Education Loan for Studying in Germany

Studying at an international university is the dream for many students, but this dream comes with a heavy financial cost. Germany is one of the top study-abroad destinations, and the charm of studying in its renowned universities is undeniable, but the bitter truth of heavy expenses can be overwhelming.

Here comes the option of an Education Loan for Studying in Germany.

Taking a loan for a good cause is definitely rewarding, especially when it is for your career. So, to help you in the complex process, we have crafted this blog that includes everything you should know about applying for an education loan for studying in Germany, understanding the terms, repayment options, top loan providers, expenses covered, and more. 

Types of Education Loans for Studying in Germany

Now, before applying for a student loan for Germany, you should know there are two types of loans for Indian students:

1. Collateral Education Loan: As the name implies, a collateral Education loan is a secured education loan where you have to provide a security or collateral to avail of the study loan.

The security can be tangible or intangible, such as FDs, assets, or property.

The interest rate for collateral education loans is typically lower than Non-Collateral Education loans.

2. Non-Collateral Education Loan: Non-Collateral Education Loan is an unsecured education loan, which means you do not have to provide any collateral to apply for a loan.

The interest rate for non-collateral education loans is typically higher.

Also Read: Best Courses to Study in Germany

How to Get a Study Loan for Germany?

So, now that you have understood the types of education loans for studying in Germany, the next question must be how to get a study loan for Germany.

There is no single answer to this, as it depends on factors such as the type of university, course, age, nationality, and more.

However, irrespective of the factors, here are a few steps that you should follow if you want to get an education loan for Germany from India:

1. Research the various loan providers available in the market, which includes private banks, government banks, and more.
2. Check if you fulfil the eligibility criteria.
3. Select a loan that best fits your financial needs, which includes loan amount, repayment schedule, interest rates, and processing time.
4. Collect all mandatory documents, such as admission, identity proof, and collateral documents.
5. Complete the loan application form and submit it.
6. Once your application is approved, the loan amount will be disbursed directly to your account.

Top Education Loan Providers for Studying in Germany

Now, after knowing the process, you must be wondering which are the best banks in India that provide education loans to study in Germany:

Here is the list of a few of the prominent banks, along with the details associated with their educational loan offerings:

 Also Read: Best Cities to Study in Germany for Indian Students

How to Repayment of Student Education Loan in Germany

Getting an education loan is a significant step, and before taking such a major financial decision, you need to understand the repayment structure of your Student Loan for Germany.

To help you out with the process, here is a breakdown of the repayment structure provided by Indian banks for education loans for Germany:

Education Loan from a Public Bank:

Repayment will begin six months after the completion of your course, and the loan tenure is up to 15 years from the commencement of repayment.

Education Loan from a Private Bank:

In this case, you must pay the interest immediately, but EMI begins a month after you complete the course, and the loan tenure is up to 15 years from the commencement of repayment.

Eligibility Criteria to Get Study Loan for Germany

Here are a few of the mandatory criteria that you must fulfil to avail of the education loan hassle-free:

• Applicants must be Indian residents.
• Your age should be between 18 to 35 years.
• You must have secured admission to a recognised institution in Germany.
• A co-applicant, typically a parent or spouse, is required.
• Co-applicants must have a stable income source.

Documents Required to Get Study Loan for Germany

Make sure that the following documents are ready to support your loan application:

• Education loan Application form.
• Proof of admission from the university.
• Proof of Identity. This includes an Aadhar Card, Voter ID, Passport, and Driving Licence.
• Proof of Address.
• Passport-size photographs
• Salary slips as income proof.
• Academic mark sheets.
• Scholarship letter, if applicable
• A detailed list of expenses for studying the course.
• Statement of assets and liabilities of co-applicant

What are the Expenses covered under an Education Loan for Germany?

Now, you must be wondering what expenses are covered under an education loan for Germany.

You do not need to worry, as an education loan for Germany covers tuition fees and living expenses along with blocked account deposits.

The expenses that are covered include:

• Tuition Fees
• Fees related to examination, library membership, and laboratory.
• Expenses on books and supplies.
• Any refundable deposits, such as accommodation costs and caution money, will also be covered.
• Travel expenses
• Expenses on a study tour or project work related to the course

For any further questions: Feel free to Connect with AECC - for an Education Loan for Studying in Germany. Whether you're shortlisting the banks or getting the documents ready, we are here to help you throughout the process.

Let's embark on this exciting chapter together and turn dreams into degrees !!

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