Guide on Education Loan for Germany

    Updated on: 05 Sep 2023

    education loan for germany

    Germany has become an increasingly popular study destination for international students, with over 349,438 international students enrolled in the country's universities in the academic year 2021/2022, including a significant number from India. Germany boasts over 40 universities ranked in the QS World University Rankings 2023, reflecting the country's commitment to academic excellence. One of the most appealing aspects of studying in Germany is that public universities offer education with no tuition fees, making it an attractive choice for students seeking affordable higher education. Additionally, the quality of education is outstanding, with renowned professors and state-of-the-art facilities that create an enriching learning experience.

    It's important to note that studying in Germany does require finances, and while tuition fees are typically not a concern in public universities, students may still have living expenses and other costs to consider. In such cases, taking out an education loan for Germany can be a viable option.

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    Types of education loan

    If you are planning to study in Germany and require financial assistance, you can opt for education loans to fund your education. There are two types of education loans for Germany that you can consider, secured and unsecured.

    • Secured education loan for Germany- also known as an education loan with collateral, requires the borrower to provide security, which can be in the form of movable assets such as fixed deposits and LIC insurance or immovable assets like non-agricultural land, residential or commercial property. It's important to note that in India, most public banks require collateral to grant an education loan for studying abroad.
    • Unsecured education loan for Germany - it does not require the borrower to pledge collateral thus also known as education loans without collateral. However, this leads to an increased risk for the financial institution, and therefore, the interest rates for these loans are usually higher compared to secured education loans. In addition, these loans require a co-applicant or co-signer, and the loan amount is based on the co-applicants income and CIBIL score.

    Cost to study in Germany

    Before searching for lenders to finance your education in Germany, it's essential to evaluate the average cost of studying in Germany. This information can help you determine the appropriate amount of loan to take from your chosen lender. The table below shows the average cost of studying in Germany.


    Average cost in EUR

    Tuition fees

    Public University: 250 - 300 per year
    Private University: 20,000 - 35,000 per year

    Health insurance

    110 - 125 Per Month


    350 - 800 per month

    Transportation cost

    20 - 30 per month


    140 - 265 per month


    200 - 250 per month

    List of lenders providing education loans for Germany

    There are various lenders that offer education loans for studying in Germany, including public banks, private banks, NBFCs, and international lenders. To provide you with a better understanding of each lender and their loan services, a comparative analysis has been conducted. This analysis can help you choose the most suitable lender for your education loan needs.


    Loan Amount in INR

    Interest Rate

    Secured education loan


    Up to 1.5 Cr

    10.65% - 11.50%


    Up to 1.5 Cr

    9.55% - 10.80%

    Unsecured education loan

    Axis Bank

    Up to 40 Lakhs

    11.00% - 11.50%

    ICICI Bank

    Up to 50 Lakhs

    10.85% - 12.50%

    IDFC First Bank

    Up to 35 Lakhs

    11.75% - 13.25%

    HDFC Credila

    Up to 25 Lakhs

    12.00% - 12.75%


    Up to 20 Lakhs

    12.50% - 13.50%


    Up to 20 Lakhs

    12.50% - 13.50%


    Up to 20 Lakhs

    12.50% - 13.50%

    Prodigy Finance

    Up to 100,000 USD

    12.00% - 14.00%


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    Eligibility to obtain an education loan for Germany

    It is important to verify if you meet the eligibility requirements for the loan before submitting your application. The eligibility criteria may vary among different lending institutions. Below are some common eligibility criteria that are typically followed by most lenders:

    • Should be an Indian citizen.
    • Must have gained admission to a German university that is recognized by the bank.
    • Applicant should be a minimum of 18 years of age.
    • Should have chosen a job-oriented course that can help repay the loan after their education.
    • Applicants must demonstrate proof of having 11,208 EUR deposited into their bank account, which will be used as a blocked account.

    Required documents for education loan to study in Germany

    An education loan for studying in Germany also has specific document requirements that must be submitted during the loan application process. These documents may include:

    • Applicant’s KYC documents
    • Mark sheets of 10th, 12th, and bachelors. 
    • Admission letter
    • Fee structure
    • Co-applicant KYC and income proof
    • Blocked account fund proof
    • Additional documents may be requested in case of collateral required
      • Accepted Security/ Collateral:
      • Residential/ commercial property/ plots (Non-agricultural)
      • Fixed deposits.


    Read more about: Documents Required for an Education Loan

    Check Your Education Loan Eligibility for Free Apply Here

    How to apply for an education loan to study in Germany?

    Applying for an education loan to study in Germany is a straightforward process, especially when applying through GyanDhan. The following steps outline the procedure:

    • Check your eligibility for an education loan through GyanDhan's eligibility checker.
    • An education loan counsellor will contact you to explain everything about the loan.
    • You'll receive a customized document checklist as per the shortlisted lender.
    • Arrange and submit all the required documents to the lender for verification.
    • After verification, an approval/sanction letter with an agreement letter will be provided to you.
    • If you agree, sign the agreement letter and send it to the lender.
    • Depending on your need and the lender's policy, the loan amount can be disbursed to your bank account or directly to your university.

    Expenses covered in education loan to study in Germany

    The lending institution may cover not only the tuition fees as specified by the university or college, but also other expenses such as accommodation, travel, examination, library and laboratory charges, as well as the purchase of books, equipment, uniforms, computers, or laptops, and instruments necessary for completing the course. The lender may also provide one economy-class return ticket between India and the country where the student is studying as travel expenses.

    Read more about: Expenses Covered under Education Loan

    Having a good understanding of the loan process can make a significant difference when applying for a study loan in Germany, which is a great destination for studying abroad with several lenders offering educational loans. With so many options, it can be challenging to choose the most suitable lender. Therefore, by gaining comprehensive knowledge about education loans in Germany and comparing different lenders, you can make an informed decision. If you require expert advice or assistance, you can contact GyanDhan's loan experts by checking your loan eligibility.

    Know more about studying in Germany: 


    First published date: 20 Nov 2019

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Madhuwrita Nandi
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