Education Loan for Germany

International students who wish to study overseas often face the financial barrier of high tuition fees or high cost of living. But studying in Germany is one of the most lucrative opportunities for students planning to secure their career in a foreign land. Students can opt for engineering, MBA, humanities, and arts courses of different academic levels at reasonable costs in some of the top universities in Germany. Even though the tuition fees are minimal in this European nation, Indian students can opt for education loans for Germany to get financial assistance in their academic journey.

So, let’s learn about some of the readily available study-abroad education loans for students who have secured admission to universities in Germany.

Education Loan for Germany

Germany is home to over ten universities in the top 500 QS World University Rankings 2023. Universities like Technical University of Munich, Ludwig-Maximilians-Universitat Munchen, Karlsruhe Institute of Technology, and others are listed in the top 100 QS World Rankings. It makes Germany one of the best options to pursue your career abroad. Here we have provided you with a complete guide to finding an education loan in Germany. 

Top Education Loan Providers for Studying in Germany

Below mentioned are the topmost platforms to provide education loans in Germany to international students: 

HDFC Credila

HDFC Credila offers education loans in Germany with preferential interest rates for reputed universities. The maximum education loan amount has no limit. The amount can exceed INR 25 lakhs. However, the applicant should meet their eligibility criteria and other obligations. The processing fees for the same are up to 1.5% of the loan amount. Education loans for Germany offered by HDFC Credila can be availed before the student has secured admission at the university. Moreover, borrowers enjoy flexible security collateral. 

State Bank of India

SBI finances International higher education & education loans for Germany for job-oriented and technical graduates and postgraduates. Some of these courses are MBA, MCA, MS, diploma courses at reputed institutes, etc. They cover: 

• Loan amount – INR 20 lakhs to INR 1.5 crore
• Collateral security requirements – For loans above INR 7.5 lakhs    
• Loan margin – 15% for SBI education loan borrowers     
• Interest rate: 10.25% (up to INR 7.5 lakhs) and 10.50% (above INR 7.5 lakhs)   
• Repayment Tenure: 1 year – 15 years   
• Processing Fee: A fixed processing fee of INR 10,000 is charged per applicant 

SBI offers a moratorium period or repayment holiday of 6 months after the course completion. The borrower has to submit a college admission letter, completed loan application form, course costs, co-applicant details, and other KYC documents to the bank. 

Bafog Loans for Special Students

Bundesausbildungsförderungsgesetz or the Bafog loans are financial aid provided to students as interest-free loans to pay for their education. International students may apply for such an education loan in Germany if: 

• One of the parents must be working in Germany for more than 3 years

• Must have attained a German education and stayed in Germany for more than 5 years

• Must have a German graduate or postgraduate degree

• If they are working in Germany with an annual income of more than 48,000 EUR (INR 42,13,968) (for 3 years or more)

• If they have permanent residency in Germany and are working in the country with an annual income of more than 48,000 EUR (INR 42,13,968)

Bildungskredit Education Loan

It is another fund that the German Government grants in association with a private banking group. In contrast to Bafog, the Bildungskredit is awarded to individuals at a higher stage of their education. This type of education loan carries a low-interest rate and is not a need-based platform. Hence everyone has access to it. 

Eligibility Criteria

To apply for an education loan for Germany, the first and foremost thing is to check if you are eligible to apply for the loan. Below provided is the usual criteria that every Indian bank follows: 

• An applicant must be a national of India
• Must have attained the age of 18 years otherwise, their parents will have to take the loan
• The applicant should have an excellent academic background
• The applicant should have secured admission to a recognized foreign institute
• It must be a technical or professional one, as banks give preference to job-oriented courses 

Documents Required 

Following is a list of general documents that are required to apply for an education loan for Germany or for abroad studies: 

For Student/Applicant

•  Proof of Identity such as PAN/Passport/Driver’s License/Voter ID Card
•  Proof of Residence Address: Copy of Telephone Bill/Electricity Bill/Water Bill, etc
•  Academic Records: 10th and 12th Result, Graduation Result,
• Entrance Exam Results through which admission has been secured (GMAT and GRE) and scorecard of English language proficiency tests (TOEFL and IELTS)
• Proof of Admission: Offer Letter
• Statement of study expenses
• 2 passport size photos      
• If there are any existing loans from other Banks/Lenders, Loan A/C Statement for the last 1 year

For Co-Applicant

• Proof of Identity such as PAN/Passport/Driver’s License/Voter ID Card    
• Proof of Residence Address: Copy of Telephone Bill/Electricity Bill/Water Bill, etc     
• 2 passport size photos 
• If there are any existing loans from other Banks/Lenders, Loan A/C
• Bank Statement for last 1 year
• Income Proof for salaried and self-employed co-applicant

FAQs

This was all about education loans for Germany. We hope that you must have found this blog useful and answered all your questions. Still, have doubts? Get in touch with Leverage Edu experts today and get your queries related to study abroad loans and finances sorted. Know about different types of student loans with Fly Finance.