Education Loan for Germany: Your Complete Guide to Funding Studies Through PayStudy

Germany is one of the world’s most sought-after study destinations, welcoming over 350,000+ international students each year, including thousands from India. With 40+ globally ranked universities (QS Rankings), world-class research infrastructure, and a strong focus on innovation, Germany remains a top choice for STEM, business, and research aspirants.

One major advantage: Public universities in Germany offer tuition-free education, making studies significantly more affordable compared to the US, UK, or Canada. However, students still need to budget for living expenses, health insurance, housing, and travel. That’s where a student loan for Germany becomes essential.

Whether you're looking for a low-interest overseas education loan, a no-collateral education loan for abroad studies, or fast approval overseas education loan options this guide will help you navigate education loans for Germany with confidence.

Types of Education Loans for Germany

Students can choose between secured and unsecured loans depending on financial profile and documentation.

Secured (Collateral-Based) Education Loan

Requires collateral such as:

Residential/commercial property
Fixed deposits
LIC/insurance policies

Ideal for students aiming for higher loan amounts with lower interest rates.

Unsecured (No-Collateral) Education Loan

No collateral required; based on co-applicant income & credit profile.

Higher interest rate due to risk
Income proof of co-applicant mandatory
Faster processing with private banks/NBFCs

Perfect for students seeking quick digital approvals through a best study abroad loan platform like PayStudy.

Cost of Studying in Germany

While tuition at public universities is free, students must show proof of funds and cover living expenses.

Expense	Average Cost
Tuition Fees	Public: €250 – €300/year Private: €20,000 – €35,000/year
Health Insurance	€110 – €125/month
Accommodation	€350 – €800/month
Food	€140 – €265/month
Utilities	€200 – €250/month
Transport	€20 – €30/month

Students must show €11,208 in a blocked account as proof of living funds during visa approval.

Top Lenders for Germany Education Loans

Education Loans – Secured & Unsecured

Secured Loans (With Collateral)

Lender	Max Loan Amount	Interest Rate
SBI	Up to ₹1.5 Cr	~10.65% – 11.50%
Union Bank of India	Up to ₹1.5 Cr	~9.55% – 10.80%

Unsecured Loans (No Collateral)

Lender	Max Loan Amount	Interest Rate
Axis Bank	Up to ₹40 Lakhs	~11.00% – 11.50%
ICICI Bank	Up to ₹50 Lakhs	~10.85% – 12.50%
IDFC FIRST Bank	Up to ₹35 Lakhs	~11.75% – 13.25%
HDFC Credila	Up to ₹25 Lakhs	~12.00% – 12.75%
InCred / Avanse / Auxilo	Up to ₹20 Lakhs	~12.50% – 13.50%
Prodigy Finance	Up to $100,000	~12.00% – 14.00%