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Education Loan for Study in Germany: How to Get an Education Loan to Study in Germany?

Yocket Editorial Team

Germany is one of the top choices for students willing to study overseas. However, studying in Germany, just like any other country abroad, comes at a cost. Therefore, many students take up part-time jobs to support themselves. However, even part time jobs sometimes get tough to fill the gaps. To avoid such situations, students usually opt for an education loan to study in Germany.

A study loan for Germany offers opportunities to students willing to study at their dream university without stressing about paying college expenses. Students can pay off this loan amount without downsizing their quality of education when they start earning. So, if you are someone looking for an education for study in Germany, stay with us till the end! We have got your back!

Table of Contents

What is the Cost of Studying in Germany?

Before we delve into details of education loan for Germany, let us first understand a little about the total cost of education:

The total cost includes - cost of studies and cost of living. While the cost of  living will remain the same irrespective of the nature of the university you are choosing, the education cost is bound to go up in private universities in Germany.


Cost per Year

Cost of Education at Public Universities

0-3,000 EUR

Cost of Education at Private Universities

20,000 - 40,000 EUR

Cost of Living

10,200 - 12,000 EUR

So, depending on the university you are studying at, you can estimate your expenses and apply for a student loan accordingly.

Recommended: Cost of Studying in Germany

Why Do You Need a Student Education Loan for Germany?

If you’ve conducted the most basic research about studying in Germany, you will know that an international student is not required to pay tuition fees in most public universities in Germany.

However, you might have to pay a nominal admission fee and other charges every term. In spite of the low cost of education in Germany, the cost of living is slightly expensive and might be a financial burden if you don't plan it right.

To manage expenses abroad  most international students take up part-time jobs. However, this earning is only sufficient to make ends meet, therefore, taking a student loan is a safe bet to cover all expenses.

: Different ways to Finance your education in Germany

How to Get Education Loan for Germany: Education Loan in Germany for International Students

An education loan to study in Germany can be available to you through your German universities, and through various organisations (government and private). Students can also look for overseas scholarship programs, and get Germany student loan for international students through various NBFCs in India.

Another option for student loan in Germany is BAföG or  Bundesausbildungsförderungsgesetz, roughly translated as the Federal Training Assistance Act. As the name suggests, it is designed to provide support for those undergoing training.

Students can apply for BAföG online via their website or post the application along with their documents. BAföG provides student loan in Germany as a mix of a zero-interest loan and simple grants.  and a monthly maximum of 861 EUR applies.

To avail this loan for international students in Germany, you must adhere to at least ONE of the listed eligibility:

  • Students typically must have been a resident in Germany for 5 years.
  • You are permanently residing in Germany and at least one of your parents has German or another EU nationality
  • You are permanently residing in Germany and your spouse or partner has German or another EU nationality
  • At least one of your parents has lived in Germany for the last six years and has been gainfully employed for at least three of those years
  • You have lived in Germany for at least five years prior to beginning your studies and have financed your living expenses yourself (= possession of a settlement permit).

If not for BAföG, students can also avail education loan in Germany for international students such as loans from Deutsche Bank or the KFW-Studienkredit loan. The criteria to avail loan for students in Germany varies widely between the banks.  Therefore, if you are an Indian student, it is best to discuss the possibilities with a professional. But, it is recommended that you sort your financial situation before boarding for Germany.

Loan for international students in Germany:  During the pandemic, the German government opened up student loan in Germany for students who were particularly in a crisis. Students could apply for up to 650 EUR a month until March 2.

: 11 Important Education Loan Terms You Need to Know!

What is the Eligibility Criteria to Secure an Education Loan for Germany?

Once you decide to take an education loan, check on the eligibility conditions. The criteria to get an student loan for Germany in India are:

  • The applicant needs to be a citizen of India.
  • The student must have been accepted in any of the bank recognised German universities.
  • The student should be 18 years of age.
  • The applicant should have been accepted into a job-oriented course to repay the loan after their education.
  • The applicant must have a sum of 8,640 EUR per year deposited to his/her bank account to show as education loan for Germany blocked account.

After confirming your eligibility, the next step towards the loan is to assess the type of loan you would like to take.

There are two types of education loans:

Secured Loan

Unsecured Loan

You need to provide the bank with collateral security to attain the loan amount.

 You don’t give any collateral to the bank to get the required loan amount.

Lower Interest Rate

Higher Interest Rate

: What is Margin Money?

What Documents are Required to Get a Student Loan for Germany in India?

To procure a student loan you will have to submit the following documents to the bank. These provide the legitimacy of your education loan application:

  • Letter of admission from the accepted college/University
  • The loan application form filled out in full (with all honesty)
  • Documents on the cost of studies
  • Identification proof
  • Residence proof
  • PAN details of the borrower
  • Previous study records (marks sheet and other achievement certificates)
  • Guarantor/student's bank statements
  • Guarantor/student's statement of assets (For secured bank account)
  • Guarantor/student's proof of income

: Best Education Loan to Study Abroad!

When should you apply for an education loan for Germany?

You should keep a minimum period of 15 days - 1.5 months to get your loan amount sanctioned. Therefore, apply for an education loan immediately after receiving your acceptance letter from any university in Germany.

Top Lenders for Study Loan for Germany

Given below are some of the top banks/ lenders offering loan in Germany for students:


Education Loan

Interest Rate

Expenses Covered (excluding academic fees)

SBI Edvantage Education Loan

₹10.00 Lakhs to ₹1.25 Crores

10.80% to 12.50%

Limited living expenses covered – accommodation and travel expenses only

HDFC Credila Study Abroad Loan

₹10.00 Lakhs to ₹50.00 Lakhs

13.00% to 16.00%

Up to 100% living expenses

Avanse Student Loans

₹4.00 Lakhs to ₹1.25 Crores

12.00% to 16.00%

75% of living expenses (capped at 20% of the sanctioned loan amount)

ICICI Bank Education Loan

₹4.00 Lakhs to ₹36.00 Lakhs

11.25% to 14.25%

Insurance + Travel + Accommodation covered

PNB Udaan Education Loan

₹20.00 Lakhs to ₹1.00 Crore 

10.35% to 12.25%

No living expenses covered

: Education Loans to Study Abroad Without Collateral

Repayment of the Education Loan

Students taking up an education loan need to also be aware of the repayment procedure. The repayment plan for Indian education loans is:

  • Loan from a Public or a Nationalised Bank: You’re supposed to start paying interest and the EMI 6 months after the completion of your course.
  • Loan from a Private Bank: You will have to start paying the interest of your loan immediately after your course ends and the EMIs starts 1 year after your course ends.

: When to Apply for an Education Loan?

Note: You might take up to 10-15 years to repay your education loan.

To avail an education loan is a smart and independent decision. However, you make a smarter choice when you split your finances right. A conscious calculation of your cost of studying in Germany, along with an expense plan and the part-time job you will take up will let you define a perfect plan. By doing so, you will be able to pay off your education loan at ease.

And if you’re still looking for answers to - “Can international students get loan in Germany?”, talk to our Yocket Counsellors!

Frequently Asked Questions about Student Loan for Germany in India

Where can you get student loans in Germany for international students?

How much do you need a loan to study in Germany?

Do they accept students with education loan in Germany?

Are blocked German bank accounts amount covered by the education loan?

Can I get education loan for Germany without collateral?

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