Personal Loans for Students: What’s Actually Possible

Students in India aged 18 and above can access personal loans through RBI-registered NBFCs or with a co-signer, but standard bank personal loans require income proof most students lack. Small-ticket NBFC loans (Rs 5,000 to Rs 50,000), co-signed personal loans, and education loans are the three realistic options. Education loans are almost always cheaper.

Yes, students in India can access certain personal loans, but the reality is far more limited than most loan apps and viral search results suggest. If you are under 18, have no PAN card, or are hoping a marksheet will unlock instant cash, you need to read this before you apply anywhere. Here is what is actually possible, and what is mostly myth.

Personal Loans for Students: The Honest Picture

Most banks and NBFCs define a personal loan as an unsecured credit product for salaried or self-employed adults. Students do not fit that profile neatly. No income, limited credit history, and often no PAN card means most standard personal loan products are simply off the table without a co-signer or collateral.

That does not mean zero options exist. It means the options that do exist are narrower, more expensive, and require more caution than any Instagram ad will tell you.

What Lenders Actually Check

Before any lender approves a personal loan for students, they check three things: identity verification (KYC), repayment capacity, and credit history. Students typically struggle on all three fronts. No income means no repayment capacity. No prior borrowing means no CIBIL score. And many students under 21 have not applied for a PAN card yet.

The Reserve Bank of India’s KYC Master Direction (updated 2024) requires lenders to verify identity and address for every borrower. A PAN card or Form 60 is mandatory for loan amounts above Rs 50,000. Below that threshold, Aadhaar-based eKYC is accepted, but you still need to be an adult.

Claim vs Reality: The Four Viral Student Loan Searches

Claim: “I Can Get a Loan Without a PAN Card”

Reality: For small personal loans for students under Rs 50,000, some lenders accept Aadhaar eKYC without a PAN card. This is technically possible. But you still need to be 18 or older, and most app-based lenders will ask for your PAN during final disbursal anyway because it connects to your credit bureau profile.

If you do not have a PAN card yet, apply for one first. It is free, takes about 10 days online through the NSDL or UTI portal, and it is the single most useful financial document you will own as a student.

Claim: “I Can Get a Loan on My 10th or 12th Marksheet”

Reality: No regulated bank or NBFC in India offers a personal loan against a 10th or 12th marksheet. Full stop. Marksheets are academic documents, not financial assets. They have no collateral value in the formal lending system.

What you will find when you search this term is a mix of scam apps, phishing sites, and predatory micro-lenders charging interest rates well above the legal grey zone. The National Cyber Crime Reporting Portal (cybercrime.gov.in) logged over 1.1 million complaints in 2023, with a significant share involving fraudulent loan apps targeting young people, according to the Ministry of Home Affairs Annual Report 2023-24.

If any app promises you a loan against your marksheet, it is either a scam collecting your documents for identity fraud, or an illegal lender charging 40-60% annualised interest. Walk away.

Claim: “I Am Under 18, Can I Get a Loan?”

Reality: No. This is not a policy preference, it is contract law. Under the Indian Contract Act, 1872, any contract entered into by a minor (below 18) is void ab initio. That means it has no legal standing from the start. A lender who gives a loan to someone under 18 cannot legally enforce repayment, which is exactly why no regulated lender will do it.

If you are 16 or 17 and need funds, the only legitimate route is through a parent or guardian who takes the loan in their name and co-signs all documents. There is no workaround, and any app claiming otherwise is operating illegally.

Claim: “Students Can Get Instant Personal Loans Easily”

Reality: Some fintech NBFCs do offer small-ticket personal loans for students aged 18 and above, typically between Rs 5,000 and Rs 50,000. Products from platforms like Slice, KreditBee, and mPokket have specifically targeted the student segment. But instant does not mean free of consequences. Interest rates on these products range from 18% to 36% per annum, and late payment penalties hit your CIBIL score immediately.

According to TransUnion CIBIL’s Credit Market Indicator report (2024), borrowers aged 18-25 who miss their first loan payment have a 40% higher probability of default within 12 months compared to older first-time borrowers. Starting your credit life with a missed EMI is genuinely damaging.

What Students Can Actually Access

Co-Signed Personal Loans

If you are 18 or older and have a parent or guardian with a stable income, a co-signed personal loan is the most straightforward path. The co-signer’s income and credit score support the application. Both parties are equally liable for repayment, so this is a serious commitment, not a formality. A personal loan for students without income almost always requires this route through a regulated bank or NBFC.

Education Loans vs Personal Loans for Students

Education loans are specifically designed for students and are almost always the better product. They carry lower interest rates, have a moratorium period during the course, and qualify for tax deduction under Section 80E of the Income Tax Act. The SBI Student Loan Scheme, for example, currently offers rates starting at 8.65% per annum with a repayment moratorium of course duration plus 12 months.

Feature	Education Loan	Personal Loan
Typical interest rate	8.5% to 12% p.a.	12% to 36% p.a.
Repayment starts	After course + 6-12 months	Immediately (next month)
Tax benefit	Yes, Section 80E	No
Collateral required	Above Rs 7.5 lakh (most banks)	Not required (unsecured)
Requires co-applicant	Usually yes (parent/guardian)	Only if student has no income
Eligible use	Tuition, hostel, equipment	Any purpose

If your need is education-related, an education loan from a PSU bank like SBI, Bank of Baroda, or Canara Bank will almost always cost you less over the loan’s life than any personal loan product.

Laptop Loans and Device Financing for Students

A laptop loan for students is one of the more practical small-loan use cases. Several options exist here that do not require a credit history. Many laptop retailers, including Croma, Reliance Digital, and brand-direct stores for Dell, HP, and Lenovo, offer zero-cost EMI or low-cost EMI through Bajaj Finserv, HDFC Bank, and similar partners. You need an Aadhaar card, a PAN card, and sometimes a co-applicant if you are a student with no income.

Some colleges also have laptop financing schemes tied to their institutional partnerships. Check your college’s finance or student welfare office before going to a retail lender.

Small NBFC Loans: Proceed With Caution

For genuinely urgent needs of Rs 5,000 to Rs 25,000, RBI-registered NBFCs with student-facing products are an option. The key word is registered. Always verify an NBFC’s registration on the RBI’s official NBFC list at rbi.org.in before applying. Unregistered apps are not bound by the Fair Practices Code and can charge whatever they want.

According to a 2023 RBI working paper on digital lending, over 600 illegal lending apps were identified and removed from app stores between 2021 and 2023. Many specifically targeted students and gig workers. The safeguard is simple: check the RBI list first.

How to Get a Rs 10,000 Personal Loan as a Student

This is one of the most searched questions in this category, and the honest answer has a few layers. If you are 18 or older with a PAN card and Aadhaar, you can apply through an RBI-registered NBFC app for a small personal loan for students. Approval depends on your credit profile, which for most students is thin or nonexistent.

A co-signer dramatically improves your approval odds. Alternatively, some credit unions and cooperative banks in India offer small emergency loans to students enrolled at affiliated institutions, often at rates far below fintech apps.

The most overlooked option is your own institution’s student welfare fund or emergency financial assistance scheme. IITs, NITs, and many private universities have these, and they are either interest-free or very low-interest. Ask your finance office directly. This is also the safest route for a student personal loan without a co-signer or credit history.

Building Credit History Early and Safely

The smarter long-term play is to start building a CIBIL score for students now, before you actually need a loan. A secured credit card, where you deposit Rs 10,000-20,000 as collateral and get a card with that as your limit, is the lowest-risk way to do this. Use it for small purchases, pay the full balance every month, and within 12-18 months you will have a real CIBIL score that opens better loan options later.

This matters more than most students realise. According to TransUnion CIBIL (2024), individuals with a credit history of 24 months or more get loan approval rates roughly 3x higher than first-time applicants with no score. Starting at 18 or 19 means you will have a meaningful score by the time you actually need a large loan for a vehicle, home, or business.

A Smarter Use of That Rs 10,000

Before you take on any debt, it is worth asking what the money is actually for. If the answer is a course or a certification, there are genuinely affordable ways to upskill that do not require borrowing at 24% interest.

Cybersecurity, ethical hacking, and tech skills are among the highest-ROI areas a student can invest in right now. India’s cybersecurity workforce gap is estimated at over 800,000 professionals through 2025, according to NASSCOM’s Future of Work report (2023). An affordable online course in these areas often costs less than one month’s interest on a high-rate personal loan, and the career returns are significantly higher.

Explore the 3University course catalogue for cybersecurity, ethical hacking, and programming courses built specifically for Indian students and early-career professionals. You can also check the 3University blog for career guidance on breaking into tech without expensive degrees or high-interest debt.

Personal loans for students are a tool, not a solution. Use them only when the purpose has a clear, measurable return, and only through regulated lenders you have verified independently.

Frequently Asked Questions

Can a student get a personal loan in India?

Yes, if you are 18 or older and meet KYC requirements. Most banks will not approve personal loans for students without a co-signer since there is no income to assess. Some RBI-registered NBFCs offer small-ticket loans (Rs 5,000 to Rs 50,000) to students with Aadhaar and PAN. Interest rates are higher than education loans, so always compare before you apply.

Can I get a personal loan without a PAN card?

For loans under Rs 50,000, some lenders accept Aadhaar eKYC without a PAN card. But most fintech lenders will still ask for PAN at disbursal to link your repayment history to your credit bureau profile. Applying for a PAN card online through NSDL is free and takes about 10 days. It is worth doing before you apply anywhere.

Are 10th marksheet loans real?

No regulated bank or NBFC in India offers loans against a 10th or 12th marksheet. Marksheets are not financial assets. Sites and apps claiming otherwise are either scams collecting your documents for identity fraud or illegal lenders charging extreme interest rates. The National Cyber Crime Reporting Portal received over 1.1 million complaints in 2023, many involving fraudulent loan apps targeting students.

Can someone under 18 get a loan in India?

No. Under the Indian Contract Act, 1872, any contract with a minor is void from the start. No regulated lender will approve a loan for someone under 18 because they cannot legally enforce repayment. If you are under 18 and need funds, a parent or guardian must take the loan in their own name. Any app offering loans to minors is operating illegally.

What is the safest way for a student to borrow Rs 10,000?

Check your college’s student welfare or emergency fund first, as many universities offer interest-free or low-interest emergency loans. If that is not available, use an RBI-registered NBFC and verify registration at rbi.org.in before applying. A co-signer improves your approval odds and may reduce your rate. Avoid unregistered apps entirely, regardless of how fast they promise approval.

Last updated: July 2026. Reviewed by the 3University editorial team.