Education Loan for Germany: Top Banks, Features Interest Rate

Education Loan for Germany

Germany is one of the favourite destinations for international students who want to study abroad. In the year 2023, around 42,000 Indian students were studying in Germany. A total of 17 universities in Germany are among the world’s 250 top-ranked universities. There are a lot of banks and NBFCs in India that easily approve education loans to study in Germany. Some banks also cover funds for a Germany Blocked Account that is necessary for students going to Germany for academic purposes. Let’s check all the major details and features of education loans provided by top banks to study in Germany.

Types of Education Loans to Study in Germany

There are majorly two types of education loans offered by Banks in India – (a) Secured Loan and (b) Unsecured loans. A secured loan is a type of loan in which the borrower needs to pledge a tangible asset as collateral with the bank as a guarantee for the loan. Usually, the interest rate for a secured education loan is lower. 

An unsecured loan is a type of loan in which the loan is sanctioned based on the income of the applicant and there is no requirement for any collaterals. The interest rates on these loans are higher because they involve more risk for the bank/lender. If you want to take a bigger amount of loan then it is suggested to get a secured loan so that you can save money which is supposed to be paid against the interest rate. Banks in India offer both secured and unsecured loans to study in Germany. Let’s check the features of loans from some of the top banks.

Also Read: Did you know a gold loan can also be availed for education? Check here all about Gold Loan for Education 

Top Banks Providing Education Loans to Study in Germany

All the major public and private sector banks in India provide education loans to study in Germany. Some of the top banks are the State Bank of India (SBI), Union Bank, Bank of Baroda, ICICI Bank, HDFC Bank etc. Check all the major features of education loans from these banks below:

SBI Education Loan

The State Bank of India provides education loans to study abroad under the SBI Global Ed-vantage scheme. Students can get up to INR 1.5 crore education loans at affordable interest rates ranging between 11% to 13%. SBI Education Loan scheme also covers German blocked account requirements. Check the major features of the SBI Global Ed-vantage education loan for Germany below:

ParticularsDetail
Name of SchemeSBI Global Ed-vantage
Quantum of FinanceINR 7.5 lakh to 1.5 crore
Rate of Interest11.15% Floating
Repayment PeriodUp to 15 years
Collateral RequirementTangible collateral security for loans above INR 7.5 lakh
Mode of ApplicationOnline through Vidya Lakshmi Portal
Processing FeeINR 10,000 per application

Also Read: Check this blog and know all the major documents required for education loan to study abroad

Bank of Baroda Education Loan

Bank of Baroda is one of the most popular choices among students who want to study abroad with the help of an education loan. It offers education loans under the Baroda Scholar loan for overseas studies. Check the major features of the Bank of Baroda education loan for Germany below:

ParticularsDetails
Name of SchemeBaroda Scholar Loan
Quantum of FinanceUp to 1.5 crore
Rate of InterestFor Premier Institution Abroad- 9.70%
For Non-Premier Institution Abroad:
– Up to INR 7.5 lakh: 11.15%
– Above INR 7.5 lakh: 10.20%
Repayment PeriodUp to 15 years
Collateral RequirementCollateral required for a loan above INR 7.5 lakh
Mode of ApplicationOnline
Processing Fee1% of the loan amount (max INR 10,000)
This will be refunded with the first disbursement for premier institutions abroad

ICICI Bank Education Loan

ICICI Bank education loan is one of the major private sector banks in India. The bank provides up to 1 crore education loans to study in Germany without collateral. The application process is very easy and the loan is sanctioned before the confirmation of admission to the university. Check some of the major features of ICICI Education Loan to study in Germany:

ParticularsDetails
Name of SchemeICICI Bank Education Loan
Quantum of FinanceUp to INR 2 crore
Up to INR 1 crore (without collateral)
Rate of Interest10% to 12% [REPO + 3.75% (Spread)]
Repayment Period10-15 years
Collateral RequirementNot required for loans up to INR 1 crore (applicable for premier institutes)
Tangible collateral security required
Mode of ApplicationOnline
Processing FeeUp to 2% + GST (non-refundable)

Union Bank Education Loan

Union Bank is a major player in the Indian market when it comes to education loans for overseas studies. The bank provides education loans under its Union Education Premier Abroad education loan scheme. Check major features of Union Bank education loan for Germany:

ParticularsDetails
Name of SchemeUnion Education Premier Abroad
Quantum of FinanceUp to INR 1.5 crore
Rate of InterestEBLR + 0.50% for loans up to INR 40 lakh
EBLR + 0.25% for loans up to INR 1.5 crore (when 50% collateral value is pledged)
EBLR (when 100% collateral value is pledged)
Repayment PeriodUp to 15 years
Collateral RequirementFor loans above INR 40 lakhs: 50% or 100% collateral (as applicable in line with the interest rate)
Mode of ApplicationOnline (through Vidya Lakshmi Portal)
Processing FeeNo Processing Charge

HDFC Bank Education Loan

HDFC is a major private bank in India renowned for its financial services. The bank provides education loans to study abroad at affordable interest rates and flexible repayment terms. The bank provides both secured and unsecured student loans for Germany. Check the major features of HDFC Bank education loan for Germany below:

ParticularsDetails
Name of SchemeHDFC Bank Student Loan
Quantum of FinanceUp to INR 1.5 crore
Rate of InterestStarting from 9.50% p.a.
Repayment PeriodUp to 15 years
Collateral RequirementNo collateral up to INR 50 lakhs for premier institutes abroad
Collateral required for loans above INR 50 lakh
Mode of ApplicationOnline
Processing FeeUp to 1% of the loan amount

Student Loan for Germany: Eligibility Criteria

All the banks and financial institutions prescribe some essential eligibility criteria for education loans. It is always suggested to check the eligibility properly prior to the loan application so that the loan can be approved quickly. Any hindrances or loan rejection due to eligibility criteria may impact the credit score of the applicant. Check some of the common eligibility criteria for education loans for Germany below:

  • The applicant must be an Indian citizen above 18 years of age
  • The credit score must be good i.e above 700
  • A strong academic record should be there
  • The university must be recognised by a registered authority
  • Admission of the student must be confirmed
  • The visa must have been approved

Also Read: Want an education loan at affordable, low and competitive interest rates? Check our blog on How to Secure Education Loan at Low-Interest Rate

Documents Required

There are some essential documents that are required to be submitted for loan approval. Always make sure that the documents are authentic and properly attested as per the bank’s suggestions. Check the documents required for student loans for Germany below:

  • Aadhaar and PAN card of the applicant and co-applicant
  • Passport size photograph
  • Letter of Admission to a recognised University
  • Visa approval letter
  • Income documents of co-applicants like salary slips, letters of employment etc
  • ITR Returns
  • Sale deed of asset (in case of a secured loan)

FAQs

Can I get an education loan to study in Germany as an Indian student?

Yes, several banks in India offer education loans specifically for Indian students pursuing higher education in Germany. These loans cover tuition fees, living expenses, travel expenses, and other related costs.

What are some of the top banks in India that provide education loans for studying in Germany?

Some of the top banks offering education loans for Germany are the State Bank of India (SBI), HDFC Bank, Union Bank, Axis Bank, and ICICI Bank. These banks provide affordable interest rates and flexible repayment options.

What expenses are covered under a student loan for Germany?

Education loans for studying in Germany cover various expenses such as tuition fees, living expenses, accommodation costs, travel expenses, exam fees, and other academic-related expenditures.

What documents are required to apply for an education loan to study in Germany?

To apply for an education loan for Germany, students need to submit documents such as an admission letter from a recognized German university, fee structure, mark sheets, proof of identity, proof of address, income proof of co-borrower (if applicable), and collateral documents (if required). The list of documents may vary depending on the bank’s policies.

How can I repay my education loan for studying in Germany after completing my studies?

After completing your studies in Germany, most banks provide a grace period or moratorium of course period + 1 year before you start repaying the loan. After the moratorium, you can start repaying the loan in equated monthly instalments (EMIs).

This was all about education loan for Germany. Always compare the terms and conditions of different lenders and apply with the best bank that suits your requirements.

To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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