Education Loan for Germany – Cost of Education, Blocked Account, Timeline!
Germany has become a favoured study overseas destination for international students owing to its top universities, academic excellence, low tuition fees, high standard of living, lucrative post study work opportunities, safety etc. Apart from being known for its excellent quality of education, the country also boosts of historic sights, unique architecture, delicious cuisine, and a lot more. All in all, Germany has a lot to offer. International students choosing to pursue their education here can expect to experience cultural diversity, welcoming natives besides high quality of education.
The country being pioneer in the automotive industry, Germany is the first choice of the students planning to pursue engineering programs from an overseas country. As per the QS World Rankings of 2021, 12 German universities are found in the top 200 universities worldwide.
Cost of Education in Germany
The education in Germany is subsidized by the state government and hence the cost of education in Germany is quite on the lower side. Majority of the state-funded German universities do not charge any tuition fees or charge a nominal fee. However, when it comes to private German universities, the cost of education is certainly on the higher side.
Apart from the tuition fee, students are required to pay for their accommodation and living expenses while studying in Germany. Let us take a look at the average cost to study in Germany:
• Average Tuition Fees: Euros 7000 - Euros 12000 per year
• Average Cost of Living: Euros 10356 per year
So, it is evident that the cost of education in Germany is quite on the affordable side. Even then, to cover the tuition fees and other expenses, a good number of students tend to get some kind of financial assistance. An education loan for study in Germany is a great option to fund higher studies.
Loan Options for Germany
International students willing to apply for an overseas education loan can opt for any one of the below loan options:
• Secured Overseas Education Loan: An education loan that requires to attach a security or collateral against the loan amount. The collateral can be any movable or immovable asset.
• Unsecured Overseas Education Loan: An education loan that do not requires any kind of security or collateral against the loan amount. Loan is sanctioned solely on the basis of co-applicant’s creditworthiness and the CIBIL score.
For secured overseas education loans, there is no limit on the maximum loan amount that can be borrowed however in case of an unsecured overseas education loans, the maximum loan amount offered is of INR 20 Lakhs depending upon the profile of the student. This, again, depends on the academic profile of the students and the financial profile of the co-applicant.
Five Key Stages to Follow!
• Stage 1 - Receive the Admit Letter
The first stage in to apply at the German University and receive the admit letter to study for a degree program at the university.
• Stage 2 - Apply for an Education Loan
As soon as the student receives the offer letter from the German University, he/she should submit the education loan application to the financial institution and get the loan sanctioned.
• Stage 3 - Open a Blocked Account
A Blocked account is kind of savings account that one needs to open with a Germany-based banks like Deutsche Bank, Fintiba, Kotak Mahindra or Capital India Finance Limited.
• Stage 4 – Deposit the amount
Students are required to deposit tuition fees and living expenses of one-year into the university account and Blocked account respectively.
• Stage 5 – Apply for a Student Visa
As soon as the tuition fees and the living expenses are acknowledged, students should proceed and apply for a student visa.
How does a Blocked Account works?
Blocked account plays a key role in visa process for Germany. Prior to the visa process, students are required to deposit a sum of 10356 Euros to the blocked account to show that they have enough amount to support their living while staying in Germany.
On reaching Germany, living expenses of each month i.e., 863 Euros will be released in the Blocked account of the student.
Financial Institutions Offering Education Loan for Germany
Eligibility Criteria to apply for an Education Loan
To apply for an education loan to study in Germany, students must meet the following requirements:
• An applicant should be a citizen of India
• An applicant must have obtained admission to a recognized university that is recognized by the funding institution and eligible for grant
• An applicant must have secured admission to a job-oriented course
List of documents required for an education loan
Financial institutions provide education loan for abroad studies to deserving students. However here is a list of documents that need to be submitted at the time of apply for the loan:
• Letter of admission from the recognized German Institution
• Duly filled loan application form
• Residence proof
• KYC details of the Guarantor, co-borrower, student
• Bank statements of Guarantor, co-borrower, student
• Proof of income of Guarantor, co-borrower
Right Time to Apply for an Education Loan
As soon as student receives the offer letter from the German University, he/she must approach us or the financial institution and submit the duly filled education loan application form.
Here is a quick rundown of the timeline for the education loan process for Germany:
• Education loan process: Up to 2 – 3 weeks via ELAN Loans
• Blocked account process: Up to 1 week
• Visa process: Around 4 – 6 weeks
Availing an education loan for higher education seems to be a liability however if a student goes about it in the correct way, this won’t be the case.
We understand that applying for an education loan is quite a lengthy and time-taking process hence we recommend students to get in touch with our experts at ELAN Loans and be rest assured. Here, we help the students, right from choosing the correct financial institution, getting loan sanctioned to the disbursement process. Book a free consultation with us NOW!