Educational Loan For Germany
Education Loan

Education Loans to Study in Germany 2024

Education Loans to Study in Germany 2024

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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:  07 Jun 2024  | Reviewed By: 
| 18.2K | 7  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.

Check Your Education Loan Eligibility


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.
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    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.

    Education loan for Germany with collateral

    Lender  Loan Amount in INR Interest Rate


    Up to 1.5 Cr

    10.65% - 11.50%


    Up to 1.5 Cr

    9.55% - 10.80%

    Education loan for Germany without collateral

    Lender  Loan Amount in INR Interest Rate

    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:

  • 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.
  • list items Applicants must also provide a financial co-applicant meeting minimum income criteria to secure an education loan for Germany without collateral.  

  • Cost of Living in Germany 2024


    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.

    Calculate your Education Loan EMI

    Read more about: Documents Required for an Education Loan


    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.

    Watch the GD video further to understand your education loan options for Germany



    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: 


  • list items Germany Universities Application Deadline
  • list items Germany vs Ireland: Which is better to Study Abroad
  • list items How to Write a Letter Of Motivation (SOP) for German Universities
  • list items Part-Time Work Options in Germany
  • list items Germany vs Canada: Which is better to Study Abroad
  • list items Scholarship for Indian Students to Study Abroad
  • list items Germany Blocked Account
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    Frequently Asked Questions

    How much loan can I get in Germany?

    In Germany, you can avail up to INR 1.5 Crore with a secured loan and up to INR 50 Lakh for an unsecured loan. The secured option requires collateral, while the unsecured does not, allowing flexibility in financing your studies and associated expenses.

    Does the lender give money for the German Blocked Account?

    Yes, lenders can provide funds for a Germany Blocked Account, which is a requirement for obtaining a student visa for Germany. This account ensures you have sufficient funds to cover your living expenses for the first year of your studies. Education loan providers understand this requirement and can disburse the specified amount directly into your blocked account to meet visa application requirements.

    What are the eligibility criteria for securing an education loan for Germany?

    Applicants must be Indian citizens, accepted into a German university recognized by the bank, over 18, enrolled in a job-oriented course, and must have a blocked account with a minimum balance as per German visa requirements​

    Check Your Education Loan Eligibility


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