Education Loan for Studying in Germany: Everything You Need to Know

6 mins read64.1K Views 15 Comments
Rahul Singha
Study Abroad Expert
Updated on Mar 15, 2021 18:23 IST

Education Loan for Studying in Germany

Education Loan for Studying in Germany: Low tuition fees, great standard of living, excellent quality education, safety, and security are some of the reasons that make Germany an attractive study destination for all students around the world.  There is something for everyone in Germany. Whether it's the big city buzz, famous architecture, historic sights, packed shopping streets or delectable cuisine, apart from being a major academic hub, Germany is also a renowned tourist destination worldwide.

Home to great minds such as the famous physicist, Albert Einstein, and philosopher, Karl Marx; Germany is known globally for its live music, castles and a country with deep ties to World War II. International students opting to pursue their higher education can expect to experience cultural diversity, friendly natives and a high quality of education. A major education favorite, students would be pleased to know that the majority of 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. The living costs in Germany is considered moderate, thus putting less financial pressure on Indian students wanting to study abroad.

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To make 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 ease 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 the official website of universities or Germany is home to a world-recognized education system, excellent industry interface, an innovative and research-based environment and multicultural prospects that make the country an excellent choice for students wanting to study abroad.

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Process for Applying For an Education Loan

Procuring an education loan for Germany is as simple as getting an education loan for any other study abroad destinations. The process is the same, with simple modifications. Universities in Germany induct students twice in a calendar year, January and September. Once students have secured admission to the university of their choice, their next big hurdle would be to arrange the funds required for their educational expenses. The cost of studying in the country is extensively cost-effective, with students having to pay no tuition fees for its undergraduate courses and rather minimal tuition fees for its graduate courses.

Students and families looking to avail the student loan would be happy to know that in India numerous Banking and Non-Banking institutions offer education loans at a low rate of interest to commendable students to pursue their higher education overseas. Applying for a student loan has evolved since its introduction and students and their parents looking to apply for the Loan can do so easily. However, before applying for the loan, there are certain particulars that must be kept in mind. Sometimes to acquire a loan may require a collateral as security but this is strictly on a case to case basis. In most of the cases, there would usually be a co-applicant which could be your parent, sibling, in-laws or spouse.

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Eligibility criteria to apply for an education loan to study in Germany

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

List of documents required for an education loan to Germany

Nationalized banks such as State Bank of India (SBI) provides Education Loan to deserving students who wish to go to Germany for higher studies. However, before the bank is able to process the loan amount, there is a list of documents that need to be furnished by the borrower. These include:

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

Expenses covered under the loan include

The university, at the time of admission, would provide you with documents 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 are other expenses that students come across during their stay in the country, and which are taken care off under the loan amount. However, the loan sanctioned by an institution would be solely for education purposes and not cover personal expenses. Candidates can visit our website to apply to India's top education loan providers through Shiksha Study Abroad. The loan amount sanctioned 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 would be required to successfully complete the course

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Blocked Account

Education in Germany is a very serious affair and they have everything calculated to the last cent. Every year, according to the prevailing economic conditions as well as the relevant fee structure, the university would request that a monthly sum is provided for the student to facilitate his living expenses in the country as well as completing his education, This is called a Blocked Account amount. This usually varies from state to state and ranges from €931 per month. This would include your accommodation, living expenses, and even travel pass costs.

Once students reach Germany, they are required to open a Student Loan Account with a local bank where they are required to deposit the ‘Blocked Amount’ for the entire calendar year. Every month they would be allowed to withdraw the sanctioned monthly amount to cover their monthly expenditures. This is a mandatory practice applicable to all international students who choose to pursue higher education in Germany.


As mentioned earlier, international students will have the opportunity to work part-time to ease their living expenses. International students would be eligible to work 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 to look for a job that corresponds to their area of qualification. During these 18 months, they can take up any kind of employment to support themselves and fund their job search.

Students who have applied for an education loan from a nationalized bank are required to start the repayment process after the completion of the course period and moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier). However, students should understand the moratorium time varies for different loan-providing institutions. Candidates looking for assistance with university admissions can get in touch with our Shiksha Study Abroad Counsellors on our website. 

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About the Author
Rahul Singha
Study Abroad Expert

With over 8 years of experience in overseas education, Rahul Singha has been previously associated with prominent education houses. He is also responsible for keeping a sharp eye on education policies of major study... Read Full Bio




Bhavya Malhotra

4 months ago

Whats the details of interest on the loans

Reply to Bhavya Malhotra


Rahul SinghaStudy Abroad Expert

a month ago

Hello Bhavya. That would entirely depend on the bank you are taking the loan from. Would request that you check with your preferred bank and their rate of interest. You can also apply for an education loan through Shiksha by visiting:


Edits Chandan

a year ago

Which city is cheap and which public universities don't require to pay tution fee and all about for course

Reply to Edits Chandan


Rahul SinghaStudy Abroad Expert

a year ago

Hello Edits. Public Universities do not charge a tuition fee. However, students are required to pay an administration fee at the start of every semester/academic year. As far as the living expense is concerned, you would be required to keep €10,332 for an entire year or €861 for a month.

Sir how can i get the loan if my university won't be having any tution FEE? i wanted loan for blocked amount + travel + exam fee. I needed a total of 13 lakhs! SBI said they give loans for tution fee? What can I do now?

Reply to Abhishek Mishra


Rahul SinghaStudy Abroad Expert

a year ago

Hello Abhishek. This could be a problem when you are applying from government banks. As they only provide education loans towards tuition fees. However, you could look into HDFC Credilla and Non-bank financial institutions. They will provide education loans towards basic university amenities, living



Mansi Mahajan

a year ago

Hlo sir, study loan agr lena ho Germany ke liye to living expense hota hai usme ya ni

Reply to Mansi Mahajan


Rahul SinghaStudy Abroad Expert

a year ago

Hello Mansi. Apka study loan, tuition + living expenses cover kar sakta hain. .



a year ago

Sir, I want educational loan for blocked account for Germany.Is it compulsory to borrow for two year? Or at a time for one year.Is Bank of baroda will sanction for blocked account from educational loan? Thanks

Reply to Rajesh


Rahul SinghaStudy Abroad Expert

a year ago

Hello Rajesh. The Blocked Account amount is currently fixed at €10,332 for an entire year or €861 for a month. You are required to show funds for your entire duration of stay. Yes, any Indian bank would sanction you an education loan provided you agree to their terms and conditions.

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