Education Loan for Germany

✓ Interest rate starting at 8.50% p.a.

✓ Maximum loan amount of 1.5 Cr

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Table of content

  1. Unsecured or without Collateral Education loan for Germany
  2. Banks that Offer Unsecured loan for Germany
  3. How to get an Unsecured Loan for Germany
  4. Disadvantages of going Directly through Banks for an Unsecured Education Loan
  5. Why Choose WeMakeScholars for an Unsecured Education Loan?
  6. Documents Required for Education loan without Collateral for Germany
  7. Repayment Plan for Unsecured Loans in Germany
  8. Secured or with Collateral Education Loan for Germany
  9. Banks that offer Secured Loan for Germany
  10. How to Get Secured Education Loan for Germany
  11. Disadvantages of going Directly through Banks for a Secured Education Loan
  12. Why Choose WeMakeScholars for a Secured Education Loan?
  13. Documents Required for Education loan without Collateral for Germany
  14. Repayment Plan for Secured Loans in Germany
  15. Expenses Covered for Education Loans in Germany
  16. Special Education Loan Schemes for Germany
  17. Scholarships for Studying in Germany
  18. Universities Recognized for Education Loan in Germany
  19. FAQ's
  20. Need Help? Ask Here!

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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.

 

Unsecured or without Collateral Education loan for Germany

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

Loan Parameters

Details

Loan Limit

Upto 75 lacs

Expenses covered

Tuition fees

Living expenses / Blocked account

Travel card, Insurance Miscellaneous expenses 

Eligible courses

Bachelor's and master's degrees in STEM and management courses 

Certification courses of PG and UG

Interest rate

 10.5% to 12.5% per annum

Moratorium Period

Course duration plus 6 months 

Repayment Duration

10 years 

Repayment policies

Simple interest or partial simple interest  is charged during the moratorium period

Eligibility Criteria

Admission in a German university

Valid passport 

Co-applicant Salary

The salary of the co-applicant should start from 4.5 lacs to 6 lacs per annum, But this can be negotiated according to your profile.

Banks that Offer Unsecured loan for Germany

There are multiple lenders that offer unsecured 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.
Take the first step towards your education abroad with a call to us

How to get an Unsecured Loan for Germany

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

Disadvantages of going Directly through Banks for an Unsecured Education Loan

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.

Empower your education abroad aspirations today with our help

Why Choose WeMakeScholars for an Unsecured Education Loan?

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.

Let us help you finance your overseas education

Documents Required for Education loan without Collateral for Germany

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-applicants Income tax return

Repayment Plan for Unsecured Loans in Germany

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:

Repayment schedule

EMI

Interest portion

Loan Outstanding

Principal portion

End of 1st year

58684

37462

21222

3974695

End of 2nd year

58684

34947

23737

3703962

End of 3rd year

58684

32135

26549

3401152

End of 4th year

58684

28989

29695

3062462

End of 5th year

58684

25471

33214

2683643

End of 6th year

58684

21535

37149

2259938

End of 7th year

58684

17134

41550

1786031

End of 8th year

58684

12210

46474

1255972

End of 9th year

58684

6704

51980

663109

End of 10th year

58684

545

58139

0

 

Secured or with Collateral Education Loan for Germany

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

Loan Parameters

Details

Loan Limit

Upto 1.5 Cr

Expenses covered

  • Tuition fees
  • Living expenses / Blocked account
  • Travel card, Insurance, and Miscellaneous expenses 

Eligible courses

  • Bachelor's and master's degrees in STEM and management courses 
  • Certification courses of PG and UG

Interest rate

Starts from 8.5% 

Moratorium Period

Course duration plus one year

Repayment Duration

15 years

Repayment policies

No need to pay any interest during the moratorium period

Eligibility Criteria

  • Admission in a German university 
  • Valid passport 

Types of Collateral

Immovable properties -House, Flat, Non Agricultural land

Liquid securities-LIC policies, FD, Govt. bonds

Value of collateral (In case of a collateralized loan)

For top-ranking universities - half the value of the required amount

Other universities - an equal value of the required amount.

 

Banks that offer Secured Loan for Germany

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
Make your education abroad experience hassle-free with our help

How to Get Secured Education Loan for Germany

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. 

Get the financial support you need for a world-class education with WeMakeScholars

Disadvantages of going Directly through Banks for a Secured Education Loan

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.

Why Choose WeMakeScholars for a Secured Education Loan?

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.

Documents Required for Education loan without Collateral for Germany

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 Plan for Secured Loans in Germany

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.

Repayment schedule

EMI

Interest portion

Loan Outstanding

Principal portion

End of 1st year

34317

18418

15899

2584254

End of 2nd year

34317

17012

17305

2384444

End of 3rd year

34317

15483

18834

2166972

End of 4th year

34317

13818

20499

1930278

End of 5th year

34317

12006

22311

1672662

End of 6th year

34317

10034

24283

1392275

End of 7th year

34317

7888

26430

1087105

End of 8th year

34317

5551

28766

754960

End of 9th year

34317

3009

31308

393457

End of 10th year

34317

241

34076

0

 

Expenses Covered for Education Loans in Germany

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.

Special Education Loan Schemes for Germany

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 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 best terms, and the way to choose the best bank is by visiting WeMakeScholars and request for a callback or fill the common application form and a professional financial officer will be assigned to process your loan application.

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 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 request for a callback or fill the common application form and a professional financial officer will be assigned to process your loan application.

Scholarships for Studying in Germany

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. 

Universities Recognized for Education Loan in Germany

Each bank be it public or private they have 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 that of banks or not, Just get in touch with the financial officer of WeMakeScholars by requesting a callback or filling the common application form.

Education Loan FAQs

  • Can I get a loan to study in Germany?

    Yes, you can get an education loan up to a 1.5 cr secured loan and up to 75 lacs unsecured loan to study in Germany.

  • How can International students get student loan in germany?

    Getting a student loan is so simple for all the Indian students all you have to do is just request for a callback or fill a common application form

  • How much total money is required to study in Germany?

    If you received an admission in public universities there wouldn’t be any tuition fees and the only expense is the living expenses and that will cost around 10 lacs per annum approx.

  • How can I study in Germany at a cheaper cost?

    Get an admission in a public university as they don’t charge tuition fees. Have some roommates as you can save a lot on rent, utility bills

  • Is Germany costly for Indians?

    Germany not only provides free education but is also pretty affordable as the transport and healthcare are under the public sector.

  • Is Germany cheaper than Canada?

    Germany is cheaper than Canada as the cost of living , health care, transportation are much higher in Canada compared to Germany

  • Is IELTS required for Germany?

    It is required only if you are going for an English-taught course, else it’s not required as it’s not an English-speaking country.

  • How much is proof of funds for Germany?

    You need to show one year's living expenses in your blocked account as proof of funds to study in Germany.

  • Which college is free in Germany?

    All public universities provide free education for everyone in Germany, only a limited amount is collected in the form of yearly contribution from the students.

  • How much do Indian students earn in Germany?

    Indians working in Germany earn upto 9,80 euros per hour and as per that calculation you can clear your student loan in 3 years max.

NEWS

India Surges Ahead: 25% Spike in Students Choosing German Universities

The number of foreign students in Germany has reached a new high, with over 42,000 students from India, a notable increase of 25% within a year, as reported by German Ambassador to India, Philipp Ackermann, who highlighted the rapid growth and mutual popularity between Indian students and German universities. India has now become the largest group of foreign students in Germany.

The transition from paper-printed to digital certificates by the German Embassy's Academic Evaluation Centre is aimed at simplifying administrative processes.

A bilateral agreement signed last year between India and Germany focuses on facilitating two-way mobility for students, professionals, and researchers, while also addressing migration challenges.

Despite the pandemic's disruptions, Germany's appeal remains strong, even as countries like the US and UK also attract Indian students. In 2022, 34,864 Indian students pursued courses in Germany, reaffirming its position as a top educational destination.

Last Updated - 16/08/2023

 

Tier 2 & 3 Cities Propel India's Global Education Wave

India's tier-2 and tier-3 cities are at the forefront of the nation's digital transformation, driven by increased digital adoption and improved infrastructure. This shift is accompanied by surging aspirations, notably in the realm of global education. In 2022, 750,000 Indian students pursued international education, a 68% increase from the previous year. Reports indicate a sharp rise in loan applications for foreign education, particularly from these cities.

This trend is propelled by India's expanding middle class, which has grown to 604 million, driven by rising incomes and improved living standards. Educational opportunities are expanding, with hybrid education models offering affordable foreign degrees. Students are diversifying their study abroad destinations, considering options beyond the US and UK, favoring Germany, Italy, and the Netherlands.

Furthermore, India's commercial sector, notably Global Capability Centers (GCCs), is on the rise, offering employment prospects. The number of GCCs is set to grow by 500, with tier-2 cities playing a vital role. Returning Indian students, equipped with global education, are poised to contribute significantly to India's economic growth and global presence

Technical University (TU) Munich to Reintroduce Tuition Fees for Non-EU Students in 2024

The Technical University of Munich (TUM) plans to reintroduce tuition fees for non-European Union (EU) students, starting in the 2024/2025 winter semester. TUM President Thomas Hofmann confirmed this decision, with fees ranging from €2,000-€3,000 per semester for bachelor's programs and €4,000-€6,000 per semester for master's programs. This marks TUM as the only Bavarian university to reimpose such fees, following the state's shift to free education.

Hofmann justifies this move by claiming the need for investments to attract more international students and enhance teaching quality. These investments, he says, can't be covered solely by state resources and will be dedicated to improving education quality.

TUM currently hosts around 50,000 students, with roughly 30% of them facing these new fees. Despite the change, TUM insists its fees remain competitive compared to other global universities. Scholarships will still be available to all students, regardless of their origin.

However, this change is controversial, with Student Representation opposing it, fearing it might lead to fees for all Bavarian students. They stress the importance of supporting talented students and ensuring that finances don't restrict access to education.

While the university's decision seems final, Student Representation hopes TUM will make efforts to maintain diverse student participation.

Last Upated - 10/10/2023

Our Education Loan team will help you with any questions

4 Comments

  1. M Fazil Vahora

    That's great but I've requested a callback. But still not receiving a call from you. It's been a 4 days please call i need your help
    14 Jun, 2022 at 11:46 PM REPLY
    1. Paravesh Saireddy

      Hi Fazil! Our team will be getting in touch with you soon.
      15 Jun, 2022 at 04:45 PM REPLY
  1. Ahmed Bawa

    Are your focused on only Indian students
    01 Nov, 2022 at 01:33 AM REPLY
    1. Hritik Jain

      Hi Ahmed! Yes, we are assisting Indian students with education loans for study in India and study abroad. We also list scholarships for students across the globe. Kindly visit: https://www.wemakescholars.com/scholarship You will see an option called Filter Scholarships. Please click on it and fill in your relevant details. The results then will be closest to your requirement. Hope you get some great scholarship options. And for education loans request a callback on this link: http://bit.ly/education-loan Once you fill out the form, our Loan team will get back to you to guide you further.
      01 Nov, 2022 at 08:23 PM REPLY
Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: