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Education Loans In The Germany

Germany is one such country which has opened up to international students in the past few years. Recent news reports suggest legislative support for immigration and improved support for the international student community. For several reasons, Germany has become a hotspot for career development and a better way of living for Indian students. In 2024, Germany is expected to host a significant number of international students, with the country already having recorded a record number of 3,68,000 foreign nationals enrolled in higher education institutions during the 2022/23 academic year. 

The first thing that comes to mind when opting to study in Germany is the public universities with their low or no-fee model. However, Germany mandates international students to reach the country with a blocked amount in their bank accounts. The requirement for this can start from 10,200 EURO that is approximately INR 15 Lakhs. Students must also pay accommodation deposits, city registration fees, semester fees (depending on the university) and so on. At times when a student cannot afford to finance their studies, public banks, private banks and NBFCs can help students with their education.

There are a lot of factors involved when it comes to taking an education loan for Germany. The first step to seeking a student loan is to know whether students qualify for one. It is, therefore, important to check the qualifying requirements once students have decided to take out an education loan. The following are the necessary criteria for obtaining a student loan in Germany in India:

1. The applicant must be an Indian citizen.

2. The student must have been admitted into one of the German universities recognised by the bank.

3. The student must be at least 18 years old.

4. The candidate should have been accepted into a job-oriented programme to repay the loan following their study.

5. The student must show 10,200 EURO that is approximately INR 15 Lakhs as a blocked account.

Student loans for Germany for international students can be obtained through nationalised banks or NBFCs when planning their finances well and knowing what documents are required to start the procedure. 

Below is a list of documents for students based on their profile, the profile of their co-applicant, and any collateral they submit. However, these are the documents that international students in Germany must have to obtain an abroad education loan.

• Education loan form filled with required details
• Identity proof: PAN card, passport
• Residency proof (choose one):
  • Voter ID Card
  • Bank account statement
  • Passport
  • Electricity Bill
  • Aadhar
  • Ration card
  • Telephone bill
• Co-borrowers 6-month bank statement (Salaried: 1 year of salary credits; Self-employed: 1-year business transactions)
• Personal Asset & Liability Statement (self-attested)
• Applicant academic documents:
  • Marksheets and certifications in 10th, 12th, and degree
  • Proof of enrollment
  • Course cost/fee structure
  • IELTS/GMAT/GRE Scorecard
  • University ranking print-out
• Financial Co-applicant Income documents:
  • Salaried: 3-month salary slips, Form 16 of previous two years, employer ID card, ITR of last two years
  • Self-employed: ITR for previous three years, Profit & Loss account, Balance sheet of last three years, business address proof

The cost of studying in Germany for international students varies depending on the university and programme chosen. However, living expenses are an inevitable part of a student’s journey overseas, and this is when an education loan to study in Germany may be useful. 

• Public Universities - There are no tuition fees in Germany for public universities. However, there may be a minimal enrollment fee that you must pay each semester in some situations. Typically, the registration fee is between €250 and €350*. 
• Private Universities - While public universities are relatively inexpensive, students attending private universities face a different situation. International students studying at a private university in Germany may expect to pay anywhere from €25,000/Yr to €40,000/Yr* in tuition fees, depending on the subject. MBAs and engineering programmes are often the most expensive.

At the time of enrollment, the university will supply students with documents that clearly state the cost and the total amount necessary to complete the selected course. It is important to note that, while public German institutions do not charge tuition fees, students incur additional expenditures during their stay in the country, most of which are usually covered by your study loan for Germany. Here are the costs covered by education loan 

1. Fees for examinations, laboratories, and libraries.
2. Charges for college and hostel facilities.
3. Expenses for purchasing books, instruments, or equipment.
4. Travel costs.
5. Deposits such as caution deposits, refundable deposits, and building funds.
6. Student insurance premiums (if applicable).
7. Other expenditures like study tours, thesis, and project work.
8. Buying a laptop (if necessary for the course).

Depending upon the background of the students, they can try for the several types of loans. There are two types of education loans provided for Germany. They include -

Secured Education Loans For Germany

Students with some kind of security to provide to the banks opt for the secured model of education loans. In this case, they either pledge an asset as collateral to the lender/bank. Students can ideally select either of the two mentioned here: 

• Property, lands, shops or stores, and other tangible assets are examples.
• Fixed deposits, government bonds, and insurance are examples of intangible assets.

Unsecured Education Loans For Germany 

Students who have no assets or collateral to pledge can go for the unsecured education loan model. Here, there are no assets; however, in some cases, there is a need for a co-signer, or a strong financial background of the student themselves.

As stated previously, obtaining a education loan for Germany without collateral is also possible. When seeking education loan for Germany, many students prefer to avoid having to deal with any kind of collateral. UniCreds enables this and makes it easy for students by offering education loans for Germany without collateral. This means that the student loan can be approved without requiring students to present a tangible or intangible asset, as well as the accompanying documents and paperwork.

There are a few factors to bear in mind as a student seeking an education loan for Germany, both before and after the loan is approved. Among them are -

1. Make sure to double-check the processing costs of the loan.

2. Compare loans based on the amount of income tax exemptions available.

3. Check the loan margin amount before applying.

4. Keep track of the loan's processing time.

5. Examine the loan repayment terms.

6. Choose a longer term so students can budget for their repayments ahead of time.

7. Make the loan application at least three months prior to the scheduled visa interview.

UniCreds, unlike any other platform, makes securing student loans easy. The main feature is that the education loan is the end-to-end support for students. Here are some of the reasons why securing a study loan for Germany with us is the best choice.

• Full funding (up to 100%) for tuition and living expenses: Covers all educational and living expenditures without requiring any financial contribution from the borrower
• Zero margin money: No initial payment or deposit is necessary
• Quicker approvals: Accelerated loan application approval process
• Customised financing options: Customised loan solutions based on individual requirements and circumstances
• Comparison of loans: Capability to compare various loan options to select the most suitable one
• Tracking loan applications: Ability to monitor the progress of loan applications from submission to approval
• Collateral-free loans: Loans available without the necessity of asset collateral for eligible profiles matching lending criteria
• Online application process: Entire loan application and approval process can be completed online.
• Paperless loan approvals: Electronic approval process eliminating the need for physical paperwork
• Free service: Loan assistance provided without any charges or fees to the borrower

Students have the opportunity to secure a fast education loan by applying to prestigious universities, with QS rankings being a key reference point for banks. Explore the rankings of some leading universities in the Germany to understand their standing.

With high-quality programmes and courses to offer, Germany attracts several international students. Some of the top courses to pursue in Germany with great scope in the global market are listed below,

After the student has selected the colleges, received an admit and finalised the finances, the final step is the applying for the visa. In order to be eligible to apply for a student visa to Germany, here are some requirements that must be met -

1. You must have a passport that is valid for at least one year from the date of visa application with a minimum of 2 empty visa pages.
2. 2 scanned copies of the passport’s personal information page in A4 format.
3. Two copies of the Visa Application Form - Fully filled & Signed.
4. 2 copies of fully filled & signed declaration form for further contact and legal counsel details.
5. Three biometric visa photos.
6. Proof of acceptance into a German study programme or preparatory college. The letter must include information on the language of teaching for the courses. 
7. Evidence that you are at least B2-level fluent in the language of instruction. Please submit the original as well as two copies. 
8. Any academic credentials and certifications. Provide the original and two copies.
9. Certificate issued by the APS (Academic Evaluation Centre)
10. Your CV
11. Evidence of financial means to sustain oneself throughout your stay.
12. Travel Health Insurance.
13. Demand Draft for the Student Visa fees.

Student Loan Germany - By Government

While considering studying abroad in Germany, Indian students can explore education loan options offered by the government. These loans often come with subsidies and special schemes to ease the financial burden. However, securing a government loan requires meeting strict eligibility criteria. Check top banks here: 

Student Loan For Germany - By Private Banks 

While government banks offer certain advantages, students can consider private banks for their education loan needs. Private banks are known for:

• Competitive Interest Rates: They offer rates that rival government banks.
• Fast Application Processing: You receive a quicker loan application decision than government banks.

However, remember that any student loan application, regardless of the bank (private or public), will have eligibility requirements and require specific documentation. Check some of the top lenders for education loans for Germany: 

Student Loan For Germany - By NBFCs

Beyond government and private banks, students in India can explore education loans offered by NBFCs (Non-Banking Financial Companies). They cater to students who meet their specific lending criteria.

NBFCs are known for their streamlined application processes, often featuring minimal paperwork and user-friendly online systems. This can make applying for a loan a more manageable task for students. Check the top lenders here: