Education Loan for Germany: Complete Guide for Indian Students

Planning to move to Germany for your higher education? Yes, we have all been there, where we want our future to shine bright, but do not have the funds! Well, that’s where we swoop and help you. We will inform you about the education loans for Germany that will help you secure your foreign education journey. 

So tighten your seatbelt and learn how you can fulfil your education journey in Germany with the help of Student Cover. 

Cost of Studying in Germany (A Short Overview)

As of 2025, more than 40,000 Indian students have chosen Germany for their higher education. And while public universities are offering free education, there are other expenses like traveling, living, and blocked accounts. 

So here’s a short overview of the cost of studying in Germany:

• Public Universities: Most public universities don’t charge any tuition fees for international students. However, you need to make a semester contribution — typically between €250 and €300 per semester. This will cover administrative costs and often includes a public transport ticket.
• Private Universities: Private universities can charge you a hefty tuition ranging from €5,000 to €20,000+ per year. It all depends on the program and institution you have selected.

Aside from tuition, you must also budget for:

• Health insurance: Around €110/month
• Books and materials: Approx. €200–€300/semester

Living costs: Roughly €850–€1,200/month, including rent, food, and transport.

Types of Loans

Financing your education in Germany is easier with the right loan. And Student Cover helps you compare and choose from a range of study loans for Germany that are best suited for Indian students.

1. Loans with Collateral

These are secured loans where you pledge an asset (like property or fixed deposits) as security.

• Offered by: Public and private sector banks
• Loan amount: No higher amount limit (varies by lender)
• Benefits: Lower interest rates, longer repayment tenure
• Ideal for: Students attending top-ranked public universities

2. Loans without Collateral

Also known as unsecured loans, these don’t require collateral.

• Offered by: NBFCs and private lenders (via Student Cover’s partner network)
• Loan amount: Up to ₹1.5 Cr.
• Benefits: Faster processing, flexible co-applicant options
• Ideal for: Students without assets or property to pledge

3. Domestic vs International Lenders

Looking for the best loan for you?

Explore options, compare lenders, and get expert help — only on Student Cover.

List of Popular Lenders

Student Cover collaborates with a diverse range of banks and NBFCs to offer both secured (with collateral) and unsecured (without collateral) education loans. 

Here's a breakdown:

Secured Loans (With Collateral)

These loans require the borrower to pledge an asset (like property or fixed deposits) as security. They typically offer lower interest rates and longer repayment tenures.

Unsecured Loans (Without Collateral)

These loans do not require any collateral, making them ideal for students without significant assets. They might have slightly higher interest rates, but they offer quicker processing.

International Lenders

These lenders cater specifically to international students, offering loans in foreign currencies, which can be beneficial for covering expenses in Germany.

Key Takeaways

• Secured Loans: These kinds of loans are Ideal for students with assets to pledge. Therefore, they offer lower interest rates and longer repayment periods.
• Unsecured Loans: These loans are suitable for students without collateral. So they come with faster processing times and flexible terms.
• International Lenders: They provide loans in foreign currencies without the need for collateral or co-signers. It is beneficial for covering expenses directly in Germany.

Looking for the best loan tailored to your needs?

Explore options, compare lenders, and get expert assistance at Student Cover.

Eligibility Criteria for a Study Loan for Germany

To apply for a study loan for Germany, students must meet certain basic eligibility requirements set by banks and NBFCs. These ensure that both the student and the co-applicant (if required) have the financial and academic standing to repay the loan.

Basic Requirements

Co-applicant Requirements

Most lenders require a financial co-applicant (parent, sibling, guardian) with a stable income source, especially for unsecured loans.

Co-applicant Income: Should meet the lender’s minimum income criteria (usually ₹30,000–₹50,000/month) Creditworthiness: Good credit score (CIBIL), stable job or business Relationship: Must be an immediate family member (varies by lender)

Other Factors Considered

• Age: Typically 18–35 years
• Course duration and employability after graduation
• University ranking and visa approval rate

Application Process: Education Loan for Germany

Applying for an education loan, especially for an MS in Germany, is easier than ever. With expert support from partners like Student Cover, fast-track approvals are possible along with hassle-free processing. 

So, here’s how the step-by-step process works:

1. Loan Eligibility Pre-check

Before applying, you’ll go through a quick eligibility check. This involves basic details like your academic background, chosen university in Germany, co-applicant income, and preferred loan amount. Student Cover helps you instantly identify the lenders you qualify for, with or without collateral.

2. Offer Generation

Once eligibility is confirmed, multiple loan offers from top banks and NBFCs are generated for you to compare. You can review interest rates, tenures, collateral needs, and other terms — all in one place.

3. Document Upload

You then upload the necessary documents online. This usually includes an admission letter from a German university, KYC documents, income proof of a co-applicant, academic records, and collateral documents (if applicable). Student Cover’s platform makes this part simple and secure.

4. Loan Sanction

After document verification, the lender issues a sanction letter confirming your education loan approval. This letter is often required during the visa process, especially for MS applicants heading to Germany.

5. Loan Disbursement

Once you’ve received your visa and completed the disbursement formalities, the sanctioned amount is disbursed — either to your blocked account or directly to your university in Germany.

Fast-Track Disbursal Available

With Student Cover’s premium lender partnerships, many students benefit from faster processing times. Sometimes it takes as little as 5–7 working days from application to disbursal!

Start your journey today.

Apply for your education loan for MS in Germany and other courses with expert guidance and lender comparison at Student Cover.

Top Colleges in Germany— A Short Overview

Germany is home to some of the best universities in Europe. Furthermore, it is known for academic excellence, cutting-edge research, and strong industry ties — especially in engineering, management, medicine, and natural sciences.

Below are some of the top-ranked institutions across various fields:

Top Universities in Germany

Top Universities by Field

Scholarships— Because a Little Help Never Hurts

Germany is already an affordable country for education. On top of that, scholarships make it accessible for students. You will find several international organizations that offer financial support for students all over the world, including Indians. 

Major Scholarship Options

Tips for Applying

• Start early – deadlines can be 6–12 months before your course begins.
• Tailor your motivation letter to each scholarship.
• Maintain good academic records and gather strong recommendation letters.
• Make sure your CV is clear, concise, and up to date.

Expenses Covered by Education Loans

An education loan for Germany doesn’t just cover your tuition — it supports nearly every essential cost of studying abroad. Whether you're opting for a secured or unsecured loan, most lenders cover a wide range of academic and living expenses.

Covered Expenses Include:

• Tuition Fees: Paid directly to the university in Germany
• Living Expenses: Rent, groceries, utilities, transport, etc.
• Blocked Account: Some lenders also fund the Blocked Account amount required for the German student visa
• Visa Fees: Charges for applying and processing your German student visa
• Travel Expenses: Airfare for your journey to Germany
• Health Insurance: Mandatory insurance costs are covered under the loan
• Books and Study Material: Academic-related resources and supplies
• Laptop/Equipment: Sometimes included, especially for tech programs

Tip 1: Always check with your lender (or Student Cover) about Blocked Account funding, as not all lenders offer this benefit, but several do under unsecured loan options.

Need help choosing the right loan that covers it all?

Blocked Account for Germany

A Blocked Account is a mandatory financial requirement for all international students applying for a German student visa. It proves you have enough funds to support yourself while studying in Germany.

How Much Is Required?

As of now, students must show at least €11,208 per year or approximately €934 per month in a Blocked Account. You must deposit this amount before your visa interview and cannot access it all at once — only in monthly withdrawals.

Popular Blocked Account Providers

• Fintiba – Widely accepted, fast digital setup, partner of Deutsche Bank
• Coracle – Low fees, reliable service, fully digital process

Many students also get this amount funded by education loans — check with lenders via Student Cover if you’re eligible.

FAQs

1. Can I get an education loan for Germany without collateral?

Yes, several NBFCs and private lenders—like InCred, Avanse, Auxilo, and HDFC Credila—offer unsecured loans for studying in Germany. Eligibility depends on your academic background, co-applicant income, and chosen course/university.

2. Does the education loan cover the Blocked Account amount?

Yes, some lenders do cover the €11,208 Blocked Account amount as part of the total loan package. This can be transferred directly before your visa interview. Always check with your loan advisor or Student Cover partner to confirm.

3. Is a co-applicant mandatory for an education loan for Germany?

For unsecured loans, a co-applicant with a stable income is usually required. For secured loans (with collateral), co-applicant requirements may be more flexible depending on the asset pledged and lender policies.

4. When should I apply for the education loan?

You should ideally apply for a loan immediately after receiving your admission letter, as the sanction letter is often required for your visa application. The entire process can take 7–30 days, depending on the lender and type of loan.

5. Can I repay the loan after getting a job in Germany?

Yes. Most lenders offer a moratorium period (course duration + 6–12 months), during which you’re not required to make repayments. Repayment typically starts after you secure a job post-graduation.

Conclusion

An education loan for Germany isn’t just about funding your tuition. It's your ticket to a world-class education, financial independence, and peace of mind. From covering your tuition fees to your living expenses and visa costs, your loan will ensure you're fully prepared for your journey to Germany.

If you’re thinking, how to repay your education loan, let me assure you that you can apply for various part-time jobs while studying in Germany. They have a ton of opportunities that will help you earn and study at the same time. 

But choosing the best loan, comparing lenders, and getting quick approvals can be overwhelming, and that’s where Student Cover comes in. So choose the right loan, go abroad, and study for a brighter future.