Education Loan for Germany: How to Get a Student Loan in Germany for International Students? Image
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Education Loan for Germany: How to Get a Student Loan in Germany for International Students?

Yocket Editorial Team
5 mins read

Germany is one of the top choices for students wanting 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 it sometimes gets tough to fill the gaps with that earning. To avoid such situations, it is better to be safe and opt for an education loan. They provide opportunities for students 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. In this blog we tell you everything you need to know about education loans.


Table Of Contents:


  1. Why do you need a student education loan for Germany?

  2. What is the Cost of Studying in Germany?

  3. What Is The Eligibility Criteria To Secure An Education Loan for Germany?

  4. What Documents Are Required To Get An Education Loan?

  5. How to apply for an Education loan for Germany?

  6. Which are some of the Indian Banks that Provide Education Loan for Germany?

  7. What Expenses are Covered Under Your Germany Education Loan?

  8. Repayment of the Education Loan

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

  10. Frequently Asked Questions About Student loan for 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.


SUGGESTED : Different ways to Finance your education in Germany


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

Tuition Fee = 0-3000 EUR

Other Fee = 1200 - 4200 EUR

Cost of Education at Private Universities

Tuition Fee = 20,000 - 40,000 EUR

Other Fee = 1200 - 3000 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


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.


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 in India:


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 Documents Are Required To Get An Education Loan?


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


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.


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 Nationalized 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.


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


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


The other option for aspirants is to take the student loans in Germany for international students. One of the options 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:


  1. Students typically must have been a resident in Germany for 5 years.

  2. You are permanently residing in Germany and at least one of your parents has German or another EU nationality

  3. You are permanently residing in Germany and your spouse or partner has German or another EU nationality

  4. 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

  5. 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.


Frequently Asked Questions About Student loan for Germany


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

Students can avail the BAföG loan if they can provide enough proof about their residentship in Germany. If you can prove that you will be able to repay the loan and will continue staying in Germany, you will be able to take a loan in Germany.


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

The cost of studying in Germany ranges anywhere between 11,000 - 16,000 EUR even if you are studying at a public university. So, you might have to loan anywhere between 8L to 12L to cover your cost.    


  1. Do they accept students with education loan in Germany?

Many international students study in Germany through an education loan. Thus, getting an education loan and paying it off during a job wouldn't be difficult.


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

Yes, many Indian banks cover your Germany blocked amount expense.


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.

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