With the increments in school fees, Indian students that can’t afford to pay for tuition and other fees are seeking financial aid from loan institutions and loan apps. This has made loan apps common in India as some students can merely afford to pay for school fees without having to seek assistance from loan apps.
If you are here to know about the best loan app in terms of reasonable Interest rate, long repayment date and high loan allocations, you are in the right place. My team and I have written this content to purposely enlighten you and give you more about the various student loan apps in India and how to apply.
We have explained the meaning of Loan apps in one of our recent contents. but in Case you missed it, loan apps are mobile apps that grants its user the option to borrow loan. There are various loan apps which you can seek loans from , however their interest rate and repayment date depends on the one you are using.
Although banks do lend people money, the difference between loan apps and banks is that banks offer larger amounts and also need you to fill a form, But loan apps don’t even require you to appear physically before they lend you money. The downside to loan apps is that their loan disbursement is usually lower than banks.
Student Loan Apps In India
There are various types of student loan apps you can register for in India. Some of the most popular and trusted options include:
Mpokket ranks among the best loan apps in India. This app offers loan of up to Rs. 20,000 and their repayment period is 3 to 6 months. If you request a loan from mpokket, the interest rate you will pay is 1% per month.
The second loan app on our list is Pocketly. Unlike mpokket , pocketly only grants a maximum loan amount of Rs.50,000. However their loan repayment period is 3 to 12 months. And you will also be required to pay an interest rate of 1% per month.
Unlike other loan apps, KrazyBee doesn’t actually give money, they rather give students the opportunity to buy products and services online and will be required to pay monthly. Naturally The amount you will pay depends on the product or service you purchased. Their interest rate starts at 1% per month.
The next loan app on our list is KreditBee. They also give loans of up to Rs. 50,000 to students and it needs to be paid within a period of 3 to 36 months. Their interest rate starts at 1% per month.
Sahukar doesn’t necessarily lend money to students, they rather connect students with people that are willing to lend students money The maximum amount you can borrow depends on the amount the lender wills.The same goes with interest rate and repayment date.
Benefits Of Using Student Loan Apps
There are several benefits of using student loan apps instead of requesting loan from banks, some of these benefits includes:
- Fast and easy application process: Unlike banks, you can apply and receive a loan in minutes. The app is also understandable and easy to use. After your application process has been completed, your funds will be deposited into your account within 24 hours.
- Less eligibility requirements: Although Bank loan requirements can be frustrating, Student loan apps don’t really give enormous eligibility requirements, which is why most students prefer loan apps than traditional banks.
- Smaller loan amounts: Student loan apps typically offer smaller loan amounts than traditional banks, which can be a better fit for students who need a short-term loan to cover unexpected expenses.
- Convenient: You can apply for and manage your loan through the app, which is convenient and easy to use
Things To Consider When Choosing A Student Loan App
My team and I have prepared this section purposely to hint you on things you need to evaluate and consider before choosing a student loan app. here are some details:
- First thing you should consider is the amount of the loan you need, and to know whether it will be able to settle your bills or not.
- Secondly you need to check the repayment period So as to know whether you will be able to meet up or not.
- The third thing to consider is the loan app interest rate, you need to check the interest rate and determine whether you are okay with it or not.
- Fourthly you need to make findings about the Fees. Make research to know whether there is any fee or no fee associated with the loan.
- This is the most crucial part of a loan. You need to read and understand the terms and conditions as they contain nearly all the information you need to know about a loan app.
India Student loan apps have proven to be helpful to students looking to pay their school fees, they have really improved the financial stability of students in India. However, it is crucial and very important to compare the various loan apps available in India by reading their terms and conditions, interest rates before taking out a loan.