Can a Student Get a Personal Loan in India ? : Comprehensive Guide 2025
Can a Student Get a Personal Loan : In 2025, students in India are increasingly seeking financial support to meet their academic, lifestyle, or career-building needs. From college fees to laptop purchases, from exam coaching to relocating for internships — all of these require a steady flow of funds. While education loans are often the traditional route, many students are now wondering: Can a student get a personal loan in India? This comprehensive guide for 2025 explores everything you need to know — eligibility, best loan options, how to apply, documents required, alternatives, and things to watch out for.
Table of Contents
If you’re a student seeking a personal loan or a parent supporting one, this detailed resource is your one-stop reference.
Understanding the Basics: What is a Personal Loan?
A personal loan is an unsecured loan that allows individuals to borrow a fixed amount of money for personal expenses such as medical emergencies, education, wedding, travel, etc. Unlike secured loans, no collateral or security is needed. Repayment is done via EMIs over a fixed period, usually ranging from 6 months to 5 years.
The biggest advantage of a personal loan is its flexibility and quick disbursal. However, interest rates are typically higher than secured loans due to the higher risk for the lender.
Also Read : How to Close a Personal Loan Early
In India, personal loans are traditionally offered to salaried or self-employed individuals who have a stable income and good credit history. So where do students stand in this equation?
Can a Student Get a Personal Loan in India?
The short answer is: Yes, but with limitations. Most students don’t have a steady source of income or a strong credit history, which makes them technically ineligible for standard personal loans from banks. However, there are several alternative paths available, especially in 2025, with the rise of fintech lenders, digital loan apps, and joint-loan options. These channels make it possible for students to access personal loans under certain conditions.
Key Reasons Why Students Seek Personal Loans in India
- Paying Tuition Fees or Exam Costs
- Buying a Laptop or Smartphone
- Enrolling in Online Certification or Coaching Programs
- Travel & Accommodation for Internships
- Relocation Expenses for Higher Studies
- Emergency Expenses (Health, Family)
- Building a Credit Score at an Early Age
- Starting a Freelance Business or Side Hustle
Personal Loan Eligibility Criteria for Students in India
As of 2025, the eligibility criteria for students vary by lender, but here are the general expectations:
- Age: Minimum 18 years old (some lenders require 21+)
- Income: A part-time job, freelance work, stipend, or proof of family income
- Co-applicant or Guarantor: Typically required if no stable income
- CIBIL Score: Optional, but helps if the student has one
- Bank Account in India: Mandatory for disbursal
- Valid ID & Address Proof: Aadhaar, PAN, Voter ID, etc.
Options Available: Personal Loans for Students in India
Let’s break down the available options for students to secure a personal loan in India in 2025:
1. Student-Friendly Digital Loan Apps
Some fintech startups have started targeting students with micro-loans and small ticket-size loans ranging from ₹5,000 to ₹50,000. These are easy to access through apps and typically require minimal documentation. Popular platforms include:
- KreditBee Student Loans
- LazyPay Student Credit
- CASHe Student Offerings
- MoneyTap Student Flexi Loans
- mPokket (for small emergency loans)
These apps check your Aadhaar + PAN, and some may ask for your college ID and bank statement.
2. Loans with Co-applicants
Many banks and NBFCs offer personal loans to students if they apply jointly with a parent, guardian, or earning sibling. This is more like a standard personal loan, but your co-applicant’s creditworthiness is considered.
- SBI Personal Loan with Parent Co-applicant
- HDFC Bank Personal Loan with Guarantor
- Bajaj Finserv with Income Proof of Guardian
Loan amounts can range from ₹50,000 to ₹5 lakhs, and interest rates are based on the co-applicant’s credit profile.
3. Freelancer Student Loans
If you’re a student who’s earning via freelancing, gig work (like content writing, tutoring, YT, design, etc.), some lenders now consider that valid income for eligibility. Providing bank statements and ITR (Income Tax Returns) can increase your approval chances significantly.
4. Education Loan Top-ups as Personal Loan
Some lenders allow top-up on existing education loans for personal needs (non-tuition). This is especially useful for hostel fees, travel, gadgets, etc.
- Axis Bank Education Loan Top-up
- IDFC FIRST Bank Personal Loan for Students
Documents Required for Students Applying for Personal Loan
Here’s a checklist of documents usually needed:
- Aadhaar Card
- PAN Card
- Passport-sized Photo
- College ID Card or Admission Letter
- Last 3–6 Months Bank Statement
- Income Proof (if applicable — stipend/salary/freelance invoice)
- Co-applicant’s KYC and Income Documents (if applicable)
Interest Rates & Loan Amounts for Students in 2025
| Loan Type | Loan Amount | Interest Rate | Tenure |
|---|---|---|---|
| Fintech Apps | ₹5,000 – ₹50,000 | 18% – 36% p.a. | 3 – 12 months |
| Bank Loans with Co-applicant | ₹50,000 – ₹5,00,000 | 10% – 16% p.a. | 12 – 60 months |
| Freelance Income Loans | ₹20,000 – ₹2,00,000 | 16% – 24% p.a. | 6 – 36 months |
Benefits of Getting a Personal Loan as a Student
- Fulfills Short-Term Financial Needs Quickly
- No Collateral Required
- Builds Credit Score Early
- Boosts Financial Independence
- Opportunity to Handle Finances Responsibly
Risks & Things to Watch Out For
- High Interest Rates: Some fintech apps charge very high APRs.
- Debt Trap Risk: Missing EMIs can lead to penalties and credit damage.
- Scam Loan Apps: In 2025, many fake loan apps exist. Always use RBI-registered lenders.
- Over-Borrowing: Borrow only what you can repay.
- Impact on Co-applicant: If you default, your parent’s credit score is hit.
Tips for Students Applying for Personal Loan
- Check Your Eligibility Thoroughly – Understand what the lender expects.
- Borrow Small, Repay Fast – Keep EMIs short to avoid piling interest.
- Maintain a Healthy Bank Statement – Even scholarship or allowance entries help.
- Don’t Use Multiple Loan Apps at Once – It can hurt your credit profile.
- Use the Loan Wisely – Preferably for education, growth, or income-related purposes.
Alternatives to Personal Loan for Students
Before applying, consider if these alternatives serve your need better:
- Education Loans – Lower interest, longer tenure
- Credit Cards for Students – Great for managing small recurring expenses
- Peer-to-Peer Lending – Sites like Faircent or LenDenClub offer small-ticket loans
- Part-Time Income – Freelancing or campus jobs to build self-sufficiency
- Government Scholarships or Grants – Merit-based funding options
Final Thoughts: Should Students Take a Personal Loan in India?
If you’re a student in 2025, taking a personal loan should be a carefully calculated decision. It’s certainly possible now, more than ever, with digital platforms supporting young borrowers. However, financial literacy is key — always understand the cost of borrowing, choose the right lender, and ensure repayment discipline. If used wisely, a personal loan can empower students to invest in their future, build credit history, and gain financial independence.
Conclusion
So, can a student get a personal loan in India in 2025? — Absolutely yes, but it depends on your income source, your repayment ability, and whether you’re willing to involve a guarantor. With the rise of fintech lending and flexibility in documentation, students have more access than ever before.
Buy Now : A-Z Blueprint To Mastering The Stock Market
However, this also brings responsibility. High-interest debt can become a burden if misused. Always evaluate the reason for borrowing, the terms of repayment, and your financial discipline before applying. With the right approach, a personal loan can be a stepping stone to self-reliance and opportunity.
Disclaimer : This article is for informational purposes only. Loan eligibility, interest rates, and terms vary by financial institution. Always consult a certified financial advisor or directly contact the bank/NBFC before applying for any financial product.
Keywords : Can a Student Get a Personal Loan – Can a Student Get a Personal Loan 2025 – Can a Student Get a Personal Loan Guide
