Education Loan Options for MS in Germany: Scholarships, Loans & More

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Apr 17, 2023 07:15 AM

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As the world becomes more globalized, many Indian students consider studying abroad to gain a world-class education and expand their horizons. One popular destination for higher education is Germany, known for its excellent universities and research opportunities. However, the cost of pursuing a master's degree in Germany can concern many students, particularly concerning living expenses. This blog will explore the various funding options available for Indian students pursuing master's in Germany, including scholarships, education loans, sponsorships, and more.

Cost of Studying Masters in Germany

Studying master's in Germany is becoming a popular choice among Indian students, thanks to the high quality of education and research opportunities available in Germany. One of the major attractions of studying in Germany is that public universities have no tuition fees. This means that Indian students can save considerable money on their academic education. However, they still need to consider the cost of living in Germany.

According to the latest data, the average yearly expenses for an international student in Germany are around 11,208 euros. This includes accommodation, food, transport, health insurance, books, and other essential fees. However, it is necessary to note that the cost of living in Germany can vary depending on the student's location, lifestyle, and personal choices.

To help Indian students get a better idea of the cost of studying master's in Germany, let's break down the expenses:

Accommodation: The cost of housing differs depending on the location, type of accommodation, and amenities available. On an average, Indian students can expect to pay between 300-700 euros per month for a shared room in a student dormitory or a rented apartment. Some popular websites to search for accommodation in Germany include WG-Gesucht, ImmobilienScout24, and Studenten-WG.

Food: The cost of food in Germany can differ depending on the type of food and the location. On an average, Indian students can expect to spend around 200-300 euros per month on food. It is recommended to cook at home and shop at discount supermarkets such as Aldi, Lidl, and Netto to save money.

Transport: Germany has a well-developed public transport system, which includes trains, buses, and trams. Indian students can buy a semester ticket or a monthly pass to travel within the city and nearby areas. On average, the transport cost can be around 50-80 euros per month.

Health Insurance: All international students in Germany are required to have health insurance. The health insurance cost can change depending on the type of insurance and the provider. On an average, Indian students can expect to pay around 80-120 euros per month for health insurance.

Books and other expenses: Indian students may also have to spend money on books, stationery, and other costs such as leisure activities, phone bills, and internet connection. These expenses can average be around 50-100 euros per month.

Overall, the cost of studying master's in Germany can be affordable for Indian students compared to other famous study abroad destinations. However, planning and budgeting for the expenses in advance is vital to avoid any financial difficulties during the studies. With proper planning, Indian students can have a fulfilling and enriching academic journey in Germany.

Scholarships for Masters in Germany

Scholarships are among the most popular funding options for Indian students pursuing master's in Germany. Several scholarship programs are available for international students, including those specifically aimed at Indian students. These scholarships can cover some or all of the expenses associated with studying in Germany, including tuition fees, living expenses, travel costs, and more.

1. DAAD Scholarships:

The DAAD (Deutscher Akademischer Austauschdienst) is a scholarship program that offers financial aid to international students who wish to study in Germany. Different kinds of DAAD scholarships are available, including those for postgraduate studies, research projects, and language courses. Indian students can apply for the DAAD scholarship online or online through their home country's DAAD office. The eligibility, application process, and deadlines for the scholarship can vary depending on the program.

DAAD Master's Scholarships

DAAD Research Grants

DAAD Study Scholarships for Fine Arts, Design/Visual Communication, and Film

DAAD Short-Term Research Grants

DAAD Development-Related Postgraduate Courses (EPOS)

2. Friedrich Ebert Stiftung Scholarships:

The Friedrich Ebert Stiftung (FES) scholarship program empowers talented students pursuing postgraduate studies in Germany. Covering tuition fees, living expenses, and travel costs, FES scholarships pave the way for academic excellence.

3. Heinrich Böll Foundation Scholarships:

The Heinrich Böll Foundation extends scholarships to talented students aspiring to pursue postgraduate studies in Germany. With support for tuition fees, living expenses, and travel costs, these scholarships nurture promising scholars. Indian students can apply online or through the foundation's office in their home country, with criteria, application processes, and deadlines tailored to each program.

4. Konrad-Adenauer-Stiftung Scholarships:

The Konrad-Adenauer-Stiftung scholarship program empowers talented students pursuing postgraduate studies in Germany. Providing financial assistance for tuition fees, living expenses, and travel, these scholarships promote academic brilliance. Indian students can apply online or through the foundation's office in their home country, with specific requirements, application procedures, and deadlines based on the chosen program.

Crafting a Strong Scholarship Application Essay:

To increase their chances of getting a scholarship, Indian students should focus on crafting a solid scholarship application essay. This essay should showcase their academic achievements, personal goals, and motivation for studying in Germany. Students should highlight their research interests, career aspirations, and how learning in Germany will help them achieve their goals. They should also mention any extracurricular activities, leadership experience, or community service they have been involved in.

Scholarships are an excellent way for Indian students to fund their master's studies in Germany. It is essential for students to research and apply for scholarships well in advance of their intended start date and to focus on crafting a solid scholarship application essay. With the proper guidance and support, Indian students can make the most of their academic journey in Germany.

Education Loans for Masters in Germany

Education loans are a viable funding option for Indian students aspiring to pursue their masters in Germany. Several banks and financial institutions in India offer education loans for students who wish to study abroad with competitive interest rates and flexible repayment options. These loans can cover some or all of the expenses associated with looking in Germany, including tuition fees, living expenses, travel costs, and more.

Types of Education Loans Available:

Two types of education loans are available to Indian students pursuing masters in Germany - loans with collateral and loans without collateral. The repayment period, interest rates, and eligibility criteria vary for each type of loan. Here's an overview of both types of education loans:

1. Education Loan Without Collateral:

An education loan without collateral, also known as an unsecured loan, is a loan that does not require the student to pledge any collateral or security to the lender. Several banks and NBFCs offer unsecured loans for students. Here are some of the key features of education loans without collateral:

Repayment period: The repayment period for education loans without collateral from private banks is 20 years, while NBFCs are up to 10 years.

Processing time: Private banks take around seven working days to process the loan application, while NBFCs take about 3-4 working days.

Expenses covered: Private banks typically cover 85% of the costs, while NBFCs can cover up to 100%, including the blocked account.

Co-applicant income requirement: The co-applicant income requirement for education loans without collateral from private banks is more than 35k per month, while NBFCs are more than 25k per month.

Common decline reasons: Both private banks and NBFCs decline education loan applications due to low income, poor CIBIL scores, and other loan obligations.

Documents required: Students must submit several documents when applying for an education loan without collateral. These include KYC documents of the student and co-applicant, relevant mark sheets, admission letter from the university, fee structure, income certificate of the co-applicant, and more.

2. Education Loan With Collateral:

An education loan with collateral, also known as a secured loan, is a loan that requires the student to pledge collateral or security to the lender. Here are some of the key features of education loans with collateral:

Repayment period: The repayment period for education loans with collateral in public banks is up to 15 years, while in the case of private banks and NBFCs, it can be up to 20 years and ten years, respectively.

Processing time: Public banks take around 12-17 working days to process the loan application, while private banks and NBFCs take about 10-15 days and ten working days, respectively.

Expenses covered: Public banks typically cover 90-100% of the total costs, while private banks cover 85%. NBFCs can cover up to 100% of the total expenses.

Common decline reasons: Both public and private banks decline education loan applications for incomplete collateral documents and poor CIBIL scores. NBFCs generally reject applications for low-income and poor CIBIL scores.

Documents required: The documents needed for an education loan with collateral include KYC documents of the student and co-applicant, relevant mark sheets, an admission letter from the university, documents related to security being pledged, fee structure, and more.

Eligibility Criteria:

The eligibility criteria for education loans vary for each bank or financial institution. However, some standard measures include:

The student must be an Indian citizen.

The student must have secured admission to a recognized university or college in Germany.

The student must have an excellent academic record.

The co-applicant must have a steady income and a good credit history.

The student must have a valid passport and other necessary travel documents.

Interest Rates:

The interest rates for education loans in India vary depending on the lender and the type of loan. Generally, the interest rates for education loans without collateral range from 11% to 14%, while those for loans with collateral range from 8% to 10%. It is essential to compare the interest rates offered by different lenders before applying for an education loan.

Repayment Options:

Education loans typically have a moratorium period during which the student does not have to make any payments towards the loan. The repayment period starts after the completion of the course or after the student begins working. Education loans without collateral typically have a repayment period of up to 10 years, while those with collateral can have a repayment period of up to 15 years or more. Some lenders offer flexible repayment options such as EMI, ECS, and post-dated cheques.

Here are two tables comparing the interest rates offered by different banks for education loans without collateral and education loans with collateral:

Education Loans Without Collateral

Bank Name	Interest Rate (per annum)
SBI	11.20% - 12.45%
Axis Bank	11.00% - 13.75%
HDFC Bank	9.25% - 13.99%
Credila	12.00% - 15.00%

Education Loans With Collateral

Bank Name	Interest Rate (per annum)
SBI	8.45% - 9.60%
Axis Bank	8.35% - 10.75%
HDFC Bank	8.45% - 9.95%
Credila	10.75% - 12.25%

Please note that these interest rates are subject to change and may vary based on the loan amount, repayment tenure, and other factors. It is important for students to check the latest interest rates before applying for an education loan.

Tips for Applying for Education Loans:

Applying for an education loan can be daunting, especially for first-time applicants. Here are some tips to help Indian students apply for education loans for their masters in Germany:

Research and compare the loan options available from different lenders.

Check eligibility criteria and ensure that you meet them before applying.

Prepare a detailed loan application that includes all the necessary documents and information.

Craft a strong statement of purpose that explains why you want to pursue a master's in Germany and how it aligns with your future career goals.

Apply for the loan well in advance to avoid last-minute hassles.

Seek the help of an expert education loan advisor who can guide you through the loan application process and help you choose the best loan option.

Conclusion

In conclusion, pursuing a master's degree in Germany can be an amazing choice for Indian students seeking to expand their academic horizons and gain valuable skills and experience. While funding can be a concern, several options are available, including scholarships, education loans, sponsorships, and part-time work. It is essential for Indian students to plan and budget for their expenses in advance, research and apply for funding options well in advance and seek guidance from study abroad consultants like MS in Germany to make the most of their academic journey. With the proper funding and guidance, Indian students can achieve their dreams of studying in Germany and beyond.

FAQs

1. What is the cost of studying master's in Germany for Indian students?

The cost of studying master's in Germany for Indian students can vary depending on the student's location, lifestyle, and personal choices. However, the average yearly expenses are around 11,208 euros, which includes accommodation, food, transport, and other essential costs.

2. Are there any tuition fees for master's programs in Germany for international students?

Public universities in Germany do not charge any tuition fees for international students. However, private universities may charge tuition fees.

3. What funding options are available for Indian students pursuing master's in Germany?

Several funding options are available for Indian students pursuing master's in Germany, including scholarships, education loans, and sponsorships.

4. How can Indian students apply for scholarships for masters in Germany?

Indian students can apply for scholarships for masters in Germany through various scholarship programs, such as DAAD Scholarships, Friedrich Ebert Stiftung Scholarships, Heinrich Böll Foundation Scholarships, and Konrad-Adenauer-Stiftung Scholarships. Each scholarship program has its eligibility criteria, the application process, and deadlines, so students should research and apply well before their intended start date.

5. What are the eligibility criteria for education loans for masters in Germany?

The eligibility criteria for education loans for masters in Germany can vary depending on the lender. However, some standard eligibility criteria include an excellent academic record, a steady income of the co-applicant, a good credit history, and valid travel documents.

6. What is the repayment period for education loans for masters in Germany?

The repayment period for education loans for masters in Germany can differ depending on the type of loan and the lender. Typically, education loans without collateral have a repayment period of up to 10 years, while those with collateral can have a repayment period of up to 15 years or more.

7. How can Indian students increase their chances of getting an education loan for a master's in Germany?

Indian students can increase their chances of getting an education loan for a master's in Germany by researching and comparing the loan options available from different lenders, checking the eligibility criteria, preparing a detailed loan application, crafting a solid statement of purpose, applying well in advance, and seeking the help of an expert education loan advisor.

Education Loan Options for MS in Germany