Education Loan for Germany

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Education Loans to Study in Germany

International students who wish to study overseas often face the financial barrier of high tuition fees or high cost of living. But Germany is one study abroad destination that provides top-notch education at affordable prices. Engineering colleges in Germany are famous for their quality education and placement opportunities. Similarly, MBA graduates also hold the same respect as elite corporate institutions. The cost of studying is comparatively lower compared to the USA, UK, Canada, Singapore, etc., and scholarships in Germany also offer partial coverage for academic and living expenses. But, having said that, we have to always be ready for plan B. So, let’s learn about the best and safest option in this blog, where International students will be provided with an education loan for Germany to fully fund their education. 

Education Loan for Germany

Germany is home to over ten universities in the top 500 QS World University Rankings 2021. 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 find an education loan in Germany. 

Top Loan Providers for Education Loan for 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 the other KYC documents to the bank. 

Bafog Loans for Special Students Education Loan for Germany

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 (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

Bildungskredit Education Loan for Germany

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. 

General Eligibility Criteria for Education Loan for Germany

To apply for the 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 follow: 

  • 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’s 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 Result through which admission has been secured (GMAT, GRE, TOEFL, IELTS)
  • Proof of Admission: Offer Letter, Conditional Letter
  • Statement of study expenses
  • 2 passport size photos      
  • If there any existing loan 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 any existing loan from other Banks/Lenders, Loan A/C
  • Statement for last 1 year
  • Income Proof for salaried and self-employed co-applicant

This was all about education loan 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.

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