Education Loan

Guide on Education Loan for Germany

Guide on Education Loan for Germany

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Looking for education loan options to study in Germany? GyanDhan provides complete information on loan providers, interest rates, and eligibility criteria. Check your loan eligibility at GyanDhan.

Rohit Gidwani
Updated on:  05 Sep 2023  | Reviewed By: 
| 16K | 6  min read

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.

  • list items 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.
  • list items 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.

Expense  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.


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%


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%

Check Your Education Loan Eligibility


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:

  • list items Should be an Indian citizen.
  • list items Must have gained admission to a German university that is recognized by the bank.
  • list items Applicant should be a minimum of 18 years of age.
  • list items Should have chosen a job-oriented course that can help repay the loan after their education.
  • list items 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:

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


Read more about: Documents Required for an Education Loan

Check Your Education Loan Eligibility for Free


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:

  • list items Check your eligibility for an education loan through GyanDhan's eligibility checker.
  • list items An education loan counsellor will contact you to explain everything about the loan.
  • list items You'll receive a customized document checklist as per the shortlisted lender.
  • list items Arrange and submit all the required documents to the lender for verification.
  • list items After verification, an approval/sanction letter with an agreement letter will be provided to you.
  • list items If you agree, sign the agreement letter and send it to the lender.
  • list items 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: 


Check Your Education Loan Eligibility


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