A Guide on Student Loan for Germany

Germany is a top choice for international students because many universities have low or no tuition fees. But you still need money for living expenses, health insurance, and other daily costs. That’s where student loans can help.

Germany offers a great destination for study abroad aspirants. A world-recognized education system, excellent industry interface, an innovative and research based environment and multi-cultural prospective add to the many reasons why Germany is an excellent choice for study abroad. And yet student are wary of the same. The worry is the same…with no or very little tuition fee, how easy would it be to acquire a student loan for Germany? Well, we answer… it’s simple and quick.

While, there is no tuition fees at public universities in Germany, students still need to cover living expenses like rent, food, transportation, and health insurance. For many, managing these costs of living in Germany can be difficult—especially for those coming from abroad.

To help with these expenses, there are several student loan options available in Germany. These loans are designed to support both local and international students during their studies. In this guide, we’ll explain the different types of student loans in Germany, how to apply, who is eligible, and what students from countries like India can do to fund their education.

Student Loans for Indian Students Studying in Germany

If you are an Indian student planning to study in Germany, you can also get an education loan from Indian banks or financial institutions.

1. ICICI Bank Germany Education Loan

• Loan amount: Up to ₹3 crore.
• Covers: Tuition, living costs, travel, insurance.
• Tax benefit: Save tax under Section 80E for interest paid.

2. Study Loans from Other Indian Banks and NBFCs

With Collateral (You give something like property as security)

• State Bank of India (SBI): Up to ₹1.5 crore | Interest: 10.65%–11.50%
• Union Bank of India: Up to ₹1.5 crore | Interest: 9.55%–10.80%

Without Collateral (No property or security needed)

• ICICI Bank: Up to ₹50 lakhs | Interest: 10.85%–12.50%
• Axis Bank: Up to ₹40 lakhs | Interest: 11.00%–11.50%
• HDFC Credila: Up to ₹25 lakhs | Interest: 12.00%–12.75%
• Prodigy Finance: Up to $100,000 | Interest: 12.00%–14.00%

How to Get Student Loans for Germany?

Student loan for Germany is as simple as getting a student loan for any other study abroad destination. The process is the same, with simple modifications. Though every student would find a more personal way of getting one, here is a step by step student loan process for Germany.

1. Decide on the amount of Loan required

Taking a loan starts with understanding how much money would be needed by you. With Germany, you need not worry much though. The university in Germany you would apply to would provide you with a detailed list of expenses. These expenses would include the university fee due as well as the minimum monthly expenditure which would be required.

Education is Germany is a very serious affair and they have calculated everything to the last cent. Every year, according to the economic conditions as well as the relevant fee structures, the university would request that a monthly sum be provided for the student to facilitate his living in the country as well as procuring that education. This usually varies from state to state and ranges from €685 - €750 per month. This would include your accommodation, living expenses and even travel pass costs. This document can be easily used to calculate the amount of loan required by you.

2. Understand which banks provide loan for that particular institute.

Usually, banks have a list of certified and recognized educational institutions. Its readily available and since most of the universities in Germany are state run university, the recognition with the bank is less of a hurdle. Hence, even in this step, Germany gains a point above the rest.

3. Apply for the student loan

Subject to the processes of the bank you are applying to, you can start your student loan application. Sometimes the student loan may require collateral but this is strictly on case to case basis. In most of the cases there would usually be a co-applicant which can be your parent, sibling, in-laws or spouse.

4. Submit all the necessary documents

The bank would require a lengthy list of documents which are essentially your academic record transcripts, the admission letter from the university, your personal identification documents like an address proof/ identity proof, a copy of your pan card. Once approved, the bank would also require the fee demand letter.

The university, at the time of admission would provide you with the document that would clearly mention the fee as well as the entire amount required for completion of the intended course.

Please note that while universities in Germany do not charge a tuition fee, there is other fee like travel fee, accommodation fee in Germany and other infrastructural fees which are computed. These fees, though not much, are covered under the applicable heads of a student loan for different banks. So need not worry for the same.

5. Get the loan and take off

It is as simple as any. The bank would normally provide you with a cheque/ demand draft. It would be worth mentioning here that a recent shift in policy of Federal Ministry of Education and Research, Germany (BMBF) which regulates all educational policies as well as student loans in Germany, you might be subjected to a locked student loan account in Germany.

It is rather simple. Once you reach Germany, you would be required to open a Student Loan account in a local bank. You can simply deposit the cheque with the bank in Germany. This account may or may not be locked and would release a stipulated sum every month for your monthly expenses. Whether or not your account would be locked is strictly on case to case basis.

Documents You Will Need to Get Study Loan in Germany

• Passport and ID proof

• 10th, 12th, and graduation mark sheets

• Admission letter from the university in Germany

• University’s fee structure

• Income proof of co-applicant (for Indian loans)

Whichever it might be, the verdict is clear…getting a student loan for Germany is easy enough. So when thinking Germany, think with no worries.

You can also ready about Student Loans in our Student Loan Guide.

All the best!

Get in touch with India’s top-rated loan providers and apply for an education loan through Shiksha Study Abroad

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