your profile is set up and verified, navigate to the loan application section.
   • Specify the loan amount you need and the repayment tenure.
6. Eligibility Check:
   • The app will assess your eligibility based on the information you provided during registration.
   • It considers factors like your student status, academic performance, and repayment capacity.
7. Loan Approval:
   • If you meet the eligibility criteria, your loan application will be approved.
   • You’ll receive a notification regarding the loan approval status.
8. Accept Loan Offer:
   • If approved, review the loan terms, interest rates, and repayment schedule.
   • Accept the loan offer if it aligns with your requirements.
9. Loan Disbursement:
   • Once you accept the offer, the loan amount will be disbursed directly to your registered bank account.
   • The disbursement process is usually quick.
10. Repayment:
    • Repay the loan as per the agreed-upon schedule.
    • Most apps allow you to make payments through the app itself.

Conclusion:

it is crucial for students to stay informed about the best options available to meet their financial needs. By understanding the importance of financial assistance, identifying key features of loan apps, comparing different options, implementing effective loan management strategies, and staying updated on future trends, students can make informed decisions regarding their financial future.

FAQs:

Is personal loan app safe for student ?

Yes it is safe but problem is they charge interest high for 15 days .incase of delay in payment they will call all your close relatives as they will have access to your contacts. apps provided by lenders registered with the RBI are safe to use.These apps are perfectly safe, have high-end encryption to protect your data, and are much quicker in application and processing.Beware of fraudulent apps. There are many illegitimate apps on the app store and play store.

How can students avoid falling into debt traps with loan apps?

By carefully reading terms and conditions, borrowing only what is necessary, and seeking financial advice if needed, students can manage their loans responsibly and avoid debt traps.