Germany is known for its world-class universities and affordable education, making it a top choice for students worldwide. You can consider studying in popular German cities like Berlin, Munich, and Frankfurt, which are home to some of the country's top universities. However, even with low tuition fees, managing the overall cost of studying abroad can be challenging. A study loan can ease this burden, giving you the financial support needed to focus on achieving your academic goals without the immediate stress of finances.
A study loan for Germany typically comes with flexible repayment options and an extended grace period. It covers important expenses such as tuition, living costs, travel, and other study-related expenditures.
Several lenders provide study loans for students aspiring to study in Germany. Here’s a snapshot of the key loan providers available on Bajaj Markets:
Lender |
Maximum Loan Amount |
Starting Interest Rate |
Maximum Tenure |
InCred Finance |
₹1.5 Crores |
11.50% p.a. |
15 Years |
Propelld |
₹25 Lakhs |
12.00% p.a. |
10 Years |
HDFC Credila |
₹75 Lakhs |
10.25% p.a. |
15 Years |
*Disclaimer: The mentioned details are subject to change at the lender’s discretion.
There are several advantages of applying for a study loan to pursue higher education in Germany:
A study loan of up to ₹1.5 Crores can help you secure admission at top German universities, cover its tuition fees and manage the living expenses
A study loan typically covers not only tuition fees but also living costs, health insurance, and travel expenses
Most lenders offer a grace period during which you don’t have to start repayments until after you complete your degree and secure a job
Timely repayments of your student loan can help you build a positive credit history. This can make it easier for you to access other credit facilities in the future.
When choosing a study loan provider for Germany, consider these factors:
On Bajaj Markets, you can get a study loan of up to ₹1.5 Crores at low interest rates starting from 10.25% p.a. Ensure the loan covers all your educational needs, including tuition, accommodation, and daily expenses.
Check if the lender offers a grace period where repayments start after course completion. This will give you enough time to settle and find a job before loan repayments begin.
For loans above ₹80 Lakhs, you may need to provide collateral. Lenders will offer unsecured loans for lesser amounts. Evaluate whether you have assets to pledge or opt for an unsecured loan based on your requirements.
Ensure the loan provider discloses all associated fees, such as processing charges, to avoid hidden costs. Choosing a transparent lender helps you assess your loan’s overall cost.
Check if the lender offers flexible repayment options, such as step-up EMIs or income-linked repayment plans. This can make managing your loan easier after completing your education.
Follow these tips to expedite your loan approval process:
Try to reduce existing debts before applying for an overseas education loan to maintain a better DTI ratio. This improves your eligibility and speeds up approval.
Lenders are more likely to approve loans with a shorter repayment period. It reduces the risk associated with the loan for your lender.
Once you submit your loan application, keep an open line of communication with the lender. Quick responses to any requests for further information can help speed up the process.
A study loan for Germany typically covers a wide range of expenses, including:
While public universities in Germany often have low tuition fees, private institutions may charge significant amounts. A study loan will cover these fees, allowing you to pursue higher education without facing any financial pressure.
Germany’s cost of living can vary depending on the city. Study loans can cover accommodation, utilities, and daily living costs, helping you focus on your academic journey.
The cost of flights and local transport within Germany can add up. Study loans typically include travel costs, making it easier for you to manage both international and domestic travel.
From textbooks to digital resources and software subscriptions, study loans can help cover the costs of essential materials required for your program
International students in Germany are required to have health insurance. A study loan can cover this essential expense, ensuring that you are medically covered during your stay.
Study loans can also cover visa application fees, making the process smoother and helping you tackle one more additional cost with ease
Here’s a detailed look at the repayment options available:
Study loans for Germany usually come with flexible repayment tenures, ranging up to 15 years. Opting for a longer tenure leads to a lower EMI amount. This makes it easier to manage your finances, especially in the initial years after getting the degree, when your income may be lower. However, longer tenures increase the overall interest burden, as you will be paying interest for an extended period.
Meanwhile, choosing a shorter tenure can lead to higher EMIs, but lower interest costs. This results in a decrease in the aggregate cost of the loan. This option is ideal if you expect a higher starting salary or if you have additional financial support and can manage larger EMIs. Before choosing a tenure, it’s crucial to evaluate your future earning potential and your comfort level with higher monthly payments.
Interest rates for study loans in Germany typically start at around 10.25% p.a., depending on the lender and market conditions. These rates may vary based on whether the loan is secured or unsecured. A secured loan, where you offer collateral like property, may have a lower interest rate. Conversely, unsecured loans tend to have slightly higher interest rates due to the increased risk for lenders.
A moratorium period, often referred to as a grace period, is a critical feature of study loans. It allows you to defer loan repayments during the course of your studies and for a certain period after graduation. In the case of loans for studying in Germany, this grace period typically extends up to 6 months after you complete your studies. This is designed to give you sufficient time to secure a job before you begin repaying your loan.
Some lenders may offer an extended moratorium that can last up to 12 months, depending on the course and institution you are enrolled in. This additional time can be especially beneficial if you anticipate needing more time to find employment in your chosen field. During the moratorium period, you may be given the option to defer both principal and interest payments. However, it's important to note that interest will likely continue to accrue on the loan amount during this time.
To reduce the overall cost of the loan, pay the interest during the moratorium period, which prevents the interest from being added to the principal. This strategy can significantly lower the total loan amount you will need to repay after the grace period ends.
Most lenders offering study loans for Germany provide flexible prepayment options. They allow you to partially or completely repay your loan ahead of schedule. For this, you may be required to pay some nominal charge. This can be quite useful if you want to reduce your loan burden earlier than planned.
Prepaying a portion of the loan reduces the principal, which in turn lowers the amount of interest you will pay over the remaining tenure. Lenders may offer the option to make partial prepayments, where you can pay off a lump sum whenever you can. This either reduces your EMIs or shortens the overall tenure, depending on the terms of your loan.
Some lenders offer income-linked repayment plans, which adjust your loan repayments based on your income. This ensures that your EMIs remain affordable, especially if you are starting with a lower salary post-graduation. With this plan, as your income increases, your monthly repayments will also increase. It enables you to pay off the loan faster once you are more financially stable.
This option is particularly beneficial if you are uncertain about your earning potential or are pursuing careers where starting salaries may be low. The flexibility of income-linked repayment plans helps prevent financial strain during the early stages of your career. It ensures that you can manage both your living expenses and loan repayments without difficulty.
Many lenders allow interest-only payments during the course of your studies. This can help you keep your overall debt burden manageable. Instead of making full EMI payments, which include both principal and interest, you only pay the interest portion. This keeps the loan from compounding (where interest is added to the principal).
Interest-only payments help reduce the financial strain during your studies when you may not have a steady income. After the moratorium period ends, and you begin working, you can start repaying the full EMIs, including both principal and interest. By paying off the interest during your study period, you can prevent loan accumulation, which makes your loan more affordable once you get a job.
Here are some reasons why Germany is considered to be one of the top destinations for higher education:
Public universities in Germany charge minimal tuition fees, making education accessible without compromising on quality
Germany offers excellent post-study work visas that allow you to stay and work for up to 18 months after graduation. This helps you gain valuable experience and secure long-term employment.
Germany is home to a diverse community of students, providing you with a global perspective and rich cultural experiences
Studying abroad comes with its set of challenges, especially when it comes to managing finances. Here are some of the most common challenges you might face when securing a study loan for Germany, along with tips to overcome them:
Interest rates on study loans can vary depending on the lender and whether the loan is secured or unsecured. Higher interest rates can make your loan more expensive over time, increasing your monthly repayment amounts and the total cost of the loan.
How to overcome it:
Compare lenders: Start by comparing interest rates from different lenders. Secured loans, where you provide collateral, often come with lower interest rates. If you have the assets to pledge, this can be a cost-effective solution.
Negotiate rates: If you have a strong credit history or a co-applicant with good financial standing, use this to negotiate better terms. A good credit score demonstrates reliability, which can lead to lower interest rates.
For larger loan amounts, lenders often require collateral such as property or other valuable assets. This can be challenging if you don’t have sufficient collateral to pledge.
How to overcome it:
Opt for unsecured loans: Lenders offer unsecured study loans for amounts up to ₹80 Lakhs on Bajaj Markets. While the interest rates may be slightly higher, these loans don’t require collateral, making them a good option for students without assets to pledge.
Consider peer-to-peer lending: Peer-to-peer lending platforms may offer more flexible terms and could be a solution if you face difficulty securing a traditional loan
Since you’ll be studying in Germany, you’ll likely be dealing with a different currency. Fluctuations between the Euro and Indian Rupee can increase your financial burden. Exchange rate volatility can cause your repayment amount in Indian Rupees to rise unpredictably.
How to overcome it:
Check if loan calculations are in rupees: Lenders may offer the option of keeping your repayment and interest calculations in Indian denomination. This helps you avoid the impact of exchange rate fluctuations. Your loan costs remain comparatively stable, allowing for better financial planning and loan cost estimates.
Lock-in exchange rates: Consider using a forex card or financial products that allow you to lock in exchange rates. This can give you more predictability in your repayments by fixing the conversion rate at a favourable level.
Set up an NRE account: If you plan on working in Germany and sending money back home, an NRE (Non-Resident External) account can help manage currency fluctuations, as it allows you to transfer money back to India at more favourable exchange rates.
The loan approval process for international study loans can be lengthy. This is because lenders often require extensive documentation and follow long verification procedures in such cases. Such long processing times can lead to a delay in acquiring the required amount and disrupt your study plans.
How to overcome it:
Prepare documentation early: Start gathering all the necessary documents well in advance of your application. Ensure your admission letters, financial statements, and other required paperwork are in order to avoid delays.
Choose lenders with quick approval processes: Some lenders offer expedited approval processes for study loans. Look for lenders that have a dedicated team or fast-track services for students applying for overseas education loans.
Germany is known for its low tuition fees at public universities, but living expenses can still be significant. If your loan amount is too low to cover your total expenses, you might face financial strain during your studies.
How to overcome it:
Estimate total costs accurately: Before applying for a loan, carefully estimate your total expenses, including living costs, health insurance, travel, and study materials. This helps ensure you borrow enough to cover all your needs.
Consider multiple funding sources: In addition to your study loan, explore scholarships and part-time work opportunities in Germany. Many international students work part-time to supplement their income. This can help you manage additional expenses that aren’t covered by your loan.
Opt for top-up loans: Some lenders offer top-up loans, which allow you to borrow more if your initial loan proves insufficient. Keep this option in mind as a backup plan in case you need more funds later on.
Germany offers a wide range of scholarships for international students:
Germany is known for its top-notch education system and offers many scholarships for international students, including those from India. These scholarships are grouped into government-funded, non-government, and university-specific categories.
DAAD Scholarships
Deutscher Akademischer Austauschdienst (DAAD) which translates to German Academic Exchange Service (DAAD) in English, is the largest provider of scholarships for international students. It offers various programs that cover tuition, living expenses, travel, and health insurance for students pursuing undergraduate, master’s, or doctoral degrees in Germany. The DAAD also funds research projects and internships.
Erasmus Mundus Scholarships
This program, backed by the European Union, provides scholarships to students from EU and non-EU countries for master’s degrees in Germany. The scholarship covers tuition fees, living expenses, and travel costs.
Heinrich Böll Foundation Scholarships
These scholarships are for students with strong academic records and a passion for social or environmental causes. They cover tuition, living costs, health insurance, and travel.
Konrad-Adenauer-Stiftung Scholarships
This scholarship is aimed at students with excellent academic records who are also politically or socially engaged. It supports both general studies and fields like journalism.
Many German universities have their own scholarship programs to attract talented international students:
RWTH Aachen University: Offers various merit-based scholarships for international students
The Indian government also supports students wanting to study abroad through different scholarship programs:
Indian Council for Cultural Relations (ICCR) Scholarships
These scholarships allow Indian nationals to pursue higher education in countries like Germany, covering both tuition and living expenses
National Overseas Scholarship Scheme
This scheme provides financial aid to Indian students from economically weaker sections who want to pursue postgraduate studies abroad
State-level Scholarships
Several state governments in India offer scholarships for students studying abroad, including those planning to study in Germany
Applying for scholarships along with a study loan can help reduce your financial burden significantly. Here’s how you can apply for both:
Begin your search for scholarships and loans 8 to 12 months before your course starts. Look into scholarships offered by the German government, universities, and private institutions. Early research will help you identify opportunities that match your academic background and financial needs. The same goes for comparing study loans—ensure you check interest rates, loan tenures, and eligibility requirements well in advance.
Carefully review the eligibility criteria for scholarships, such as academic performance, field of study, and English/German proficiency. This will help you focus on scholarships you are most likely to qualify for. Also, make sure you understand loan eligibility, especially concerning collateral requirements or credit history.
Submit your applications for scholarships and study loans at the same time. Gather all required documents like academic transcripts, admission letters, financial statements, and personal essays in advance. This streamlines both applications and prevents delays. Coordinating both applications can help you secure funding faster.
If you secure a partial scholarship, your study loan can help cover the remaining expenses like accommodation, travel, and other living costs. Choose a loan amount based on how much your scholarship covers to avoid borrowing more than necessary. This approach minimises debt and helps with easier repayment later.
Carefully read the terms and conditions of both scholarships and loans. Scholarships may require you to maintain a certain academic standard or adhere to post-study work requirements. Loans, on the other hand, may have different repayment terms based on whether you secure a job after graduation. Make sure you understand all obligations before accepting any funds.
By applying for both scholarships and study loans strategically, you can secure full financial support while keeping your debt manageable.
Here are some top universities in Germany that you should consider:
University Name |
Key Areas of Study |
Technical University of Munich |
|
Ludwig Maximilian University Munich |
|
Heidelberg University |
|
Humboldt University of Berlin |
|
RWTH Aachen University |
|
If you're planning to study in Germany as an international student, obtaining the correct visa is a crucial step. The German student visa process involves several requirements and steps, which vary depending on your nationality and the duration of your studies.
To apply for a German student visa, you typically need the following documents:
Completed Visa Application Form: Fill it out accurately and sign it
Valid Passport: Your passport must be valid for at least six months beyond your planned stay
Biometric Photographs: Usually two recent passport-sized photos that meet specific biometric standards
Proof of Admission: A letter of acceptance from a German university or educational institution
Proof of Financial Resources: Evidence that you can support yourself financially during your studies, typically around €11,904 per year (approximately €952 per month)
Health Insurance: Coverage of at least €30,000 is valid for your stay in Germany
Language Proficiency Proof: Depending on your course language, you may need to provide evidence of proficiency in German or English (usually at least B2 level)
Depending on the tenure of your education in Germany choose between the Schengen visa and National visa. The former is applicable for a course period under 90 days, and the latter for a course duration of more than 90 days. The National visa (also known as type D visa) is further divided into 3 categories:
For students who have received admission to a recognised higher education institution in Germany
For prospective students who have applied to a higher education institution but have not yet received confirmation of admission. This visa allows you to enter Germany while you finalise your university application.
For individuals wishing to attend intensive German language courses without enrolling in a university program
The fee for applying for a visa usually amounts to €75 for adults and €37.50 for minors. This amount is subject to change at the discretion of the immigration department of Germany. After completing your degree, you may be eligible for a post-study work visa that allows you to stay in Germany for up to 18 months.
The probable tuition cost of studying in Germany is as follows:
Degree Level |
Cost Range |
Undergraduate |
€200 to €3,000 per year |
Postgraduate |
€3,000 to €20,000 per year |
Doctorate |
€500 to €10,000 per year |
*Disclaimer: The mentioned amounts are estimates. Check the official website of the university you wish to study in to get the complete fee structure and make financial decisions accordingly.
The costs of studying at a public university are comparatively lower than that of private institutes. Also, you need to take into account the associated living costs, when planning to study in Germany. This could range from €8,000 to €12,000 annually, depending on your location.
You can get secured loans of up to ₹1.5 Crores on Bajaj Markets for studying in Germany. If you require an unsecured loan, you can borrow up to ₹80 Lakhs.
Yes, many scholarships are available, including DAAD scholarships and university-specific grants.
Yes, all international students are required to have health insurance during their stay in Germany.
Yes, several government-backed scholarships from both Germany and India are available. These may cover up to 100% of your education costs. The scholarships are provided based on your merit or financial need.
While it is not compulsory to have sponsorship, you must have sufficient funds to manage your tuition fee and living expenses. You may be asked to submit your bank statements to prove the same.