Financial challenges are common in student life — whether it’s for coaching fees, college expenses, online courses, buying a laptop, hostel cost, or emergency needs. When scholarships or family support are not enough, a Personal Loan for Students becomes a smart financing option. It offers quick approval, no collateral, and flexible usage.
- What is a Student Personal Loan?
- Eligibility & Documents Required
- Interest Rates and EMI Details
- Best Banks & Loan Apps for Students
- Step-by-Step Loan Application Tutorial
- Advantages, Risks & Tips to Save Money
A student personal loan is an unsecured loan offered by banks, NBFCs and loan apps to help students meet personal or educational needs. Unlike education loans, this loan does not require collateral like property or gold.
Students can use the loan amount for:
Since most students do not have regular income, lenders usually require a co-applicant such as a parent or guardian.
| Point | Personal Loan for Students | Education Loan |
|---|---|---|
| Collateral | No | Sometimes needed |
| Processing Time | Fast (1–3 days) | Longer (1–2 weeks) |
| Usage | Flexible | Only education expenses |
| Maximum Loan Amount | ₹10,000 – ₹5 lakh | Up to ₹50 lakh |
| Interest Rate | Higher | Lower |
Eligibility Criteria for Students (Who Can Apply?)
To apply for a student loan:
Some lenders also approve loans for:
- Part-time job students
- Freelancers with valid income proof
| Student Documents | Co-Applicant Documents |
|---|---|
| Aadhaar, PAN | Aadhaar, PAN |
| Student ID / Admission Letter | Salary Slip / ITR |
| Address Proof | Bank Statement (6 months) |
| Passport-size Photos | Address Proof |
Interest rates vary across banks & loan apps based on credit score & income stability.
| Provider Type | Interest Rate | Loan Amount | Tenure |
|---|---|---|---|
| Govt. Banks | 10% – 14% | ₹25k – ₹5 lakh | 1–5 years |
| Private Banks | 12% – 20% | ₹10k – ₹5 lakh | 1–5 years |
| NBFCs / Apps | 15% – 30% | ₹5k – ₹2 lakh | 6–36 months |
Top Banks
- SBI Xpress Credit Loan
- HDFC Personal Loan
- ICICI Bank Personal Loan
- Federal Bank / Axis Bank
Trusted Loan Apps (Small loan)
- KreditBee
- Fibe (EarlySalary)
- MoneyTap
- Cashe
- Slice / PaySense
Follow these steps to apply:
Step 1: Check Eligibility
- Age & ID verification
- Co-applicant income stability
- CIBIL score of guardian
Step 2: Compare Loan Offers
Use comparison platforms like:
- PaisaBazaar
- BankBazaar
- PolicyBazaar
Step 3: Fill Online Application Form
Details required:
- Name, mobile, PAN
- Student information
- Co-borrower details
Step 4: Upload Documents
Scan: ID proof, bank statement, income proof etc.
Step 5: Verification Process
The lender will verify:
- Credit score
- Financial capacity of co-applicant
- Loan purpose
Approval time: 1–7 days
Step 6: Loan Disbursal
Loan Amount: ₹1,20,000
Interest Rate: 12% annual
Tenure: 2 Years
Approx EMI: ₹5,648 per month
Total Repayment: ₹1,35,552
Extra Paid as Interest: ₹15,552
| Benefit | Why It Matters |
|---|---|
| No collateral | No asset risk |
| Flexible usage | Any academic + personal needs |
| Fast approval | Perfect for urgent expenses |
| Online process | Simple and convenient |
| Drawback | Impact |
|---|---|
| High interest vs education loan | More EMI burden |
| Co-applicant mandatory | Dependent on parents |
| Late EMI hurts CIBIL | Future loans become difficult |
Yes, but a co-applicant with income is required.
Yes, usage is flexible.
Penalty charges + negative CIBIL of co-borrower.
Education loan is better for higher loan amount & lower interest.
Yes, if income proof like bank statement is valid.
A Personal Loan for Students is a strong financial tool for education and skill growth — but only when used responsibly. Before applying: