Education loan to study in Germany: Banks, Rates, Eligibility, Repayment and more.

Germany is home for top universities like Technical University of Munich (TUM) and Heidelberg University, making it the most sought-after destination for abroad education. Every year around 50,000 Indian students set foot in Germany to complete their higher education. What makes Germany stand apart in the list of international countries for foreign education? Well, there are many reasons for this! First Germany offers culturally rich experience and high-quality education for international students. The second being the wealth of employment opportunities offered post education. The final and most important reason is most of the public universities and some private universities do not charge tuition fee making it affordable. However, if you are worried about the living expenses and other costs such as blocked account requirement, we will get it covered for you.

In this blog we will focus on Germany student loans , Types of loans available, student loan interest rate in Germany and what are the repayment options too. Read on to have a thorough understanding to make your study abroad dream a reality.

Cost of studying in Germany

Before getting into the loan Options available to study in Germany let us understand the various costs you will bear, once you arrive in Germany. This will help you to ask for the right loan amount at the bank based on your financial needs.

Average Expenses for International Students in Germany (in EUR & INR)

Continue Reading: Cost of Studying in Germany

Germany Education Loan 

There are many public and private sector banks in India that provide education loans for Germany.  In addition to these options there are some NBFC’s and other financial lenders from Germany who provides study loans for international students.  Let us quickly understand the type of loans available to study in Germany

• Secured education loan: These types of loans require collateral or security against the money borrowed. The collateral can be a fixed financial asset-like property or intangible assets like FD or insurance policies.
  
  
• Unsecured educational loans: As the name suggests this is education loan for Germany without collateral.  You need not pledge any collateral to receive this loan. However, the interest rates can be higher and require a co- applicant.

List of banks offering education loan for Germany in India

Almost every bank be it public or private offers student loan for Germany. However, the interest rates of public sector banks are lower when compared to private and NBFC’s. You can choose an appropriate lender based on the expenses and the loan limit of the lender.

Expenses covered under student loan for Germany in India

• Tuition fees as specified by the university or college
  
  
• Accommodation
  
  
• Travel expenses
  
  
• Examination fees
  
  
• Library and laboratory charges
  
  
• Purchase of books, equipment, uniforms, computers or laptops, and instruments necessary for completing the course
  
  
• German Blocked account: € 11,904.00

Note: A German blocked account is a special type of bank account required for international students applying for a German student visa. It ensures you have enough funds (currently around €11,904 per year) to cover your living expenses in Germany, with a monthly withdrawal limit (usually around €934).

Also Read: Student Accommodation in Germany

Eligibility for education loan in Germany

To be eligible for an education loan in Germany, you should meet the following requirements:

• Be an Indian citizen with a confirmed admission letter from a recognized German university or institution.
  
  
• Have completed 10+2 (for UG) or a bachelor’s degree (for PG programs).
  
  
• Maintain a strong academic background.
  
  
• Apply with a co-applicant (usually a parent/guardian) in most unsecured loan cases.
  
  
• Fulfill the lender’s credit and income criteria, especially for unsecured loans.
  
  
• Provide collateral, if applying for a secured loan for a higher amount

Study loan for Germany: List of documents required:

To apply for student loan in Germany for international students the following documents should be provided to the banks:

• Admission letter
  
  
• Identity proof (PAN Card, Aadhaar, Passport)
  
  
• 10th, 12th, and bachelor’s mark sheets
  
  
• Entrance exam scores (if applicable – IELTS, TOEFL, GRE, etc.)
  
  
• Fee structure
  
  
• Valid passport and student visa (if already available)
  
  
• Passport-size photographs
  
  
• Co-applicants KYC and income proof
  
  
• Proof of funds in a blocked account
  
  
• Additional documents if collateral is required

Co- applicant's Documents:

• Identity proof (PAN Card, Aadhaar, Passport)
  
  
• Address proof
  
  
• Income proof (Salary slips, ITRs, Form 16, Bank statements – usually 6 months)

Repayment of Germany Student Loan

The repayment period for an unsecured education loan is usually10 years and you need to start paying EMI after the moratorium period which is the complete course duration + 6 months. ( Moratorium period : the period during which you need not pay the EMI to the lender, rather complete your education and secure a job)

Conclusion:

As you have read, there are various banks and financial lenders ready to offer education loan in Germany for international students. Make use of the plethora of options available to secure a student loan Germany and make your study abroad dream a reality.

Recommended Article:

• Intakes in Germany
• Scholarships for Students in Germany

Frequently Asked Questions: 

Q. Can I get an education loan for MS in Germany as an Indian student?

A. Yes, many Indian banks and NBFCs offer education loans for MS in Germany. You can opt for secured loans (with collateral) from public banks like SBI or unsecured loans from NBFCs such as HDFC Credila, Avanse, and Auxilo. These loans typically cover living costs in Germany, travel, health insurance, and other academic expenses.

Q. How to get an education loan for Germany?

A. To get an education loan for Germany, you should:

1. Secure admission to a recognized German university.
2. Choose a lender (public/private bank or NBFC in India).
3. Submit required documents – admission letter, academic records, co-applicant income proof, etc.
4. Decide on loan type – secured (with collateral) or unsecured.
5. Apply and complete verification – once sanctioned, funds can be disbursed toward tuition, blocked account, and other expenses.

Q. Does the loan cover the German blocked account requirement?

A. Yes, lenders include the blocked account amount (around €11,904/year) as part of the loan to show proof of funds for your visa application.

Q. Do I need collateral for an education loan in Germany?

A. Not always. Unsecured education loans in Germany are available up to ₹60 lakhs from private lenders for students admitted to top universities. For larger amounts or lower-ranked institutions, collateral may be required.