KfW Bank Germany International Students Account

KfW Bank Germany provides financial aid to overseas students in the form of loans. This financial aid is available for domestic and non-European Union (EU)/non- European Economic Area (EEA)/non-German citizens who are pursuing higher education in Germany. To finance their undergraduate, postgraduate, and doctorate programmes, study in Germany students can apply online before arriving in this European country. Beneficiaries of KfW student loans get low-interest loans irrespective of the financial status of their parents. Additionally, the flexibility of loan repayments also helps study-abroad students gain quality education from German universities.

Benefits of KfW Bank Germany for International Students

Kreditanstalt für Wiederaufbau Bank offers student loans to international students seeking financial assistance to complete their studies in the territory of Germany. This bank offers several advantages for international students, such as:

• KfW provides student loans with favourable interest rates, making it more affordable for international students to finance their education.
• The bank offers flexible repayment plans that take into account the financial situation of the student after graduation.
• KfW Bank Germany provides extended repayment periods, which means students have more time to pay back their loans without financial strain.
• Unlike many other banks, KfW provides loans without collateral or a guarantor for student loans, easing the burden on students and their families.
• KfW not only covers tuition fees but also provides loans for living expenses, making it easier for international students to manage their daily costs.
• KfW’s application process is generally straightforward and efficient, reducing the administrative burden on students.
• As it is a reputable German institution, KfW’s loans are recognized globally, providing students with credibility and confidence in their education financing.

Also Read: Benefits of Education Loans

KfW Bank Germany Student Loans for International Students

The KfW Bank Student Loan is a popular choice for many students in Germany due to its low-interest rates and flexible repayment options. In addition, it offers long repayment periods, making it easier for borrowers to manage their finances after graduation. The loan covers both tuition fees and living expenses, relieving financial burdens during the study period. 

Eligibility Criteria

KfW Bank Germany grants student loans to international students also. The financial entity sanctions loans to eligible applicants, regardless of the income of their parents. To avail of this financial assistance, an overseas student in Germany must meet the following requirements:

• She/they/he must have enrolled in any of the eligible courses at a German university affiliated with the state
• She/they/he must be within the age bracket of 18 to 44 years

Those who meet the above criteria must fall within any of the following categories:

• She/they/he must be residing with a German citizen and be registered in the nation, OR
• She/they/he qualifies as an educational resident with a domestic primary residence in the national territory.
• An individual with this status must have graduated from a German high school located in Germany or abroad. 

Also Read: How to Get an Education Loan Against Property to Study Abroad?

Application Process

Students who fulfil KfW Student Loan eligibility criteria can apply online. Here is a step-by-step guide to applying for this financial support:

• Visit the official website of this Germany-based bank: www.kfw.de/studienkredit-antrag
• Now click on the “Zum Online-Antrag” option from the menu. This option directs you to the information page that enlists the requirements for the online application.
• After checking the eligibility requirements, proceed with the application process. Go to the ‘KfW Distribution Partners’ section and select a partner of your choice.
• As soon as you select a partner, you will be redirected to the KfW student loan application form. Fill out the requisite information and upload the requisite documents. 
• After you have completed the form, you will receive an Individual Verification Code and your Personal Contract Number.
• Submit your Individual Verification Code to the selected distribution partner. After this, the partner will verify your details and give a green flag if you meet all the requirements.
• Now, you will have to sign your contract electronically.
• After this, the contract will be transferred to the KfW Bank by the chosen distribution partner.

Also Read: How to Fet an Education Loan to Study Abroad without Parental Income?

Documents Required

To apply for KfW Bank Germany student loans, overseas students will need the following documents:

• Contract offer sections A, B, and C (only if applying through an on-site distribution partner). 
• A valid student matriculation certificate specifying the subject, semester, and intended degree for the requested start of financing.
• Fully filled “Form for non-German applicants” and, for Non-EU citizens, a student visa (if compulsory for their countries) and a valid residence permit.
• Evidence of an existing private bank account (e.g., bank card or statement of account complying with Regulation (EU) Nr. 260/2012 (“SEPA-Regulation”) if applying through an on-site distribution partner).
• If you are in an advanced stage of your 1st year or 2nd year of the course of study, additionally, the fully filled out certificate of achievement form.

Courses Covered

• KfW student loan covers the cost of living of beneficiaries. The loan is available to students pursuing part-time and full-time courses.
• In addition, students who are working while pursuing an eligible course of study can also avail of this educational loan.
• Furthermore, KfW student loans are also provided for distance learning courses.
• Additionally, the financial institution also supports students who opt for semesters abroad while being enrolled at German universities. 

Overseas students enrolled in a state or state-certified universities located within the German territory can avail of KfW Bank Germany student loan while pursuing the following courses:

• 1st UG programme of an individual
• 2nd UG degree of the individual
• PG courses or Supplementary studies
• Master’s programmes
• Doctorate degree

Promotional Funds

Overseas students who avail of KfW student loans receive promotional funds each month. Beneficiaries get a monthly disbursement of up to EUR 650 throughout the loan duration. As soon as the disbursement halts, the student loan plunges into the ‘grace period’. During this duration, a beneficiary needs to pay the loan interest only. After the conclusion of this ‘interest-only phase’, a borrower needs to start paying off the educational loan. This duration is termed the ‘repayment phase’. 

Total Loan Amount

Now that we are aware of promotional funds, let us have a look at the available loan amount. The total loan amount depends on the course duration. Here is the maximum loan financing amount available to KfW Bank student loan beneficiaries.

Number of Semesters	Loan Amount
6	EUR 23,400
10	EUR 39,000
14	EUR 54,600

Also Read: Maximum Education Loan Available to Study Abroad

KfW Bank Germany Student Loan Financing Term

KfW Student Loan financing term is divided into 3 periods- Disbursement Phase, Grace Period, and Repayment Period. The bank has categorised the phases to ease the loan disbursement and collection processes. This classification also helps students realise their loans in due time and repay without defaulting on loans. 

Let us now understand all these phases in detail. 

Disbursement Phase

The duration of the disbursement period for financing an undergraduate first or second-degree course depends on your age and the start of the financing. If you are up to 24 years old, it will cover up to 14 semesters; if you are up to 34 years old, it will cover up to 10 semesters; and if you are up to 44 years old, it will cover up to 6 semesters. 

However, students up to 24 years old can only apply for the KfW Student Loan for a maximum of 10 semesters. For postgraduate or doctoral studies, students up to 44 years old can receive a loan commitment of up to 6 semesters. The students must not be over the age of 44 years on the 1st of April or 1st of October of the year in which the loan starts. 

Also Read: Education Loan Sanction Letter

Grace Period

After receiving the loan amount, there is an ensuing grace period of 18 to 23 months at KfW Bank Germany. During this period you don’t have to make any repayments. If you didn’t choose an interest deferral, you will only need to pay the interest on the disbursed loan amount during this time. However, if you prefer, you can request to shorten the grace period to a minimum of 6 months.

Repayment Period

Throughout the repayment period that follows, you will repay your loan through monthly instalments. These instalments will include both the interest and the principal amount. You have a maximum of 25 years or until your 67th birthday to complete the repayment. The minimum monthly instalment required is EUR 20.

Also Read: How to Pay Student Loans with Credit Cards?

FAQs

Stay in tune with Fly Finance to avail of study abroad loans and international money transfer services. For proper guidance, connect with our experts at 1800 572 126.