25 February, 2025 | 11:00 IST
Getting an instant loan as a student could be a challenging task. Lenders typically require proof of income or a steady financial source to assess a borrower’s repayment capacity. While students often apply for loans to fund higher studies or education abroad, availing a loan without income could be a tough task. Further, there may be some expenses that an educational loan will typically not cover, which may create a need for an additional loan.
Several banks and non-banking financial companies are offer personal loans to meet various financial needs. These loans often have flexible terms, allowing applicants to access funding whenever required.
Additionally, the Government offers several schemes to assist students financially.
Moneycontrol has partnered with eight top lenders to offer seamless, 100% digital loans up to ₹50 lakhs. The application process is easy: share your details, complete the KYC verification, and select your EMI options. The interest rates for the loans start at as low as 10.5% per annum.
Here are different ways in which unemployed students can access the funds they need without the burden of high-interest debt or complicated approval processes.
Table of Contents
Various banks offer student loans. Axis Bank, HDFC Bank, State Bank of India (SBI), and ICICI Bank are some of the major banks that provide loans to unemployed students if they have a co-signer or guarantor. The co-signer will act as a guarantor for the loan, making the loan less risky for the bank.
The interest rates on student loans are generally lower than those of personal loans or credit cards. There are a few banks that also provide a grace period for students, like repayment of loans after securing a job. The tenure of repayment ranges from 5 to 15 years, giving students enough time to repay without any pressure.
Several Fintech companies allow applicants to avail loans at lower and more flexible interest rates. The best part of these instant loans is that the lenders require minimal documentation and eliminate the need to go to bank branches. Each lender has its maximum loan limit, ranging from ₹10,000 to ₹5,00,000 depending on the type of loan required.
The process to apply for an instant loan is hassle-free and can simply be done directly from a smartphone. One needs to download the app, complete a registration process, and submit basic personal information, such as their Aadhaar number, PAN, and proof of income. Some apps may allow students with an alternative source of income, provided they meet other eligibility criteria as well.
Since these loans are often unsecured and short-term, one must be cautious about repayments. Late repayment can lead to high penalties and affect the applicants' credit scores, making it harder to access loans in the future.
Peer-to-peer (P2P) lending platforms are a relatively new but widely used option in India. These platforms eliminate the need for traditional banks or other financial institutions by enabling users to lend money directly to borrowers.
These platforms offer loans based on the borrower's requirements and financial situation. However, given the increased risk associated with lending to someone without a steady income, the interest rates may be greater than those provided by traditional banks. Additionally, the loan amount could be relatively lower.
If you are looking for a personal loan you can explore multiple loan offers through the Moneycontrol app and website. In a completely digital process, Moneycontrol offers personal loans up to Rs 50 lakhs in partnership with eight lenders. The process is simple and fast, involving just three steps: entering your information, completing the KYC procedure, and selecting the EMI tenure. The interest rates start at 10.5% per annum.
The government also offers various schemes to help students pursue their education, even if they do not have a regular source of income. Government loans for the students are easier to obtain and have more flexible repayment options.
The central government also offers a guarantee for the education loans availed by students without any collateral security and third-party guarantor for a maximum loan limit of Rs 7.5 Lakh. The government has also launched the PM-Vidyalaxmi scheme to financially support meritorious students for higher education. Under the scheme, the students can apply for loans up to Rs 10 lakhs in a completely digital process. The loan is offered to students with a family income of Rs 8 lakh per annum. The interest rates generally start at around 8.5% per annum.
To conclude, availing a personal loan for students' educational purpose is not difficult these days with the host of digital lending platforms, bank loan options and government educational loan schemes. It’s important to evaluate various loan options as per one's financial conditions and the loan amount required.
Share it in your circle
Table of Contents
Explore Top Lenders for Instant Loan upto
Get Instant Loan up to ₹50 Lakhs with Zero Paperwork from Top Lenders
100% Digital
Quick Disbursal
Low Interest Rates
