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

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Rahul Singha
Study Abroad Expert
Updated on Mar 15, 2021 18:23 IST

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 multi-cultural 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 purpose and not cover personal expenses. 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 fees 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 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.

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.

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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



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


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




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


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.

Hello. I want to study in Germany with mba can i get loan?
And when i have to repay to the bank?

Reply to Anubhav Singh


Rahul SinghaStudy Abroad Expert


Hello Anubhav. Thank you for writing in. Most banks provide education loans for a number of courses including pursuing an MBA. However, factors such as payback period, interest and other terms and conditions are very bank-specific and differ from one bank to another. Would request you to approach...Hello Anubhav. Thank you for writing in. Most banks provide education loans for a number of courses including pursuing an MBA. However, factors such as payback period, interest and other terms and conditions are very bank-specific and differ from one bank to another. Would request you to approach a bank close to you for more information on the same. You can also check out our SBI Education Loan guide here:

will my educational loan to study in Germany cover the entire expenses while i'm there including the 10k euros that i should deposit in the blocked account ?.

Reply to Gokul Vidyadharan


Rahul SinghaStudy Abroad Expert


Hello Gokul. Ideally, the loan amount should cover both your tuition fees along with your living expenses. However, the loan amount being sanctioned would determine whether the funding is enough to cover both elements or not.

Hello sir
Can any banks can provide collateral free education loan if they provide how much they provide?

Reply to gaddipati srikanth


Rahul SinghaStudy Abroad Expert


Hello Gaddipati. The best person to answer this would be your bank. Kindly check this with your bank to understand what other methods of loan procurement are followed by financial institutions.

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