The 5 Best Student Loan Apps in India, August 2023

The rise of student loan apps in India is a result of the growing demand for education and personal financing among students and their families. These student loan apps offer a convenient and accessible way for students to apply for loans to cover various educational expenses, including tuition fees, study materials, living expenses, and more. They serve a significant purpose in addressing the financial constraints that many students and their families face when pursuing higher education.

Purpose and Benefits of Student Loan Apps

Apps that provide loans to students have recently gained popularity due to their increasing demand. Here are some of the various reasons why students are eagerly using loan apps to avail of quick finance:

  1. Easy Access to Funds: Student loan apps provide a digital platform for students to apply for loans from the comfort of their homes. This accessibility eliminates the need for physical visits to banks or financial institutions, making the loan application process more convenient.
  2. Quick Processing: Student loan apps often promise quick processing times, allowing students to receive funds in a relatively short period. This is particularly important for students who need to pay tuition fees or cover other expenses promptly.
  3. Simplified Application: These apps typically offer a user-friendly interface, making it easier for students to fill out application forms, provide required documentation, and track the progress of their loan applications.
  4. Flexible Loan Amounts: Student loan apps may offer varying loan amounts to cater to different educational needs, whether it’s a small amount for study materials or a larger sum to cover tuition fees and other expenses.
  5. Customised Repayment Options: Many student loan apps provide flexible repayment plans that align with the borrower’s financial situation. This can include options to defer payments until after graduation or to choose repayment terms that suit their income.
  6. Paperless Process: Student loan apps often emphasise paperless processes, allowing borrowers to upload required documents digitally. This not only saves time but also contributes to environmental sustainability.
  7. Education Financing Gap: In India, the cost of education, especially for higher studies and professional courses, can be substantial. Student loan apps can help bridge the financing gap, enabling students from diverse economic backgrounds to pursue their educational aspirations.
  8. Financial Inclusion: These apps can contribute to financial inclusion by reaching students in remote areas who may not have easy access to traditional banking services. By providing loans through digital platforms, these apps extend financial opportunities to a wider demographic.

Top 5 Loan Apps for Students in India

Here is out list of the five best student loan apps in India, as of August, 2023:

1. StuCred

This app offers instant personal loans of up to ₹15,000 to students. The app charges no interest rates on the sum borrowed by students. Instead, the app levies a service charge of 6% on the loan amount every 30 days and late fees in case of failure to repay in time. 

2. Eduvanz

This app offers personal loans of up to ₹10 lakhs to students. The interest rates start at 0% per annum and go up to 36%. The repayment period is from 3 months up to 84 months. Eduvanz also offers a variety of features, such as instant approvals, no collateral required, and EMI options.

3. mPokket

This app offers instant personal loans from ₹500 to ₹30,000 to students. The interest rates start are 0-4% per month and the repayment period is from 61 to 120 days. mPokket also offers a variety of features, such as instant approvals, no collateral requirements, and minimal documentation fees.

4. CashE

This app offers instant personal loans from ₹1,000 to ₹4,00,000 to students. The interest rates start at 30.42% per annum and the repayment period starts after 3 months of borrowing. CashE also offers a variety of features, such as instant approvals, buy-now pay-later offers, and a hassle-free borrowing experience.

5. Pocketly!

Pocketly is a mobile app that provides small personal loans to students. It offers loans between ₹500 and ₹50,000 with a repayment period from 61 to 120 days. Pocketly does not require any collateral or co-signer, and the interest rates start at 24%. 

Here’s a table for quick table for comparison between so that you can choose the loan that is most ideal to you:

Feature StuCred Eduvanz mPokket Pocketly CashE
Loan amount (max.)
Repayment period (up to)
3 months
84 months
2 months
2 months
9 months
Interest rates
6% (monthly service fee)
15% - 36%
24% and up
30.42% and up
Age restrictions (min.)
18 years
18 years
18 years
21 years

Challenges and Considerations:

While student loan apps offer convenience, there are some challenges and considerations to keep in mind when borrowing from a student loan app:

  • Interest Rates and Transparency: It is crucial to be cautious about the interest rates and terms associated with these loans. Some apps may offer loans at higher interest rates, so it’s important to carefully review the terms before committing.
  • Credibility: Not all student loan apps are backed by legitimate financial institutions. Borrowers should ensure that they are dealing with reputable platforms and conduct thorough research before applying for loans.
  • Debt Management: While loans are essential for education financing, borrowers should also have a clear plan for managing their debt and repaying loans responsibly to avoid financial strain in the future.


The surge of student loan apps in India reflects the need for accessible and efficient education financing solutions. These apps aim to provide students with a hassle-free way to secure funds for their educational pursuits, making higher education more attainable for a broader range of individuals. However, borrowers should exercise caution, read terms carefully, and make informed decisions to ensure a positive borrowing experience.

Amit Arora


I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
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