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Student Loan in Germany

Student Loan in Germany – All you need to know

by Ankur Gupta
Reading Time: 5 minutes

Student Loan in Germany – Students in India who wish to study abroad often face the financial barrier of high college fees and overseas living expenses. But Germany is one study abroad destination which provides quality education at affordable prices. Engineering colleges of Germany are famous across the world for providing quality education and placement opportunities. Similarly, students of MBA in Germany are also absorbed by elite corporate institutions. While the cost to study in Germany is lower when compared to USA, UK, Canada, Singapore, etc., the cost of living in Germany is not. Scholarships in Germany also offer only partial coverage for academic and living expenses. Loans to study in Germany for Indian students remain the best option for them to fund their education.

Student Loan in Germany – Cost of Studying in Germany vs. Cost of Living

Germany is home to over 25 universities that feature in the top 500 of the latest QS World Ranking 2019. Universities in like the Technical University of Munich, Ludwig-Maximilians-Universität München, KIT, Karlsruhe Institute of Technology and other 5 universities are listed in the top 100 QS Rankings. This makes Germany one of the best options to study abroad for Indians. The German government norms keep the cost to study at these universities low while the cost of living in Germany still stays up.

As most of the education loans in India only cover academic expenses, getting the right loans to study in Germany for Indian students is tricky. Here we have provided you with a complete guide to find a student loan in Germany.

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Cost of studying in Germany – Student Loan in Germany

Just like in other foreign countries, students willing to study in Germany have to provide proof of funds to stay there. The BAMF – Bundesamt für Migration und Flüchtlinge or the Federal Office for Migration and Refugees in Germany overlooks the Student Visa Process in Germany. The laws there require students to show proof of at least €750 per month or €8640 per year for getting a German student visa.

Students can deposit this sum in German Blocked Bank Account before applying for the student visa. This amount helps you to cover additional non-academic expenses like accommodation, meals, commute and personal expenditures. Indian banks provide education loan for German Blocked Bank Account to help the students get a German visa. However, the same education loan amount can be directly considered as proof of funds to get past immigration and study in Germany.

Average Cost of Studying in Germany – Academic Expenses

Cost of Studying in Germany for India Students
Academic Level Cost in Euros (€) per semester (approx.) Cost in Indian National Rupees (₹) per semester (approx.)
Undergraduate Courses €250 to €600 ₹20,000 to ₹46,000
Post-Graduate Courses €300 to €700 ₹23,000 to ₹55,000
Doctoral Courses €300 to €500 ₹23,000 to ₹40,000
Average Award Amount of Scholarships in Germany €400 per year ₹31,000 per year

Overseas Scholarship Programs for Indians to study in Germany provide a percentage of all these expenses. Most of the scholarships in Germany emphasize on lab-based and research courses. Thus, students have but one option to get an international education loan in Germany to cover their expenses. The total average cost of studying in Germany falls close to €11,000- €15,000 (₹8,50,000- ₹12,00,000) per year. Loans to study in Germany for Indian students generally cover up to 85% of this amount. Some Non-Banking Financial Institutions (NBFCs) in India also cover up to 100% of the cost to study in Germany.

Student Loan in Germany – Top International Student Loan Providers

It’s only beneficial that education loans in India to study abroad up to ₹7,50,000 (7.5 lakhs) are provided without any collateral. International Scholarships for Indian Students to study in Germany generally cover 20% to 80% of the academic expenses. This way students only have to manage some portion of their overall cost of studying in Germany. However, only some banks in India provide loans for non-academic expenses to study abroad. Additionally, Indian banks have a limited list of approved universities in Germany. These factors make it tough for students to manage their living expenses in Germany. Here is a list of top providers for a student loan in Germany, which helps mitigating this financial concern.

Student Loan in Germany- List of Top Study Abroad Loan Lenders

Bank Name Quantum of Education Loan Interest Rate Expenses Covered (excluding academic fees)
SBI Edvantage Education Loan ₹10.00 Lakhs to ₹1.25 Crores 10.80% to 12.50% Limited living expenses covered – accommodation and travel expenses only
HDFC Credila Study Abroad Loan ₹10.00 Lakhs to ₹50.00 Lakhs 13.00% to 16.00% Up to 100% living expenses
Avanse Student Loans ₹4.00 Lakhs to ₹1.25 Crores 12.00% to 16.00% 75% of living expenses (capped at 20% of the sanctioned loan amount)
ICICI Bank Education Loan ₹4.00 Lakhs to ₹36.00 Lakhs 11.25% to 14.25% Insurance + Travel + Accommodation covered
PNB Udan Education Loam ₹20.00 Lakhs to ₹1.00 Crore 10.35% to 12.25% No living expenses covered

ALSO READ: STUDY ABROAD EDUCATION LOAN IN INDIA- TOP PROVIDERS

Special Student Loans in Germany – BaföG for International Loans

Indian students in Germany can avail federal student loans based on certain citizenship and resident status criteria. Bundesausbildungsförderungsgesetz or the BAföG loans are financial aid provided to students as interest-free loans to pay for their education. Indians may apply for such a student loan in Germany if:-

  • One of their parents is working in Germany for more than 3 years
  • They have attained a German Education and stayed in Germany for more than 5 years
  • They have attained a graduation or post-graduation degree from Germany while staying in Germany for more than 3 years in the last 6 years
  • If they are working in Germany with annual income more than €48,000 (for 3 years or more)
  • If they have a permanent residence in Germany and are working in the country with annual income more than €48,000

For some universities in Germany, Bafög for international students cannot be clubbed with scholarships in Germany. Students should confirm with their international admission office before placing a federal loan request.

Source: Federal Ministry of Education and Research, Germany

Thus, students from India who are studying in Germany under the employment benefits or are wards of diplomats/NRIs may apply for Federal Student loans in Germany. Other Indian students who do not fall in any of these categories for Study Abroad Admissions in Germany, have to rely on bank loans or scholarships in Germany.

Loans to Study in Germany – Scholarship Adjustable Loans

Every International Student from India applying for a study abroad loan has to pay margin money to show financial viability. A student loan in Germany already does not cover the hefty living expenses. Students find it very difficult to pay for their living expenses and the margin money, especially if they don’t have a scholarship.

Education Loan experts are institutions which help students in finding a way around this concern. Student loan experts like Buddy4Study negotiate on behalf of students to get lower interest rates. These organizations can help students to find a student loan in Germany which covers more living expenses than academic expenses. They can also help students get education loans where margin money can be adjusted with a scholarship award. Studying in Germany is a financial and educational treat, but only if students balance their expenses well. With all the information listed above, we hope that you’ll be able to Study in Germany with ease. Happy learning!

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