A student can get a personal loan in India by applying with an earning parent or guardian as co-applicant, or on their own if they are 21+ with a stipend, part-time or freelance income. In 2026, a personal loan for students typically ranges from ₹50,000 to ₹5 lakh, with interest rates starting 9.99%–11% p.a. and tenure of 12 to 60 months. A CIBIL score of 750+ (yours or your co-applicant’s) improves approval odds.
Introduction
A personal loan for students is an unsecured loan that can pay for a laptop, hostel deposit, coaching fees, travel for an admission, or an emergency. Unlike an education loan, the money is not tied to tuition, so you can use it for any genuine need.
The catch is income. Banks and NBFCs lend against repayment capacity, and most students have none yet. That is why almost every student personal loan is approved on the strength of a co-applicant’s salary and credit score.
Personal Loan for Students: Key figures at a glance (2026):
| Parameter | Typical range for a personal loan for students |
| Loan amount | ₹50,000 – ₹5 lakh (co-applicant profile can support up to ₹25–40 lakh) |
| Interest rate | 9.99% – 30% p.a. (lender and credit score dependent) |
| Tenure | 12 – 60 months (some lenders up to 72) |
| Processing fee | ₹99 flat to 5% of loan amount + GST |
| Minimum age | 18–21 years (applicant); co-applicant usually up to 60 |
| Credit score | 750+ preferred |
| Disbursal | Same day to 3 working days online |
Also Read: Personal Loan Without Guarantor or Collateral: Apply Now (2026 Guide)
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*Interest rate subject to eligibility & credit profile. T&C apply.
What Is a Personal Loan for Students?
A personal loan for students is an unsecured, fixed-EMI loan given to a student (usually with a co-applicant) for any personal or study-related expense, with no collateral and no restriction on end use.
It works like any personal loan. You borrow a lump sum, it is credited to your bank account, and you repay it in equal monthly instalments (EMIs) on a reducing-balance basis. There is no moratorium, so EMIs usually start the month after disbursal.
Common uses of a loan for students:
- Semester, exam or coaching fees not covered by an education loan
- Laptop, phone or study equipment
- Hostel deposit, PG rent and relocation costs
- Certification courses, internships and travel for campus placements
- Medical or family emergencies
Also Read: Different Types of Personal Loans in India: A Comprehensive Guide
Student Loan Eligibility: Who Can Apply for a Personal Loan for Students?
Student loan eligibility for a personal loan rests on four things: age (18–21+), Indian citizenship, a repayment source (your income or a co-applicant’s) and a credit score of 750+. Without income, a working parent or guardian must join as co-applicant.
Lenders judge two profiles. If you earn, they check yours. If you don’t, the co-applicant’s profile decides the outcome.
| Criteria | Student applicant | Co-applicant (parent/guardian) |
| Age | 18–21 years minimum (varies by lender) | Usually 21–60 years |
| Nationality | Resident Indian | Resident Indian |
| Income | Stipend, internship, part-time or freelance income helps | Salaried or self-employed with stable income; minimum often ₹15,000–₹25,000/month depending on city |
| Credit score | Thin file accepted if co-applicant is strong | 750+ preferred |
| Existing EMIs | — | Total EMIs ideally under 40–50% of monthly income |
| Bank account | Active account in student’s name | Salary/business account statements |
Students with a stipend or part-time work have a better chance of approval on their own. For most first-year undergraduates, however, the realistic route is a student personal loan with a parent as co-applicant.
Also Read: What You Need to Know About Eligibility for Joint Personal Loans
Documents Required for a Student Personal Loan
You need KYC (PAN, Aadhaar), address proof, a college ID or admission letter, 6 months’ bank statements, and the co-applicant’s income proof (3 salary slips or 2 years’ ITR).
| Document type | Student | Co-applicant |
| Identity proof | PAN card + Aadhaar/passport | PAN card + Aadhaar |
| Address proof | Aadhaar, utility bill or rent agreement | Aadhaar, utility bill or rent agreement |
| Study proof | College ID card, admission or fee letter | — |
| Income proof | Stipend letter or internship offer (if any) | Last 3 months’ salary slips or 2 years’ ITR |
| Bank statement | Last 6 months | Last 6 months |
| Photograph | Passport-size | Passport-size |
Tip: When you apply for a personal loan for students online, keep clear PDF or JPG scans ready. Most lenders now complete KYC through Aadhaar OTP and video KYC.
Also Read: Personal Loan Without Salary Slip: 2026 Eligibility Guide
Money in Minutes
- Cash from ₹5000–5 Lakh*
- Instant approval
- Rates from 10.49% p.a.*
No hidden charges • Trusted by 1M+ borrowers across 4,000+ cities
*Interest rate subject to eligibility & credit profile. T&C apply.
Personal Loan for Students Interest Rates 2026: Bank and NBFC Comparison
In 2026, personal loan for students rates in India start at about 9.99% p.a. at private banks (HDFC, ICICI, Axis), 10% at SBI and Bajaj Finance, and 10.99% at Tata Capital. A student personal loan is priced on the co-applicant’s credit score, so the final rate can range up to 24–30% for weaker profiles.
| Lender | Interest rate (p.a.) | Max loan amount | Tenure | Processing fee |
| HDFC Bank | 9.99% – 24.00% | ₹40 lakh | 1–5 years | Up to ₹6,500 + GST |
| ICICI Bank | 9.99% – 16.50% | ₹25 lakh | 1–6 years | Up to 2% |
| Axis Bank | 9.99% – 22.00% | ₹15–25 lakh | Up to 6 years | Up to 2% |
| SBI | 10.00% – 15.00% | ₹35 lakh | 1–6 years | Up to 1.5% |
| Bajaj Finance | 10.00% – 30.00% | Varies | Up to 6 years | Up to 3.93% |
| Tata Capital | 10.99% – 29.99% | ₹35 lakh | 12–72 months | Up to 3% + GST (offers from ₹99 flat) |
Rates as published by lenders and aggregators between May and October 2026; your offer depends on credit score, income and loan amount. Sources: ThePrint, Finowings, Zee Business, Tata Capital.
A 1% lower rate saves more than ₹25,000 in interest on a ₹5 lakh loan over 5 years, so compare at least three offers before you sign.
Also Read: NBFC Personal Loan vs Bank Personal Loan: What’s The Better Choice?
How Much Personal Loan Can a Student Get, and What Will the EMI Be?
Most students get ₹50,000 to ₹5 lakh. A ₹1 lakh loan at 11% for 24 months costs about ₹4,661 a month; a ₹3 lakh loan at 12% for 36 months costs about ₹9,964 a month.
The amount you get depends on the co-applicant’s income and existing EMIs. Lenders generally keep total EMIs within 40–50% of monthly take-home pay.
| Loan amount | Interest rate | Tenure | Monthly EMI | Total interest |
| ₹50,000 | 11% | 12 months | ₹4,419 | ₹3,029 |
| ₹1,00,000 | 11% | 24 months | ₹4,661 | ₹11,859 |
| ₹2,00,000 | 12% | 36 months | ₹6,643 | ₹39,143 |
| ₹3,00,000 | 12% | 36 months | ₹9,964 | ₹58,715 |
| ₹5,00,000 | 13% | 48 months | ₹13,414 | ₹1,43,860 |
| ₹5,00,000 | 11% | 60 months | ₹10,871 | ₹1,52,273 |
EMIs calculated on a reducing-balance basis, excluding processing fee and GST.
The EMI formula lenders use:
EMI = \frac{P \times r \times (1+r)^{n}}{(1+r)^{n} – 1}
Here P is the principal, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months. Borrow only what the co-applicant can repay comfortably even if your job search takes longer than planned.
Also Read: How EMI is Calculated for Personal Loan?
Personal Loan vs Education Loan: Which Loan for Students Is Better?
Choose an education loan for tuition and large course fees, because it is cheaper (about 6.90%–11% p.a.), has a moratorium and gets a Section 80E tax deduction. Choose a personal loan for students for smaller, urgent or non-tuition needs that must be funded within a day or two.
| Feature | Personal loan for students | Education loan |
| Purpose | Any personal or study expense | Tuition, hostel, books, travel for a course |
| Interest rate (2026) | ~9.99% – 30% p.a. | ~6.90% – 11% p.a. at public sector banks |
| Typical amount | ₹50,000 – ₹5 lakh | Up to ₹50 lakh+ (₹1.5 crore for study abroad at SBI) |
| Collateral | None | None up to ₹7.5 lakh |
| Moratorium | No; EMIs start next month | Course period + 1 year |
| Tax benefit | None | Full interest deductible under Section 80E (old regime) for up to 8 years |
| Disbursal speed | Same day to 3 days | 1–3 weeks |
What does the PM Vidyalaxmi scheme offer students?
PM Vidyalaxmi gives collateral-free, guarantor-free education loans to students at about 860 top-ranked institutions, with a 75% government credit guarantee on loans up to ₹7.5 lakh and 3% interest subvention on loans up to ₹10 lakh for families earning up to ₹8 lakh a year.
Students from families earning up to ₹4.5 lakh in technical or professional courses already get full interest subvention during the moratorium under the CSIS scheme. SBI prices its PM Vidyalaxmi loans from 6.90% p.a. Apply through the PM Vidyalaxmi portal. Sources: PIB, SBI.
| Did You Know? In FY 2025-26, the PM-Vidyalaxmi portal received 6,45,514 education loan applications across all schemes, of which 1,10,667 were for PM-Vidyalaxmi loans. Out of these, 70,852 loans were sanctioned and 67,728 were disbursed. Since the scheme’s launch in November 2024, a total of 1,12,817 collateral-free, guarantor-free education loans had been sanctioned by July 21, 2026, worth ₹15,634 crore. Source: PIB – PM Vidyalaxmi Scheme backgrounder, 29 July 2026 | Careers360, 28 July 2026 |
Also Read: Collateral vs. Non-Collateral Education Loans – Which is Right for You?
Money in Minutes
- Cash from ₹5000–5 Lakh*
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- Rates from 10.49% p.a.*
No hidden charges • Trusted by 1M+ borrowers across 4,000+ cities
*Interest rate subject to eligibility & credit profile. T&C apply.
How to Apply for a Personal Loan for Students Online
To apply for a personal loan for students online, check eligibility, compare offers, add a co-applicant, complete e-KYC, upload documents, review the Key Fact Statement and e-sign. Approved loans are usually credited within 24–72 hours.
- Work out the exact amount. Add fees, deposits, equipment and travel, then borrow only that.
- Check student loan eligibility. Use the lender’s or Ruloans personal loan eligibility checker with your co-applicant’s income and CIBIL score.
- Compare offers. Look at interest rate, APR, processing fee and foreclosure charges, not just the EMI.
- Add a co-applicant. A working parent or guardian with a 750+ score raises approval odds and lowers the rate.
- Complete e-KYC. Verify PAN and Aadhaar through OTP or video KYC.
- Upload documents. College ID, bank statements and the co-applicant’s salary slips or ITR.
- Read the Key Fact Statement (KFS). Check APR, total cost and all charges before you accept.
- E-sign and receive funds. The amount is credited to the borrower’s bank account.
Also Read: 5 Questions To Ask Yourself Before Signing A Personal Loan Agreement!
Is an Instant Loan for Students Possible?
Yes, an instant loan for students is possible when the co-applicant has a pre-approved offer or a strong credit profile; many banks and NBFCs disburse in minutes to 24 hours after e-KYC. Students without a co-applicant usually qualify only for small amounts (₹10,000–₹50,000) from RBI-regulated digital lenders.
Also Read: Best Instant Personal Loans in India 2026: Interest Rates Compared
Is It Safe to Take an Instant Personal Loan for Students From an App?
It is safe only if the app belongs to, or partners with, an RBI-regulated bank or NBFC. Under the RBI (Digital Lending) Directions, 2025, every lender must give you a Key Fact Statement before you sign and a cooling-off period of at least one day to exit the loan without penalty.
Before you take an instant loan for students from any app, check:
- The lending bank or NBFC is named on the app and the loan agreement.
- The app appears in RBI’s public directory of digital lending apps.
- You received a digitally signed KFS showing APR, fees and penal charges.
- Money is credited directly to your bank account, never through a third-party wallet.
- The app does not ask for access to your contacts, photos or gallery.
Avoid any app that charges an upfront “approval fee” or threatens borrowers. Source: RBI Digital Lending Directions, 2025.
How Can Students Improve Personal Loan Approval Chances?
To strengthen student loan eligibility, apply with a co-applicant who has a 750+ CIBIL score, ask for a realistic amount, show any stipend or part-time income, and avoid applying to many lenders at once.
- Pick the stronger co-applicant. The parent with higher income and fewer EMIs gets better terms.
- Keep the amount small. ₹50,000–₹2 lakh is approved far more easily than ₹5 lakh for a personal loan for students.
- Show your own income. Internship stipends or freelance credits in your bank statement strengthen the file.
- Start building credit early. A secured credit card against a fixed deposit, paid in full each month, builds your score.
- Limit hard enquiries. Several applications in a few weeks lower your score; compare offers through one platform instead.
| Did You Know? Young Indians are borrowing earlier than ever. By March 2026, Gen Z borrowers (aged 30 or below) made up half of all new-to-credit-card consumers, up from 43% in March 2022. TransUnion CIBIL’s July 2026 report “Beyond the Swipe” found that before getting their first credit card, 23% of these young borrowers already had a small-ticket personal loan and 31% held two or more credit products. This means an early, well-managed loan is now a common first step to building a CIBIL score. Source: Moneylife, 10 July 2026 | Outlook Business |
Also Read: How to Get a Personal Loan with Low CIBIL Score in India (2026)
Conclusion
A personal loan for students gives you quick, collateral-free funds for fees, gadgets, travel or emergencies. With an earning co-applicant and a good credit score, approval is easy and EMIs stay manageable.
Ruloans has helped borrowers since 2000 and works with 275+ banks and NBFCs across 4,000+ cities, so you can compare offers and pick the best rate in one place.
Check your eligibility and apply for a personal loan for students on Ruloans today.
Money in Minutes
- Cash from ₹5000–5 Lakh*
- Instant approval
- Rates from 10.49% p.a.*
No hidden charges • Trusted by 1M+ borrowers across 4,000+ cities
*Interest rate subject to eligibility & credit profile. T&C apply.
FAQ
1. Can I get a personal loan as a student with no credit history?
Yes. Lenders accept students with no CIBIL history when an earning parent or guardian with a good credit score applies as co-applicant. The co-applicant’s score and income support the application, and your timely EMIs start building your own credit profile from the first month.
2. Can a final-year student with a job offer letter get a personal loan?
Yes. Some banks and NBFCs consider a confirmed job offer letter from a reputed employer as proof of future income. If you also add a co-applicant, you can often get a higher loan amount and a better rate on your student personal loan.
3. Can I use a personal loan to pay college or university fees?
Yes. A personal loan has no end-use restriction, so you can use it for semester fees, exam fees, admission deposits or any other education cost. It works especially well for smaller fee payments that are due within days.
4. Can my elder sibling or a relative be my co-applicant?
Yes. Most lenders accept a parent, guardian, spouse or close family member such as an earning elder sibling as co-applicant. They need a stable income and a good credit score, and lenders usually prefer someone living at the same address.
5. Can I take a personal loan if I already have an education loan?
Yes. You can hold both loans at the same time if your co-applicant’s income can comfortably cover the combined EMIs. Many students use a personal loan for laptops, hostel deposits or travel that the education loan doesn’t cover.
6. Does a personal loan help a student build a credit score?
Yes. A loan in your name, or one where you are a co-borrower, is reported to credit bureaus like CIBIL. Paying every EMI on time builds a strong credit history early, which makes future home, car or business loans easier and cheaper to get.
7. Can students get a small personal loan of ₹10,000 to ₹25,000?
Yes. Many RBI-regulated banks and NBFCs offer small-ticket personal loans starting from ₹10,000. These loans have shorter tenures and quick digital approval, so they suit urgent expenses like exam fees, books or a phone repair.
8. Can I get a personal loan for study-abroad expenses like visa fees and flights?
Yes. A personal loan for students can cover visa fees, flight tickets, application fees, accommodation deposits and initial living costs abroad. The loan is taken in India with a resident parent as co-applicant and is usually disbursed within one to three days.
9. Can a student apply with a self-employed parent as co-applicant?
Yes. Lenders accept self-employed parents, including business owners, shopkeepers and professionals such as doctors or CAs. They usually need two years of ITR, a business proof and bank statements instead of salary slips.
10. Can I get a personal loan while preparing for competitive exams or during a gap year?
Yes. Students preparing for exams like UPSC, CAT, NEET or GATE can get a personal loan for coaching fees, study material or living costs. An earning parent or guardian as co-applicant makes approval simple, even if you are not enrolled in college.
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