Student Loans in Germany (A Complete Guide for International Students)

In this guide, we’ll explore different loan options, eligibility requirements, and how international students can secure financial assistance.

Can International Students Get a Loan in Germany?

Student Loans in Germany for International Students

1. Loans Offered by Germany for International Students

Many banks and financial institutions in Germany offer loans specifically for students. Some of the top options include:

1.1 KfW Student Loan

One of the most popular education loans in Germany is for international students. It is available to EU and international students under certain conditions.

• Eligibility: Available to students under 44 years of age enrolled at a recognized German university.
• Loan Amount: €1,000 to €54,600, disbursed in monthly installments of €100 to €650.
• Interest Rate: Variable, usually lower than private loans.
• Repayment: Begins 6–23 months after the last disbursement, with flexible terms.

Learn more about KfW student loans here. 

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1.2 Deutsche Bank Student Loan

It provides loans for international students in Germany with flexible repayment terms for students currently studying in Germany. However, many loans require a German co-signer, which can be challenging for international students to arrange.

• Eligibility: Available for international students with a blocked account at Deutsche Bank.
• Loan Amount: Typically covers tuition and living expenses, but exact amounts depend on the applicant’s financial profile.
• Interest Rate: Competitive but varies based on the applicant's creditworthiness.
• Repayment: Begins after course completion with fixed monthly payments.

1.3 Sparkasse and Commerzbank Loans

Private banks offer international student bank loans in Germany, but their eligibility requirements can be more strict. Loan terms depend on many factors. It is best to contact the bank directly for specific details. Conditions can change from one case to another.

• Eligibility: Requires a German resident guarantor or strong financial history.
• Loan Amount: Varies depending on bank policy and borrower profile.
• Interest Rate: Higher than government-backed loans.
• Repayment: Starts soon after graduation, with repayment periods between 5 to 10 years.

Check student loan details at Sparkasse & Commerzbank.

1.4 BAföG (Federal Student Aid Program)

While primarily for German students, certain international students may qualify based on residency status.

• Eligibility: International students must have lived in Germany for at least five years before starting their studies. They can also qualify if related to a German or EU national. 
• Loan Amount: Up to €861 per month.
• Interest Rate: 50% of BAföG is a grant (non-repayable), while the remaining 50% is a zero-interest loan.
• Repayment: Begins five years after course completion, with small fixed monthly payments.

Find out how BAföG supports international students.

1.5 Student Loans from Student Unions

Many universities in Germany provide low-interest loans through their student unions. These loans help students who face financial difficulties. To learn more about these loans, join the student union that offers them. Then, ask about the details and eligibility. 

• Eligibility: Enrolled students facing financial hardships.

• Loan Amount: Varies by university or student union but typically ranges between €500 and €5,000.

• Interest Rate: Often low or zero interest.

• Repayment: Flexible, with repayment schedules determined by the issuing student union.

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2. Student Loans for Indian Students Studying in Germany

Indian students who want to study in Germany can also apply for education loans within their own country. These loans are available from Indian banks.

2.1 ICICI Bank Education Loan

A popular student loan in India is the ICICI Bank Education Loan. It helps students who want to study abroad. This includes covering tuition fees, living costs, travel expenses, study materials, and accommodation in foreign universities. The loan is made for Indian students accepted into recognized universities overseas, including in Germany.

• Eligibility: Indian students with confirmed admission to a recognized German university.
• Loan Amount: Up to ₹1 crore (with collateral), up to ₹40 lakh without collateral.
• Interest Rate: 9.5%–12.5% per annum.
• Repayment: Starts after course completion, with flexible repayment for 10–15 years.

Learn about ICICI Bank Loans. 

2.2 State Bank of India (SBI Education Loan)

The State Bank of India (SBI) Education Loan helps Indian students. It provides money for Master's (MS) and Bachelor's degrees at approved universities in Germany.

• Eligibility: Admission to a recognized German university.
• Loan Amount: Up to ₹1.5 crore (with collateral).
• Interest Rate: Starts at 9.5% per annum.
• Repayment: Begins one year after course completion.

Explore SBI Education Loan options. 

2.3 HDFC Credila Education Loan

• Eligibility: Students with co-applicants in India with a strong financial history.
• Loan Amount: Up to ₹50 lakh (with collateral).
• Interest Rate: 9%–13% per annum.
• Repayment: EMI starts after a moratorium period.

Check HDFC Credila Education Loan options.

2.4 Punjab National Bank (PNB Udaan Loan) 

Punjab National Bank (PNB Udaan Loan) is designed to help Indian students. It supports those studying abroad, including in Germany. This loan is designed to help with important costs. These include tuition fees, living expenses, travel costs, study materials, and housing.

• Eligibility: Indian students admitted to a recognized German university.
• Loan Amount: Up to ₹20 lakh (without collateral), higher amounts possible with security.
• Interest Rate: 8.8%–10% per annum.
• Repayment: Starts after a moratorium period, up to 15 years for full repayment.

Find out more about PNB Loans.

2.5 Axis Bank Education Loan

Axis Bank provides secured loans that require collateral and unsecured loans that do not. The borrowing limits vary based on the applicant's financial profile. The repayment terms are flexible. They usually start after you finish the course. The loan can last up to 15 years. This depends on how much you borrow and the repayment plan you choose.

• Eligibility: Indian students admitted to a recognized German university.
• Loan Amount: Up to ₹40 lakh (without collateral), higher amounts available with collateral.
• Interest Rate: 10%–12% per annum.
• Repayment: Starts after course completion, up to 15 years for repayment.

Learn more about the Axis Education loan.

2.6 Canara Bank Education Loan 

Canara Bank Education Loan is designed to support Indian students pursuing higher education outside India. Canara Bank offers secured loans that need collateral and unsecured loans that do not. The loan limits vary based on whether you provide collateral.

• Eligibility: Indian students pursuing undergraduate or postgraduate studies in Germany.
• Loan Amount: Up to ₹20 lakh (without collateral), higher amounts available with security.
• Interest Rate: 9%–11% per annum.
• Repayment: Flexible tenure up to 15 years.

See student loan options from Canara Bank. 

In addition to education loans, Indian students can also explore various scholarships to study in Germany. Several government and private scholarships, such as DAAD scholarships are quite famous. Read more about scholarships for Indian students in Germany. 

3. Student Loans for UK Students Studying in Germany

British students who need funding to study in Germany can consider:

3.1 Future Finance Loans

A UK-based lender that funds students globally, including those studying in Germany.

• Eligibility: UK students enrolled in a full-time degree program.
• Loan Amount: Up to £40,000.
• Interest Rate: 6%–10% per annum.
• Repayment: Starts six months after graduation.

Learn about Future Finance student loans.

3.2 UK Government Postgraduate Loan

While this is mainly for UK institutions, some programs may allow students to study abroad with these funds.

• Eligibility: UK students enrolled in specific eligible courses.
• Loan Amount: Up to £12,000.
• Interest Rate: Government-set rate, varies annually.
• Repayment: Starts once income exceeds a set threshold, deducted from salary.

Check UK Government Postgraduate Loan details.

3.3 Barclays Education Loan
Provides financial aid for students pursuing higher education abroad, including in Germany.

• Eligibility: UK students admitted to a recognized institution.
• Loan Amount: Depends on the borrower's credit profile.
• Interest Rate: Competitive, subject to bank evaluation.
• Repayment: Flexible repayment terms with various options.

Explore Barclays Education Loan options.

3.4 HSBC Student Loan

Available for UK students seeking financial support for international education.

• Eligibility: UK students enrolled in full-time courses abroad.
• Loan Amount: Varies based on the applicant’s financial background.
• Interest Rate: Competitive, varies per application.
• Repayment: Repayment options tailored to student needs.

Find out about HSBC student loans.

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4. Loans Offered by International Institutions for Students Studying in Germany

If you don’t qualify for a loan from a German or home-country bank, you can consider international lenders and organizations that provide international student loans in Germany. 

4.1 Prodigy Finance

Prodigy Finance provides financial support specifically for international students without the need for a co-signer, guarantor, or any asset-based security. This loan is a great option for students who do not have access to collateral or a co-signer but still need financial assistance to study in Germany.

• Eligibility: Postgraduate students in select universities.
• Loan Amount: Covers tuition and living expenses up to €100,000.
• Interest Rate: 7%–12% per annum.
• Repayment: Begins six months after graduation.

Read more about the Prodigy Finance Loans and how to avail them.

4.2 MPower Financing

MPower Financing offers student loans to international students without requiring a co-signer, guarantor, or collateral. 

It's ideal for students lacking family financial support or assets for a traditional bank loan.

• Eligibility: Available to students from 190+ countries.
• Loan Amount: Up to $100,000.
• Interest Rate: 11%–14% per annum.
• Repayment: Starts immediately with small monthly installments.

Discover more details about the MPower Financing. 

4.3 Edupass Loans

Designed for students who require financial assistance but do not have co-signers or credit history in Germany.

• Eligibility: International students without a credit history.
• Loan Amount: Depends on financial evaluation.
• Interest Rate: Customizable based on applicant profile.
• Repayment: Tailored to students’ post-graduation earnings.

See loan details offered by Edupass Loans.

4.4 International Student Loan Program (ISLP)

The International Student Loan Program (ISLP) offers financial assistance specifically for students enrolling in universities outside their home countries. These loans are tailored to meet the unique financial needs of international students who may not qualify for government-backed student loans or traditional bank loans due to residency and credit history restrictions.

• Eligibility: Must be an enrolled student in an approved university.
• Loan Amount: Varies based on course duration and financial need.
• Interest Rate: Depends on credit profile and co-signer (if applicable).
• Repayment: Options include interest-only payments while studying or deferred repayment.

Find more details about the ISLP Loan Program. 

Step-by-Step Guide: How to Apply for a Student Loan in Germany

Applying for a student loan in Germany involves several key steps. Follow this structured process to ensure a smooth application:

1. Research Loan Options – Compare different loan providers, including German banks, private lenders, and international institutions.

2. Check Eligibility – Review the eligibility criteria for each loan, including nationality, enrollment status, and co-signer requirements.

3. Gather Required Documents – Prepare essential paperwork such as your admission letter, passport, visa, financial statements, and proof of enrollment.

4. Submit the Application – Apply online or visit a bank branch, depending on the lender's process.

5. Loan Approval & Disbursement – Once approved, the loan amount is transferred directly to your university or personal account. Once you have the money, you can open a Blocked Account in Germany or discuss with your university how to use the funds to get your student visa.  

6. Repayment Process – Understand your repayment terms, grace periods, and interest accumulation before signing the loan agreement.

Alternative Funding Options for Students in Germany

Not all students want to take out loans due to concerns about debt and repayment. Fortunately, there are several other ways to finance your studies in Germany. Here are some effective alternatives:

1. Scholarships and Grants

Germany offers a variety of scholarships to international students, many of which are merit-based, need-based, or field-specific. Unlike loans, scholarships do not need to be repaid. Some key options include:

• DAAD (Deutscher Akademischer Austauschdienst) – Germany’s largest organization offering scholarships for international students.
• Deutschlandstipendium – A merit-based scholarship program funded by the German government and private sponsors.
• University-Specific Scholarships – Many universities in Germany have their own financial aid programs for outstanding international students.

2. Part-Time Jobs for Students

International students in Germany are allowed to work part-time to support their living expenses. The most common student jobs include:

• Student Assistant (HiWi) Jobs – Working in research departments or university offices.
• Retail & Hospitality Jobs – Positions in cafes, restaurants, or shops.
• Internships – Many companies offer paid internships that align with students' fields of study.

💡 Students can work up to 120 full days or 240 half days per year without requiring a special work permit.

3. Sponsorship Programs (Bildungskredit & Company Sponsorships)

Certain organizations, foundations, or even private companies offer sponsorships in exchange for future commitments:

• Corporate Sponsorships: Some companies fund students in exchange for a work contract post-graduation.
• German Government’s Bildungskredit Program: A low-interest loan alternative that provides financial support for students in the final stages of their studies.

4. Crowdfunding and Community Support

Some students raise money through crowdfunding platforms like GoFundMe or education-specific platforms like FundMyDegree. Additionally, religious and cultural organizations sometimes financially support students pursuing higher education abroad.