Education Loan For Germany
Germany is known for its world-class education, top universities, affordable tuition fees, and top career opportunities. Even though Germany has no tuition fees, living expenses, and other costs can cost hundreds of thousands of euros.
Are you planning to study in Germany? Securing the right financial support for your study abroad in Germany is very important, and we’re here to help you with the same. With the right financial support, studying in Germany can be achieved without any hassle. In such situations taking an education loan might be the perfect solution. Let’s learn everything you need to know about education loans in Germany!
Cost of Studying in Germany
Studying costs may vary depending on your chosen university, program, and specialization.
| Particulars | Average Expense Monthly |
|---|---|
|
Tuition Fees
|
€3,000 – €20,000
|
|
Utilities
|
€200 – €493
|
|
Phone Plans
|
€10 – €39.95
|
|
Internet
|
€45
|
|
Groceries
|
€200 – €300
|
|
Transportation
|
€80 – €90
|
|
Health Insurance
|
€150 – €500
|
Types of Education Loan for Germany
Secured Loans
Also known as collateral loan, a secured loan is the type of loan where the borrower offers an asset such as a house, non-agricultural land, investment accounts, fixed deposits, or more against the loan amount. Secured loans often have lower interest rates due to the collateral.
Unsecured Loans
Also known as no collateral loan, an unsecured loan does not require any type of collateral. The loan is generally given based on the student’s credit history, co-applicant, and other factors. The interest rate is often higher than the secured loan as collateral does not support it.Popular Lenders Offering Education Loans for Germany
Several private & public banks, NBFCs, and government schemes offer education loans for Germany. These loans can be divided into collateral & no-collateral loans, interest rates, and more.
|
Bank |
Interest Rate |
Loan Amount |
|
State Bank of India (SBI) – Global Ed-Vantage Scheme |
9.65% – 10.15% |
|
|
Bank of Baroda (BOB) – Baroda Scholar Loan Scheme |
Starting from 9.70% |
|
|
Axis Bank – Abroad Education Loan Scheme |
13.70% – 15.20% |
Starting from INR 50,000 |
|
Bank of India – Star Education Loan Scheme |
10.85% – 11.05% |
Up to INR 1.5 crores |
|
Bank of Maharashtra – Model Education Loan Scheme |
8.10% PA |
INR 20 Lakhs |
|
Avanse – Study Abroad Loan |
14.55% |
Starting from INR 1,00,000 |
|
ICICI Bank – Abroad Education Loan |
9.50% – 14.25% |
Up to INR 3 crores |
|
HDFC Bank – Education Loan for Foreign Education |
8.64% – 9.55% |
|
Eligibility Criteria for Education Loan for Germany
Fulfillment of the eligibility criteria is very important for a successful loan application. The eligibility criteria may differ from one bank to another. Here are the basic eligibility requirements for education loans in Germany:
- Applicant must be an Indian citizen
- Applicant must be above 18 years of age (if the applicant is not 18 years, then they must have a parent or guardian who can apply for the loan on their behalf)
- Applicant must have gotten admission from a recognized German university
- Applicant must have money in their blocked account, which is €992 per month or €11,904 per year
- Applicant must have a co-applicant (in case of unsecured loan) or collateral (in case of secured loan)
Documents Required for Education Loan for Germany
Having your documents in order is essential to get your loan disbursed quickly. Ensure you have all the documents while applying for your study abroad education loan. Given below is the list of common documents required for education loans in Germany:
- Duly filled loan application form
- Letter of acceptance from a German university
- Academic transcripts
- IELTS, GRE, GMAT, TOEFL, test scores
- KYC documents such as Aadhar card, Driving license, passport, etc
- Bank statements for the last 6 months of Guarantor / Student / Co-applicant
- Address proof
- Income proof
- Passport size photographs
How do you apply for an education loan in Germany?
Obtaining an education loan involves several steps. Researching and comparing loan options from the lenders takes time, so you should apply for a loan as soon as you have received your acceptance letter from the university.
Comparing lenders, starting early, preparing documents, and checking eligibility criteria can be overwhelming. That’s where Nomad Credit comes in. Our top experts and counselors are well experienced and will assist you through your application process, visa and SOP guidance, and university admissions process at no cost. However, here’s a general idea for the loan application process:
- Visit your preferred bank or check their official website to find out the types of loans they offer
- Try to understand the loan options and compare them thoroughly
- Fill out your loan application with all the required information and documents
- Wait for your loan disbursements
Frequently Asked Questions
Can I get an education loan to study in Germany?
You can apply for an education loan from various banks, financial institutions, or lenders to study in Germany. Ensure you meet all the eligibility requirements before applying for an education loan to study in Germany.
Can I get a 100% loan to study abroad in Germany?
You can get a 100% loan to study abroad in Germany. Several loans cover all expenses, such as your tuition fees, living expenses, and more.
Can I get an education loan for my blocked account in Germany?
You can get an education loan for your blocked account in Germany. The blocked account is a bank account for international students to prove they have sufficient funds to live in Germany.
Are there any tax benefits for education loans in Germany?
You can get tax benefits on your student education loan in Germany. As per Section 80E of the Income Tax Act of 1967, you can get a deduction on the interest paid on the Education loan.
How much of a loan can I get to study in Germany?
You can avail of education loans for Germany ranging from INR 10 lakhs to INR 1.5 crores. However, the loan amount will depend on the bank and the type of loan you are applying for.
