Top-5 Best Instant Loan Apps for College Students
Managing your personal expenses while being a college student is not easy. Whether it is paying your college fees, buying new clothes, or chilling with your friends, everything requires money.
Imagine that you are invited by a friend to attend his birthday party, but you don’t have the money to buy them a present… Now, what will you do?
You might be thinking that you will ask your other friends or family for the money, but what if it is quite hard for you to arrange that much?
Now consider another scenario in which you are away from your family, let’s say in the hostel & you need money for a college trip & you don’t feel like asking your family for it…
Well, I am here with a solution to all your money problems,…
“Instant Loans”
….Yeah, you heard it right. Instant loans can be a great way to get money in your bank account. All you need is your ID Proof & Pan Card.
In this post, I am here with the 5 best Instant Loan apps for College Students. Each of these apps has been personally tested & handpicked, so there is no need to worry about their credibility.
Before we get into the list, let us understand why instant loans?
Why Instant Loans?
The best thing about instant loans is that they are instant, which means you get your loan in a few clicks, and you don’t need to visit the bank several times in order to get approval.
A few more benefits of instant loans are:
- Saves a lot of time, as the complete process is digital.
- You don’t need a nominee or collateral.
- Easy & Faster approval.
- You can get a loan easily even without a credit history.
Things to Consider Before Applying for an Instant Loan
Before you apply for an instant loan, you should be well aware of the company from which you are taking a loan. Below is the list of factors that you should consider before applying for an instant loan:
01. RBI Registration
If you’re unsure about an app or company, the first thing you should check is its legitimacy. Search for the company’s name on Google or read user reviews to find out more about the company.
Further, Instant Loan Apps should have RBI registration in order to distribute loans. So you must check it as well.
02. Interest on Repayment
Before you apply for an instant loan, make sure to check how much interest the app charges upon repayment.
Most of the time, we have seen people apply for instant loans without checking the interest & later complain about high interest.
03. Loan Tenure
Loan Tenure simply means the duration of the loan or the repayment time. Before getting an instant loan, it’s always a good idea to have a look at the loan tenure so you don’t have to regret it later.
Also, check whether there is a late fee if you are not able to pay on time.
04. Credit Limit
Most of the time, the credit limit is decided as per the previous credit history. But most of the instant loan apps do also provide loans without any credit history.
So it is quite good to have a look at how much credit you can get exclusive of processing fees & GST.
05. Loan Processing Time
Almost all the instant loan apps process the loan within 24 hrs, but it is always a good idea to check it before applying for an instant loan.
If the loan processing time is too long, then there is no use of an instant loan app. Normal banks are a better option in this situation.
5 Best Instant Loan Apps for College Students
We have handpicked 5 of the best instant loan apps for college students in the list below. If you need an instant loan, make sure to give these apps a try.
01. mPokket
The #1 on our list is mPokket. It is an instant loan app with over 10M downloads & has an average rating of 4.2.
It provides instant loans to students as well as salaried employees. The average loan amount varies from Rs. 500 to Rs. 30,000 based on the credit history.
If you’re a student or have no credit history, then you are most likely to get Rs. 500 to 1000 at the start, but if you repay on time, your credit score will be improved & you can then get higher loans as well.
Highlights:
- Credit limit upto Rs. 30,000
- Instant Loan processing within a few minutes.
- 4 months of repayment time.
- Interest: 1 – 6% per month
Calculations:
For example, for a student or salaried personal loan of –
Loan amount – Rs 2000
Tenure – 3 Months
Interest Rate – 2%
Processing Fee – Rs 203
GST on Processing Fee – Rs 37
Total Interest – Rs 120
APR – 72%
The loan amount is Rs 2000, Disbursed amount is Rs 1760. The total loan repayment amount is Rs 2120
Source: mPokket Play Store Page
02. Pocketly
Pocketly is another instant loan application for College students. It is available on both Play Store as well as App Store.
The best thing about Pocketly is that it is quite simple to use & requires a bare minimum KYC to apply for an instant loan.
Similar to mPokket, the loan amount starts from a minimum of Rs. 500 but can up to a maximum of Rs. 10,000 only.
It also offers features like loan extension & restructuring which make it quite user-friendly.
Highlights:
- Simple to use & minimum documentation.
- Get loan upto Rs. 10,000.
- Interest: 1 to 3% per month.
- Tenure: 30 days
Calculations:
For example, if the personal loan amount is ₹1,000 & the applicable annual interest rate 36%, the amount to be repaid at the end of the tenure of 60 days would be a processing fee plus interest of ₹1,000 x 36% x 60/365 = ₹1090 —> Source: Pocketly Play Store Page
03. KreditBee
KreditBee, as its name implies, is an instant loan app that offers loans for college students, salaried employees, and self-employed individuals.
What makes it stand out among other similar apps is the fact that its interest rates are flexible and range from 0% to 29.95% per annum.
The loan is directly transferred to the bank account within 15 minutes of registration. Along with these perks, it also offers online shopping EMIs on various eCommerce marketplaces.
Highlights:
- Fast loan processing within 15 minutes.
- Offers loans for College Students as well as Salaries / Self-employed individuals.
- Loans in the form of E-vouchers.
- Interest: 0% – 2.49% per month.
- Tenure: 62 days to 15 months
- Credit Limit upto Rs. 15,000 for College Students.
04. Slice
Slice is another yet most popular app that offers loans to college students, self-employed individuals as well as salaried employees in India at zero cost EMI.
It offers credit starting from Rs. 2,000 to Rs. 10 Lakh, however, college students can only get a maximum loan of Rs. 10,000.
The applicable interest on credit is 3% per month & the tenure of the loan is similar to other apps, i.e. 1 – 3 months.
Highlights:
- 100% free card
- Upto 2% cashback on every transaction.
- Credit Limit: Rs. 10,000 for college students.
- Interest: 3% per annum.
- Tenure: 30 days – 90 days.
05. Bada Bro
Last but not the least, Bada Bro is another amazing app for instant loans. It offers loans for College students & salaried employees starting at an interest ranging from 1% to 6%.
The eligibility criteria for College students to get a loan is that:
- He / She must be at least 18 years old.
- Have Pan Card, Aadhar Card & College ID Proof.
- 6 Months Bank Statement
For all approved individuals, Bada Bro gives credit worth Rs. 1000 and as per the repayment history, the credit amount is increased.
Highlights:
- Basic Credit Limit of Rs. 1000
- It takes 24 hrs to process the loan.
- Repayment Time: 3 months.
- Interest Rate: 1 – 6%
Issues with Instant Loans: Why should you avoid them?
Being an educational blog, our job is to make sure that you won’t get half the knowledge or only the pros of something.
Like anything else, instant loans do also have some issues or drawbacks. Here are a few:
01. Low Credit Limit
Due to the fact that most college students don’t have credit histories, these apps offer lower credit limits.
At the start, you might only get a loan of Rs. 5000 – 10000, but as you repay your loans on time, your credit history gets improved & you are eligible for higher loans.
02. High Interest
Unlike banks, you won’t get personal loans at an interest of just 10 – 20%. Instant Loan Apps charge interest of up to 36%. Well, not all apps charge the same interest rates, it may vary from 12% to 36%.
03. Age Restrictions
You are eligible for instant loans only if you’re at least 18 years old & in some cases 21. Well, it depends on the app you are using. So, it is quite hard to get an instant loan if you are too young.
04. Small Tenure
If you want to repay your loan in one year or more, then it’s not the case with instant loan apps. These apps do have a very short duration of the loan, most likely 3 to 6 months.
In some cases, you may also find it only up to 15 days, which is not a good deal.
05. Lack of Credibility
These days every other company wants to start their own instant loan apps in order to get high interest on their capital. But, it’s quite hard to find an app that is trustworthy.
You can’t just give your personal information including KYC documents to any company without knowing anything about them.
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Up to You!
We have shared a complete list of the best Instant loan apps for college students that you can use without having a credit history. All the apps discussed above are safe & RBI registered as of now.
The choice is now yours – which app to use. If you are going to opt for an instant loan, make sure to pay back your bills in time. Late payments can result in additional fees & higher interest.
If you found this post informative, make sure to share it with your friends & family.