Educational Loan Options for Germany | GyanDhan

Germany has become a favoured study destination for international students in recent years. In fact, Germany reached its goal of welcoming 3,50,000 international students by 2020 in the year 2017 itself. Some of the reasons why German universities witnessed a rapid rise in the number of international students are the excellent quality of education and research environment that they provide, free or on very low tuition fees, world-class professors, and the number of job opportunities after education. Indian students too are not far behind in choosing Germany for their higher education and are the third-largest group of international students in the country. The year 2018 saw 17,570 Indian students enroll in German Universities. Out of these, a whopping 80% chose to study Master’s in Germany.

This is a companion discussion topic for the original entry at

In Germany, student housing is not provided by college instead it is provided by studentenwerk(Student union) or private housing, expenditure for which is dealt by the student. This amount is not transferred to university instead they have to be stored in a blocked account. For this scenario the SBI agent at my nearest branch is saying that since the amount is not transferrable directly to the university, hence it is not applicable for loan. In germany only semester fee is transferrable to university which is quite minimal but the main cost incurred is for food, accommodation, utilities etc. which are not handled at the university end and student has to look out for these on their own. Is there any way a student can apply for SBI or any other bank’s education loan (any amount but without collateral) for this scenario where amount is provided to the student(or directly transferred to the blocked account) and not to the college.

Hi @Hemant01

Yes, you can apply for a loan for the blocked account. However, if you wish to apply from a public bank like SBI, collateral is mandatory on loan amounts above INR 7.5 lakhs. You can apply for an unsecured loan (loan without collateral) from a private bank or an NBFC.
There are many lenders that provide funds as student loans for the blocked account, one of which is SBI. Though, some branch managers are either unaware or hesitate to process such a request.

Refer to this blog for help -

Rest, I’d advise checking your loan eligibility on our website - GyanDhan > Loans > Check Loan Eligibility. The tool will match you with a lender that suits your profile. Moreover, our executive will get in touch with you and explain the entire loan process, lenders available to you, and the best option amongst them. They will also assist you throughout the loan process. Any issue that you may face during the process will be swiftly resolved by them. We have tied up with several lenders (public banks, private banks, NBFCs, and international lenders).
Our services are free of cost.

I hope this helps you. All the best!