Germany is a popular destination for students seeking to study abroad, but like studying in any foreign country, it can be costly. Therefore, many students opt to work part-time to support themselves, but sometimes these jobs may not be enough to cover all expenses. To avoid such situations, students often turn to education loans to study abroad.
An education loan for Germany provides students with the opportunity to pursue their studies at their desired university without worrying about the financial burden. By availing themselves of this loan, students can pay for their education without compromising on the quality of their studies. If you are a student looking to study in Germany and want to avoid any financial constraints, read on as we have got you covered!
What is the Cost of Studying in Germany?
The cost of studying in Germany for Indian students can vary depending on several factors such as the level of study, the university or program, location, and personal expenses. However, some general estimates can be provided:
Tuition fees: In most German universities, there are no tuition fees for undergraduate programs, and many Master’s programs are also free of tuition fees. However, some specialized Master’s programs may have tuition fees ranging from €5,000 to €20,000 per year.
Living expenses: The cost of living in Germany can vary depending on the location and lifestyle of the student. On average, a student should budget around €800 to €1,000 per month to cover expenses such as accommodation, food, transportation, and other personal expenses.
In summary, an Indian student studying in Germany can expect to spend around €10,000 to €15,000 per year on average, excluding tuition fees (if applicable). It is important to note that scholarships and other financial aid options are available for international students in Germany to help offset the costs.
Required Documents: Education Loan to Study In Germany
In order to obtain an education loan for higher studies in Germany from nationalized banks students are required to submit a set of documents for loan processing. The following is a list of documents that borrowers need to provide:
- A letter of admission from the University or college
- A completed loan application form
- Documents indicating the cost of studies
- Identification proof
- Residence proof
- PAN details of the borrower
- Bank statements of guarantor, co-borrower or student
- Statement of assets of guarantor, co-borrower or student
- Proof of income of guarantor, co-borrower or student
- It is important to note that the specific documents required may vary slightly depending on the bank and the loan scheme. Hence, students are advised to confirm with the respective bank before submitting the documents.
Eligibility Criteria: Study Loan for Germany
To apply for an education loan in Germany, the following eligibility criteria must be met:
- The applicant must be an Indian citizen.
- The applicant must have received admission to a recognized university/course that is eligible for funding from the lending institution.
- The applicant must be at least 18 years of age or their parents can apply for the loan on their behalf.
- The course that the applicant is seeking funding for must be job-oriented.
Expenses Covered under Student Loan For Germany
The university will provide documents indicating the total fees and expenses required to complete the course at the time of admission. While German universities do not charge tuition fees, there may be other expenses related to studying and living in the country that is included in the loan amount.
It’s important to note that the loan is solely intended for educational purposes and personal expenses are not covered.
The loan will cover expenses such as tuition fees (if applicable), accommodation costs, caution deposit money (security deposit), travel expenses, study tours, and project work during the academic year, as well as expenses related to purchasing books, laptops, and stationery. Additionally, other reasonable expenses that are necessary to successfully complete the course may also be included in the loan amount.
Types of Education Loans available: Student Loans for Germany
1. Collateral Loan in Germany
An applicant must provide collateral as security while applying for this type of study loan. In this type, a lender receives the collateral as security in an amount equal to the loan. Tangible assets like non-agricultural land, residential properties, or other establishments are used as collaterals.
2. Non-Collateral Loan in Germany
Non-Collateral Loan for Germany is the second type of student loan. In this case, obtaining a it does not require providing collateral to the lender. It’s important to note that a co-applicant’s income will impact the approval chances. Additionally, only a few foreign and private lenders offer unsecured education loans for students from India who want to study in Germany. The main providers of unsecured education loan for Germany are NBFCs and private banks such as ICICI Bank, Axis Bank, and others.
FAQs about Student Loans For Studying in Germany:
1. Where can international students get student loans in Germany?
If you can show that you are capable of repaying the loan and plan to continue living in Germany after your studies, you may be able to obtain a loan in Germany.
2. How much money do I need to borrow for studying in Germany?
The cost of studying in Germany can range from 11,000 to 16,000 EUR, even if you are attending a public university. Therefore, you may need to borrow anywhere from 8L to 12L to cover your expenses.
3. Can I obtain a student loan for studying in Germany without collateral?
Yes, student loans for studying in Germany are also available to foreigners without requiring collateral.
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