Education Loan for Germany: How can Family & Friends help with Proof of Funds?

As we see Germany is gaining ground as a top study abroad preference among Indian students for courses in Engineering, Natural Sciences, and Technology. The rising popularity has led to projections of as many as 114,499, which is a staggering 297.82% growth as compared to 28,773 enrolments in 2021.

But it comes with its own set of financial challenges for students. Let’s explore the concept of blocked account, a crucial requirement for obtaining a student visa for Germany as per the recent updates. You'll learn about alternative ways to demonstrate proof of funds, including how friends and family can lend a helping hand. 

We'll also shed light on ways students can fund their education. Whether you're just starting your research or finalizing your plans, this guide will equip you with valuable insights to navigate the financial landscape of studying in the country and even choose the right education loan for Germany. Before delving into the options for proof of funds, let’s start with understanding the blocked account.

What is a Blocked Account for Study in Germany?

Blocked accounts are an essential requirement for international students to study in Germany. The points given below make the concept easier to understand.

• Also known as the Sperrkonto it is a special bank account that is needed for student visas, or for professionals to work.

• The country requires students to have a blocked account if they’re planning to study there.

• The money is frozen till the student arrives in Germany and then they will be able to withdraw a certain amount every month for their expenses.

• Earlier the amount required for the blocked account was €11,208 per year.

• This was revised in 2024. As of September 1st, 2024, the amount required for the blocked account increased to €11,904 per year.

• It serves as a guarantee that the student can afford study in Germany. This also acts as proof of funds while applying for a Germany Student Visa.

Apart from the Blocked Account, there are other ways in which international students can show proof of funds for the Germany Student Visa. They include parental income, scholarships in Germany, and bank guarantees. They can also get help of friends and family for this, which we will discuss in the upcoming section.

Proof of Funds & Education Loan for Germany

Showing proof of funds is a necessary step for studying in Germany. Arranging the amount of money can be a challenge for students that’s where loans can help. Students can get pre-visa disbursements of Education Loan for Germany to show proof of funds, or they can take the help of family or friends for it. 

Here are different situations in which family or friends can help students with proof of funds in different situations.

Relatives or Friends who are Permanent Residents of Germany

Students who have relatives or friends in Germany who are residents can get help from them for the proof of funds, where the relatives can put the money in their blocked account directly or can give a letter of consent for student living expenses.

Relatives in the Home Country

International students can get assistance from their relatives even when they are in their home country in 2 ways.

• The first way is where the relatives can directly fund the blocked account.

• Another way is that they can put up the property for lease and show the rental income as proof of funds. The advantage of using this method is that they do not have to directly put the money into their account.

In the next section, we will take a look at how Foreign Education Loans can be useful in funding education in Germany.

Education Loan for Germany for International Students

Education Loans help students fund their studies without worrying about the financial burden. These loans cover all the aspects of a student’s expenses with favorable repayment options. Education loans for Germany also fund all the student’s expenses including cost of studying and living.

Banks and Financial Institutions in India offer various education loan schemes for education in Germany that allow students to fulfill their study abroad dreams. These banks offer 2 types of loans: collateral loans and non-collateral loans. Collateral loans are offered to students against certain security, like property while non-collateral loans are offered based on the applicant’s creditworthiness. Both kinds of loans have their advantages.

To know more about education loans for Germany, students can reach out to study abroad loan experts at Élan Loans. Our experts help students understand their needs, guide them, and help them in finding and selecting the right loan option. Our experts also help students understand the various financial aspects of studying abroad and assist them not just in finding the best bank for education loans for abroad studies but also in swift applications and loan disbursements. So, if you are looking for education loans for Germany, Élan Loans will be a one stop solution for you.