Repayment Timeline for Education Loans After an MS in Germany

How long does it take to repay an education loan after completing an MS in Germany?

The time it takes to repay an education loan after completing an MS in Germany can vary based on several factors, including the loan amount, interest rate, repayment terms set by the lender, and the borrower’s financial situation. Mostly education loans providers offer a grace period after graduation, typically 6 months to 1 year, during which repayments may not be required or only interest payments are required. This allows the borrower time to find employment.

  1. Repayment Tenure: The repayment tenure for education loans can range from 5 to 15 years. Some lenders may offer even longer repayment periods.
  2. Monthly Repayment Amount: The amount you need to repay monthly will depend on the loan amount and the interest rate. Generally, during your course duration you have to pay only simple interest and after the moratorium period is over students have to start their EMI.
  3. Employment and Salary: Your ability to repay the loan quickly will depend significantly on your employment status and salary after completing your MS. Graduates from German universities often find good employment opportunities, which can help in faster repayment.
  4. Extra Payments: Making extra payments towards the principal can significantly reduce the repayment period.

Example -

  • Loan Amount: ₹30 lakhs (approximately €35,000)
  • Interest Rate: 10% per annum
  • Repayment Tenure: 10 years

Using these figures, your monthly EMI (Equated Monthly Installment) would be around ₹39,500. If you make regular payments without any delays, it would take 10 years to repay the loan.

Repaying an education loan after completing your MS in Germany is a manageable process with careful planning and financial discipline. By securing a good job, budgeting effectively, and making extra payments whenever possible, you can significantly reduce your repayment period. Always remember to explore all available options and choose the best repayment strategy that suits your financial situation.

For personalized advice and support in managing your education loan connect with GyanDhan today. We provide comprehensive guidance to help you navigate through the education loan repayment process efficiently.