Education Loan to Study in Germany Without Collateral

Education Loan to Study in Germany without collateral

Germany has more than 45 QS Ranking universities with average tuition fees below EUR 3000 (INR 2.69 lakhs) per year. The country also offers numerous scholarships and bursary options to fund student education, making it an ideal and attractive study-abroad destination. However, increasing competition in applications for scholarships makes it challenging for all to avail of its benefits. 

Thus, many aspiring students look for education loans to study in Germany. Various options exist to avail the same, including public banks (up to INR 7.5 lakhs), private banks (up to INR 45 lakhs), and non-banking financial institutions (NBFCs- up to INR 75 lakhs) at competitive interest rates starting from 9.5% p.a. 

In this blog, we will explore all the relevant and best options to secure education loans to study in Germany without collateral. 

Also Read: Unsecured loans are a great way to fund education abroad without risking your assets. Read this article to find out how to get an education loan without a guarantor

Education Loans to Study in Germany without Collateral

A collateral-free loan is a type of education loan that can be availed without mortgaging any asset with the lending institution against the loan amount. Such loans cover a wide range of colleges and courses which can be availed before admission into a university, unlike secured education loans. These loans cover expenses such as tuition fees, living expenses, bills, and groceries. Click here to check the list of documents for an unsecured education loan. 

The best unsecured loans to study in Germany can be availed from three different types of lenders in India. These are-

  • NBFCs (Non-banking Financial Companies)
  • Private Banks
  • Public Banks

Let’s have a closer look at these sources to fulfil your global dreams of studying in top-notch universities in Germany. 

Collateral-free loans from NBFCs to Study in Germany

Non-banking Financial Companies are lending institutions which are considered better options to avail of education loans as they offer more flexibility to applicants. The unsecured loans they offer usually cover tuition fees, living expenses, travel expenses, and other study-related expenses. They have set eligibility criteria, including academic performance, course selection, and the reputation of the foreign institution. The interest rates, repayment terms, and loan amounts offered may vary across NBFCs. 

Benefits of taking collateral-free loans from NBFCs include flexible repayment options, quick processing time, and customisable loans. Some of the best NBFCs are InCred, Avanse, Auxilo, Prodigy Finance, and HDFC Credila. 

Let’s have a look at education loans to study in Germany without collateral from these NBFCs- 

NBFCsQuantum of FinanceInterest Rates
InCred Education LoanUp to INR 60 lakhsStarting at 12.25% p.a
Avanse Financial ServicesUp to INR 75 lakhsStarting at 14.25% p.a
Auxilo Education LoanUp to INR 40 lakhs Starting at 12.70% p.a
Prodigy Finance Education LoanUp to 100% cost of studying abroad Starting at 11.50% p.a
HDFC CredilaUp to INR 7.5 lakhs
Up to INR 20 lakhs can be offered to exceptional students without collateral
Starting at 13.80% p.a

Also Read: Know all about LLB education loans to study abroad and the best public banks, private banks, and NBFCs providing education loans for LLB students. 

Collateral-free loans from Private Banks to Study in Germany

Private Banks in India are another great option that offers unsecured education loans to study in Germany. Their application process is simple and requires minimal documents. Some private banks sanction education loans without collateral within 15 days of submitting the application form. They also offer income tax rebates on education loans under Section 80E. Some banks offer up to 45 lakhs of non-collateral education loans at competitive interest rates and some banks like ICICI offer up to INR 1 crore. 

Let’s have a look at education loans to study in Germany without collateral from these private banks- 

Private BanksQuantum of FinanceInterest Rates
ICICI BankUp to INR 1 crore Starting at 10.95% p.a
Axis BankUp to INR 75 lakhs Starting at 10.70% p.a
IDFC First BankUp to INR 75 lakhs Starting at 10.50% p.a
HDFC BankUp to INR 45 lakhs Starting at 9.55% p.a
YES BankUp to INR 45 lakhs Starting at 12% p.a

Collateral-free loans from Public Banks to Study in Germany

Public Banks in India offer education loans to study in Germany (or any other country abroad) only up to INR 7.5 lakhs. This amount is set by the RBI under the IBA Model Education Loan Scheme. Aspiring students can consider these popular banks to avail of non-collateral education loans-

  • SBI Bank (Interest rates between 10.40%- 14%)
  • Bank of Baroda (Interest rates between 11.40%- 14%)
  • Punjab National Bank (Interest rates between 9.25%- 14%)
  • Canara Bank (Interest rates between 10%- 14%)
  • Union Bank of India (Interest rates between 10.50%- 14%)

FAQs on Education Loan to Study in Germany without Collateral

Can I get an education loan to study in Germany without collateral?

Yes. Many financial institutions and NBFCs provide non-collateral education loans to study in Germany up to INR 45 lakhs for 15 years to cover the study abroad expenses of aspiring students.

What are the best ways to get unsecured loans to study in Germany?

The best ways to obtain unsecured education loans to study in Germany are through public banks, private banks, and non-banking financial institutions.

What is the maximum non-collateral education loan amount for Germany through NBFCs?

NBFCs like Avanse provide education loans of up to 75 lakhs without collateral to study in Germany. 

What is the maximum amount for an education loan to study in Germany without collateral from Public Banks?

Public banks provide non-collateral education loans of up to 7.5 lakhs to study in Germany.

Is Germany a good country to pursue higher studies?

Germany has more than 45 QS Ranking universities with average tuition fees below EUR 3000 (INR 2.69 lakhs) per year. It is home to some of the best universities like the Technical University of Munich, Ludwig-Maximillians-Universität München, Universität Heidelberg, and Freie-Universität Berlin. It offers numerous scholarships and bursary options to fund student education, making it an ideal and attractive study-abroad destination. 

This was all about availing education loans to study in Germany without collateral. Students can consider any of these options- loans from public banks, private banks, or NBFCs based on their needs and requirements. This way aspiring students can fulfil their global ambitions and unlock amazing opportunities in Germany. 

To know more about the education loan, 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 Shubhika Garg

Hey there! I'm Shubhika- a proud graduate in English Literature and Language from Delhi University. My journey as a content writer transitioned from online teacher into the world of words. Stepping into the domain of blogs and articles, I discovered my passion for writing growing deeper and stronger. Having said that, I have experience of writing for diverse industries in automobile, technology, ed-tech, finance and mental-health; crafting details to help you find the solution to what you are looking for. Join me as I invite you all explore and learn together.

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