Education Loan & Blocked Account for Germany

Students can avail education loans of up to 1.5 Cr to study in Germany from both public banks and private banks/ financial institutions. An education loan for Germany will cover both tuition fees and Living expenses, along with blocked account deposits. 

All these expenses can be managed by either taking an Unsecured education loan or a secured education loan.

A blocked account is mandatory for students applying for a German student visa. It proves you have enough funds to cover living expenses, usually around €11,208 (₹10–11 lakhs).

If arranging this amount upfront is difficult, you can take an education loan for Germany blocked account. Many banks in India offer a loan for blocked account, making it easier to fund your studies.

What Is a Blocked Account?

It’s a German bank account where the deposited amount is “blocked” and released monthly for:

• Rent and accommodation

• Food and daily expenses

• Health insurance

• Transport and personal costs

How the Loan Works

A student loan for Germany can include the blocked account amount. The bank sends this money to your German account after loan approval.

Benefits

• Covers mandatory upfront expenses

• Reduces pressure on family savings

• Ensures timely funding for blocked account and living costs

Top Lenders

• SBI – Global Ed-Vantage

• Bank of Baroda – Baroda Scholar Loan

• Union Bank of India

• HDFC Credila, ICICI Bank, Axis Bank, Avanse

Eligibility & Documents

• Admission letter from a German university

• Passport and visa documents

• Co-applicant with steady income

• Academic records and KYC

• Collateral if required

Repayment

• Moratorium: Course duration + 6–12 months

• Repayment period: Up to 15 years

Students can get up to 75 lacs education loan without any security for Germany to cover all their expenses including the Blocked account amount.

There are multiple lenders that offer unsecured student loan loans for Germany, And some of them are private banks and the rest are NBFCs.

• ICICI Bank
• Axis Bank
• IDFC Bank
• Avanse 
• Incred
• Auxilo
• HDFC Credila
• EliteScholars 

EliteScholars

EliteScholars is a special initiative by WeMakeScholars, for students who are going to top universities in the US, UK, Germany, and Canada for their higher education in STEM/MBA programs. 

• No Financial Co-applicant is required, but a co-app is required for the namesake.
• Instant sanction on screen with the loan sanction letter issued within 4 working days after the file gets logged in.
• Upto 100% funding on total expenses.

Getting an Unsecured education loan for Germany can be an easy process if you simply follow these steps 

Step 1 - Visit WeMakeScholars and request for a callback or fill a common application form which takes only 2-3 mins.

Step 2 - You will be receiving a call from our Financial officer who will be processing your education loan application. 

Step 3 - Your assigned financial officer will be checking your eligibility for an education loan, and will further inform you regarding the lenders you are eligible to get an unsecured education loan

Step 4 - Thereafter you have to submit the required documents specially made by the assigned financial officer according to your profile in WeMakeScholars secured document portal, from there all the assigned lenders will be able to download your documents to initiate your loan application.

Step 5 - Once the documents are with the lenders your application will be sanctioned within 2-6 days.

Step 6 - You’ll receive the sanction letter from the respective lender which you can sign and initiate the disbursement process to pay the deposit for the Blocked account

There are multiple chances that your education loan application can be either delayed or simply rejected.

• No proper document checklist is provided
• Your application can be ignored if you don’t follow up 
• Lack of transparency 
• Delayed sanction 
• No pre-visa disbursement will be given to pay the Blocked account deposit

Majorly the issue lies in not being aware of the product that is suitable for your profile, and lenders might take advantage of you by exploiting you with a higher rate of interest as you're not aware of better products in the market that are more affordable for your profile.

Rate of interest Negotiation: When it’s an unsecured loan the lenders tend to charge a higher rate of interest based on the profile, but here at WeMakeScholars we negotiate the rate of interest on your behalf and reduce the interest rate for at least 1% - 2%

Experience in typical cases: On a daily basis we deal with thousands of cases that are complex and need to be handled on priority involving a lot of people, and we get the sanction done no matter how complex the case is.

No service charge: WeMakeScholars doesn’t charge a single penny from the student and is absolutely free of cost, and we extend our service till you repay the loan to the lender.

Transparency: The information we provide students regarding the complete loan application process is one of the primary arguments in favor of using WeMakeScholars. Each stage of this process is completely explained by our financial officers. We make sure the students are fully aware of and understand the entire process before we start processing their loans.

Cashback provided: You will be given a cash back on the first payout up to a maximum of INR 3000 as a thank you for utilizing WeMakeScholars to apply for your study abroad loan.

These are the basic documents that are required for unsecured / without collateral education loans for Germany

Application form

A simple loan application form as provided by your financial officer with 2 photographs and your signature.

Student Documents

• Identification proof - Aadhar card, PAN card, and Passport of the applicant
• Admission letter from the University of Germany
• Utility bills - Electricity bill, House tax
• Academic documents - 10th, 12th, Degree/Diploma
• Competitive exams - IELTS, TOFEL GRE, GMAT scorecards 
• Gap certificate in case there’s any gap between your degree
• Experience letter, if there’s any work experience 

Co-applicant Documents

Basic identification documents are a must along with these financial documents

• If Salaried
  • Latest 3 months' salary slips 
  • 6 months' bank statement
  • Company ID
  • Latest 2 years form 16
  • Last 2 years ITRs
• If Self Employed
  • Last 3 years ITRs 
  • 6 months' bank statement
  • Balance sheet, Profit and loss account for the last 3 years
  • Proof of Business address

Other Documents 

• A Letter stating that leftover expenses, apart from the loan amount will be borne by the Co-applicant (The assigned financial officer will be sending you the format of the letter)
• A manifested standard bank statement with both student and co-applicant
• An invoice for expenses such as travel, laptop, etc has to be brought if a loan is being asked for it. 
• Receipt for any transactions made in advance.
• Any remaining loan statements from the preceding year.
• Letter explaining the gap. Sample- on Rs. 100 stamp paper. 
• If relevant, a letter explaining the lack of a co-applicant Income tax return

Repayment period for an unsecured education loan will be 10 years and you need to start paying EMI after the moratorium period.

If, for example, a student borrows Rs. 35 lacs at 11.25% over a period of 10 years, the student will be required to return the loan in accordance with the following repayment schedule:

Apply for up to 1.5 Cr secured education loan to study in Germany with interest starting at 8.5% p.a.

Both public banks and private banks along with NBFCs give secured education loans for Germany.

• State bank of India
• Bank of Baroda 
• Karur Vysya bank
• ICICI Bank
• Axis Bank
• IDFC Bank
• Avanse 
• Incred
• Auxilo
• HDFC Credila

Getting a secured loan can be really hard as it involves a multi-layered process and here’s how you can process it faster

Step 1 Get in touch with your financial officer at WeMakeScholars, by requesting a callback or filling up the common application form.

Step 2 Give your loan details over the call so that your financial officer can analyze your loan profile.

After analyzing the loan profile, your financial officer will connect you with the lender that is offering you the best education loan deal.

Step 3 Submit your documents on the WeMakeScholars documents portal as per the documents checklist provided to you by your financial officer.

Step 4 Your financial officer will carry forward the process from here and will keep updating you about it.

Step 5 Collect your education loan sanction letter from your lender within 15-20 days after you have submitted your documents. 

Pursuing a Master’s degree in Germany is a dream for many Indian students due to high-quality education, low tuition fees, and global career opportunities. However, students need funds for tuition, living expenses, travel, and blocked account deposits. This is where an education loan for Master's in Germany becomes essential.

Why You Need an Education Loan for Germany

Even though most public universities in Germany charge low or no tuition fees, you still need money for:

• Living expenses (rent, food, transportation)

• Blocked account deposits (mandatory for visa approval)

• Health insurance and visa fees

• Travel and other personal expenses

Loan Coverage

A student loan for Germany can cover:

• Tuition fees (if applicable)

• Living and accommodation costs

• Blocked account deposits

• Travel and insurance costs

• Study materials and laptops

Eligibility Criteria

To qualify for an education loan for a Master’s in Germany, you must:

• Be an Indian citizen

• Have an admission offer from a recognized German university

• Maintain a good academic record

• Have a co-applicant (parent/guardian) with a stable income

Documents Required

• Admission letter from a German university

• Academic certificates (10th, 12th, Bachelor’s)

• KYC documents of applicant and co-applicant

• Income proof of co-applicant

• Collateral documents (for secured loans)

• Estimated cost of study

Loan Amount & Interest Rates

• Public banks: Up to ₹1.5 crore, interest 9–10.5%

• Private banks/NBFCs: Up to ₹60–75 lakhs, interest 11–13%
  Interest varies depending on co-applicant income, collateral, and lender.

Repayment & Moratorium

• Moratorium period: Course duration + 6–12 months

• Repayment tenure: Up to 15 years

• Interest during moratorium may be simple or compounded, depending on the lender

Top Lenders for Student Loan for Germany

• SBI Global Ed-Vantage

• Bank of Baroda

• Union Bank of India

• HDFC Credila

• Axis Bank

• ICICI Bank

• Avanse Financial Services

Your application for a student loan may be refused or delayed for a variety of reasons.

• No proper document checklist is provided
• Your application can be ignored if you don’t follow up 
• Lack of transparency 
• No chance for negotiating the rate of interest
• Delayed Sanction 
• No pre-visa disbursement will be given to pay the Blocked account deposit

The main problem is that you may not be aware of the better product for your situation, and lenders may take advantage of you by charging you a higher rate of interest since you are unaware of the better, more cost-effective products available for your situation.

Government-funded: WeMakeScholars is a government-funded organization funded by the Ministry of IT, the government of India.

Experience in typical cases: On a daily basis we deal with thousands of cases that are complex and need to be handled on priority involving a lot of people, and we get the sanction done no matter how complex the case is.

No service charge: WeMakeScholars doesn’t charge a single penny from the student and is absolutely free of cost, and we extend our service till you repay the loan to the lender.

Transparency: Students who contact WeMakeScholars are always fully informed of the process that has been in place, are given several lender options to choose from and are first-hand informed about the loan process. All decisions made in accordance with the profile will be communicated to the student on a priority basis.

Cashback provided: As a thank you for using WeMakeScholars to apply for your study abroad education loan, you will receive a cashback on the first payout up to a maximum of INR 3000.

All the documents that are required for an unsecured loan are required for a secured loan as well. For secured loans the co-applicant need not have ITRs, a basic income certificate is acceptable, and here are the additional documents of collateral that you will need to pledge

Additional Documents for Secured Loans

• Property Title Deed
• Registered Sale Agreement / Gift Deed / Will
• Original registration receipt for the above agreement
• Allotment Letter By Municipal Corporation / Authorized Govt. Authorities like MHADA, CIDCO, HUDA, DDA, JDA, GIDC etc. (if applicable)
• 30 years link document or Previous chain of sale deed establishing title or EC is required. It is a 30 years track record of who sold the property to whom in the last 30 yrs. If you own the property for more than 30 years, then the previous sale deed is enough.
• The latest property tax bill and Latest electricity bill bearing the same address
• Copy of municipality-approved building plan or plot layout.

Note: Depending on the geographic location of the collateral some additional documents are required and to know the required extra documents, request a callback or fill the common application form at WeMakeScholars 

Repayment period for secured loans in Germany is 15 years and has a moratorium period of course duration plus one year

This would be your payback schedule, for instance, if you took out a loan for 24 lacs with an interest rate of 8.5% and a 10-year repayment period.

Germany consists of more than 300 public universities where the tuition fee is negligible and only yearly contributions were to be paid which are quite low. On the other hand there are private institutes that do charge tuition fees.

Expenses Covered

• Tuition fees
• Blocked account deposit
• Living expenses for the rest of the course duration
• Travel + Insurance 
• Miscellaneous

Blocked Account

A blocked account is like a saving account where you must deposit 1 year's living expenses which are 11,208 Euros 10 lacs in INR. Students need to do this before they apply for Visa as this is a pre-requisite to apply for a Visa. A blocked account is compulsory for a student visa. Students can open a blocked account in Kotak Mahindra as they have tie up with Deutsche bank in Germany or directly in German banks like Expatrio or Fintiba.

The savings will be disbursed every month while you start living in Germany. You will receive 934 Euros each month, approximately 83,000 to manage your expenses. However, the catch is that most banks do not provide Pre-Visa disbursement for the blocked account.

Pre-Visa Disbursement for a Blocked Account

Banks need a Visa for disbursement of the loan and students need disbursement to obtain a Visa. Hence, the students are stuck in a never-ending loop of disbursement and visa. That is when WeMakeScholars steps in as a savior. WeMakeScholars financial officer talks to the bank employee and makes sure to obtain pre-Visa disbursement for the blocked account. Hence, another important reason for you to not go through banks directly but rather, process your education loan through WeMakeScholars. Know more about the disbursement for blocked through the following video.

SBI Education Loan for Germany

SBI offers a secured loan of up to 1.5 Cr to study for Germany with a moratorium period of course duration plus one year and the interest charged ranges from 9.5% to 10.5% with 15 years of repayment period.

During the moratorium period, there’s no need to pay any EMI as the interest during the moratorium period will be added later and in case if you wish, you can pay simple interest during the moratorium period. 

Education Loan for MS in Germany

MS in STEM/MBA courses are most preferred for Education loans, and banks/lenders fund both secured and unsecured loans where the rate of interest for a secured loan is around 8.5% to 10% and 10.5% to 12% for an unsecured loan. 

The challenge lies in getting to know which bank gives the least rate of interest on the best terms, and the way to choose the best bank is by visiting WeMakeScholars and requesting a callback or filling out the common application form, and a professional financial officer will be assigned to process your loan application.

Germany is known for its scholarships as most of the universities have no tuition fee at all, and the percentage of scholarship offered depends on the students profile, and here is a list of some scholarships that are offered to most of the international students  

The Deutschlandstipendium at German Universities 2022
British Council Scholarships for Women in STEM, 2022
Ritchie-Jennings Memorial Scholarship Program, 2023
BeArt Presets Academic Scholarships 2022-2023
Developing Country Scholarships LDC/LLDC 2022

Scholarships are awarded to only 2%-3% of the students so we recommend you to keep student loan as a backup so you wouldn’t lose the opportunity to study in Germany in case you missed the scholarship. 

And the best place to check your chances for an education loan is by visiting WeMakeScholars and  requesting a callback or filling a common application form. 

Each bank be it public or private they has a list of universities for each country, and those universities are ranked accordingly. And all universities are in the banks list with respect to their ranking, and to know whether your university is in the list of banks or not, just get in touch with the financial officer of WeMakeScholars by requesting a callback or filling out the common application form.