Loans for Germany – All you need to know!

Loans for Germany – All you need to know!

Germany is the one-stop destination for students from all over the world for education. Germany has a lot to offer in terms of academics, universities here do not charge tuition fees, living cost is affordable and has language fluid courses and programmes. Here, we shall discuss the loans for Germany.

Managing finances while studying here might be a tedious task for many students. Germany offers many educational loans and scholarships for eligible students.

Loans for Germany

International students opting to pursue their higher education can expect to experience cultural diversity, friendly natives, and high education quality. A significant education favourite, students, would be pleased to know that most public universities in Germany have had their tuition fees waived off. The students would be required to pay only an administrative fee at the beginning of each term. Germany’s living costs are considered moderate, thus putting less financial pressure on Indian students to study abroad.

  • Study in Germany

To make a living even further affordable, international students will also have the opportunity to work part-time to ease their living expenses. International students are eligible to work 20 hours per week. This part-time work facility will not only help them relax their living expenses but also allow them to gain relevant work experience in their field of interest. As with most universities, international students can also benefit from the various scholarship programmes listed on universities’ official website or

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Germany is home to a world-recognized education system, excellent industry interface, an innovative and research-based environment and multi-cultural prospects that make the country a perfect choice for students wanting to study abroad.

How to apply for a student education loan?

Getting a study abroad loan in Germany is as simple as getting a study abroad loan in any other country. The procedure is the same, with a few minor differences. In Germany, students are admitted to universities twice a year, in January and September. After students have been accepted to the university of their choice, the next major challenge is to raise the necessary funds.

Studying in the country is extensively cost-effective, with students having to pay no tuition fees for their undergraduate courses and relatively minimal tuition fees for its graduate courses.

Students and families interested in obtaining a student loan will be pleased to learn that numerous banking and non-banking institutions in India offer low-interest education loans to deserving students who wish to pursue their higher education abroad.

However, before applying for the loan, certain particulars must be kept in mind. Sometimes, acquiring a loan may require collateral as security, but this is strictly on a case to case basis. In most circumstances, there would usually be a co-applicant which could be your parent, sibling, in-laws or spouse.

Eligibility criteria

There are some eligibility criteria to apply for an education loan to study in Germany:

  • The student is required to be a citizen of India.
  • Students must have obtained admission to a university/ course recognised by the funding institution and eligible for a grant.
  • The student must have attained 18 years, or his/her parents should apply for the loan.
  •  The applicant must have secured admission to a job-oriented course. 

Documents required for the education loan

Nationalised banks such as the State Bank of India (SBI) provides Education Loan to deserving students who wish to go to Germany for higher studies. However, before the bank can process the loan amount, the candidate must provide a list of documents.

These include:

  • Letter of admission from the college/University
  • The loan application form filled out in full
  • Documents on the cost of studies
  • Identification proof
  • Residence proof
  • Guarantor/co-borrower’s/student’s proof of income
  • PAN details of the borrower
  • Guarantor/co-borrower’s/student’s bank statements
  • Guarantor/co-borrower’s/student’s statement of assets

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Expenses covered under this loan

The loan sanctioned by an institution would be solely for educational purpose and not cover personal expenses. The loan amount approved would take care of:

  • Tuition fees (if any)
  • Accommodation expenditures
  • Caution deposit money (security)
  • Travel expenses 
  • Study tours and project work during the academic year
  • Purchase of books, laptop, and stationary
  • Other reasonable expenses that one would require to complete the course

Repayment process

Students who have applied for an education loan from a nationalised bank must start the repayment process after completing the course period and moratorium period. However, students should understand the moratorium time varies for different loan providing institutions.

Students, while studying, have an opportunity to work side-by-side for 20 hours per week. Moreover, after the completion of their total course duration, students have the option of applying for an 18-month Residence Permit for a job corresponding to their area of qualification. During these 18 months, they can take up any employment to support themselves and fund their job search.

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We have answered some questions here for your help.

Q1. Can I get a loan to cover blocked Account money?

Ans.  Education loans can be used to cover expenses related to education, such as tuition fees, books, living expenses, and other such expenses as transportation costs, etc. You will need to contact your education loan provider for the same.

Q2. Can I get a mortgage in Germany?

Ans. Mortgage lenders in Germany allow you to borrow up to 100% of the property. Mortgages typically last 25 to 30 years, with a fixed interest rate for the first few years.

  • Study in Germany

Q3. How can I get a loan in Germany?

Ans. Requirements for getting a Loan in Germany

  • A good SCHUFA score., i.e. good credit rating
  • A residence permit (preferably permanent), or at least a resident permit or Visa that covers the entire period of the loan
  • Regular and stable income: You should be able to provide your salary slips.

We truly hope we were able to resolve any queries you might have had.

Good luck!