Germany is a top choice for higher education due to its high-quality academic programs. The country offers many professional courses in fields such as engineering, law, management, social sciences, mathematics, and natural sciences.
As a result, many Indian students choose to pursue higher studies in Germany. In fact, according to The Print, over 42,578 Indian students enrolled in German institutions last year. However, studying abroad can be costly, with expenses such as tuition, living costs, and other fees adding up quickly. This is where an education loan for Germany can make a significant difference.
This article will discuss in detail the cost of studying in Germany and how a student loan for Germany can help manage these expenses.
What is the cost of studying in Germany?
While public universities in Germany often have low or even non-existent tuition fees, there are still several other expenses to consider. These include administrative fees, living costs, health insurance, and travel expenses.
The cost of living can differ greatly based on your city and lifestyle choices. On average, you might need between €850 to €1,200 per month to cover food, accommodation, transportation, and other basic necessities.
If you choose a private university, tuition fees can range anywhere between €10,000 to €30,000 per year, depending on the course and institution.
Why consider an education loan for study in Germany?
Given the financial demands of studying in Germany, an education loan can be an essential tool to support your studies without overwhelming your finances. Here are the key benefits of applying for an education loan.
1. It covers everything from your tuition fees to living expenses, travel costs, laboratory fees, and the purchase of books and laptops.
2. It offers flexible repayment options, allowing you to start repayment after completing your studies.
3. It comes with competitive interest rates, resulting in lower EMIs and manageable monthly payments.
4. It allows you to focus on your studies without the stress of financial burdens.
5. The major benefit is that students can apply for this loan with a parent or guardian as co-applicants.
What are the eligibility criteria for a study loan for Germany?
To be eligible for a study loan for Germany, you must meet the eligibility criteria set by the lending institution. Typically, the following criteria apply:
– The applicant must be of Indian nationality.
– Must be between 18 to 35 years.
– The applicant should have completed a 12th or a diploma.
– The applicant should pursue a graduate or postgraduate degree or a PG diploma in professional education.
– The applicant should have applied to a listed, recognised, and accredited institute in India or abroad.
In case, you have applied for a loan of more than Rs. 75 lakhs, you’ll have to provide security or collateral, like a fixed deposit or a property.
What documents are required for a study loan for Germany?
When applying for an education loan to study in Germany, you’ll need to provide a few documents. These include identification proof, academic records, and financial documents. The table below outlines the required documents for each category.
Category
Documents
ID Proof
Passport, PAN card
Academic Documents
10th mark sheet, 12th mark sheet, Available semester mark sheets/transcripts, Degree Entrance exam scores (GRE/IELTS/TOEFL/ GMAT)
Financial Documents
Last 3 months’ salary slips, Last 2 years’ Form 16, Last 3 years’ income tax returns (ITRs), Balance sheets and profit & loss accounts (if applicable), business proof (if applicable), Bank statements for the last 6 months
How to apply for an education loan for Germany in India?
Before applying for an education loan to study in Germany, you must ensure that you meet the eligibility criteria set by your chosen financial institution. The basic steps to apply for a study loan are as follows:
Step 1 – Visit your preferred financial institution’s website.
Step 2 – Fill out the online application form for a student loan.
Step 3 – Submit the required documents.
Step 4 – Once you submit the loan application and documents, the financial institution will review the submitted documents.
Once everything is verified, the sanctioned loan amount will be disbursed into your account.
Wrapping up
Studying in Germany offers incredible opportunities for academic and professional growth, but it comes with significant financial responsibilities. A student loan for Germany can help bridge the gap between your academic aspirations and financial reality, allowing you to pursue your studies without stress.
At Tata Capital, we offer education loans of up to Rs. 2 crore with competitive interest rates. Our loans feature flexible repayment terms, minimal documentation, and swift disbursal. To apply, visit the Tata Capital website or download our app today and jet off to Germany to achieve your academic ambitions.
17 October 2024
4 mins read
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