Germany is a top choice for international students because of its tuition-free public universities and excellent education system. However, students still need to cover living expenses, accommodation, and other costs. This is where student loans in Germany come in handy.
In this guide, we’ll explore different loan options, eligibility requirements, and how international students can secure financial assistance.
Can International Students Get a Loan in Germany?
Yes, international students can access education loans to study in Germany. Germany does not have a single federal student loan system like the U.S. Instead, there are several categories of funding available:
1. Germany-based loans: Government-backed programs like the KfW Studienkredit and Bildungskredit, as well as private bank loans from institutions like Deutsche Bank and Sparkasse. Eligibility varies. Some are open to non-EU students, while others require EU citizenship, long-term residency, or a German cosigner.
2. Home-country education loans: Banks in countries like India, the UK, and others offer study-abroad loans that can be used for tuition, living costs, and even your German Blocked Account.
3. International lenders: Companies like Prodigy Finance offer loans specifically for international postgraduate students, often without requiring collateral or a cosigner.
These loans can help cover tuition fees (if applicable), living costs, accommodation, and Health Insurance. Students should also look into scholarships, grants, and part-time work to reduce the total amount they need to borrow.
Which Loans Require No Collateral or Cosigner?
One of the biggest concerns for international students is whether they need collateral or a cosigner to get a loan. Here is a quick overview.
Loans that do NOT require collateral or a cosigner:
Loans that DO require collateral or a cosigner:
If you are a non-EU student arriving in Germany for the first time without a German guarantor, your most realistic options are Prodigy Finance (for postgraduates at supported universities) or an education loan from a bank in your home country.
Student Loans in Germany for International Students
1. Loans Available in Germany
Many banks and financial institutions in Germany offer loans for students. However, most Germany-based loan programs have specific eligibility requirements related to residency, citizenship, or having a German cosigner. Here are the main options:
1.1 KfW Studienkredit (KfW Student Loan)
The KfW Studienkredit is one of the most well-known student loan programs in Germany. It is offered by KfW, the German government's development bank. No collateral or cosigner is required, but eligibility is limited for non-EU international students.
- Eligibility: German citizens, EU citizens who have lived in Germany for at least three years (and their family members), and "Bildungsinlander" (non-German students who obtained their university entrance qualification in Germany or at a German school abroad). Students must be under 44 years of age and enrolled at a state or state-recognized German university. Most international students arriving in Germany for the first time will not qualify.
- Loan amount: €100 to €650 per month, for up to 14 semesters. Maximum total: approximately €54,600.
- Interest rate: Variable, currently around 6.36% per annum (adjusted every six months based on the EURIBOR rate).
- Repayment: Begins 6 to 23 months after the last disbursement. Maximum repayment period is 25 years.
Learn more on the KfW Studienkredit page.
1.2 KfW Bildungskredit (Education Loan)
The Bildungskredit is a separate, smaller loan program also administered by KfW on behalf of the German federal government. It is designed for students in advanced phases of their studies and can be combined with BAfoG. International students can access it if they meet the BAföG eligibility criteria (§8 BAföG).
- Eligibility: Students in advanced study phases (after an intermediate exam or equivalent progress). International students qualify if they meet BAföG residency criteria, such as being married to a German citizen, having a parent who is a German or EU citizen with permanent residency, or holding a Niederlassungserlaubnis (permanent residence permit).
- Loan amount: €100, €200, or €300 per month, plus an optional one-time payment of €3,600. Maximum total: €7,200 over 24 months.
- Interest rate: 3.10% effective annual interest (as of October 2025).
- Repayment: Begins four years after the first disbursement. Minimum monthly repayment is €120. The loan can be repaid early at any time without fees.
Learn more on the KfW Bildungskredit page.
1.3 Deutsche Bank Student Loan
Deutsche Bank has offered loans for international students in Germany, though specific product details are not prominently listed on their website. If you already have a Blocked Account with Deutsche Bank, it may be worth contacting them directly to ask about student loan options.
- Eligibility: Typically requires a German cosigner. Having a Blocked Account at Deutsche Bank may be relevant.
- Loan amount: Depends on the applicant's financial profile.
- Interest rate: Varies based on creditworthiness.
- Repayment: Begins after course completion with fixed monthly payments.
Since details can change, contact Deutsche Bank directly for the latest terms.
1.4 Sparkasse and Commerzbank Loans
Private banks like Sparkasse and Commerzbank offer personal loans that students can use for study-related costs. However, their eligibility requirements tend to be stricter than government-backed options.
- Eligibility: Typically requires a German resident guarantor or established financial history in Germany.
- Loan amount: Varies depending on bank policy and borrower profile.
- Interest rate: Generally higher than government-backed loans.
- Repayment: Starts soon after graduation, with repayment periods between 5 to 10 years.
Check student loan details at Sparkasse and Commerzbank.
1.5 BAfoG (Federal Student Aid Program)
BAfoG is Germany's main student financial aid program, combining a grant (50%) with a zero-interest loan (50%). It is primarily designed for German students, but certain international students can qualify based on their residency status and personal circumstances.
- Eligibility: International students may qualify if they are married to a German citizen, if at least one parent is a German or EU citizen with permanent residency rights, if they hold a Niederlassungserlaubnis (permanent residence permit), or if they are recognized as a refugee or have certain other protected statuses. The commonly cited "five years of residence" is one pathway but not the only one.
- Loan amount: Up to €992 per month (2025/2026 rate).
- Interest rate: 50% is a grant (non-repayable). The remaining 50% is a zero-interest loan.
- Repayment: Begins five years after the maximum funding period ends, with small fixed monthly payments.
Find out how BAfoG supports international students. For a deeper look at BAfoG, read our full guide to BAfoG and student loans in Germany.
1.6 Daka Student Loans (NRW)
The Darlehenskasse der Studierendenwerke (Daka) is a non-profit organization run by the 12 student unions in North Rhine-Westphalia (NRW). It offers interest-free loans to students enrolled at universities in NRW who are facing financial difficulties.
- Eligibility: Must be enrolled at a university in NRW. A guarantor with residence in Germany is required (non-EU citizens need a guarantor with a permanent residence permit). Age and semester count do not matter.
- Loan amount: Up to €12,000 total, disbursed in monthly installments of up to €1,000. An additional €6,000 can be granted for a study-related stay abroad.
- Interest rate: Interest-free. A one-time administrative fee of 5% of the loan amount is charged.
- Repayment: Begins 12 months after the last installment. Can be deferred further if you are still studying.
Learn more at daka-darlehen.de.
1.7 Other Student Union Emergency Loans
Beyond Daka, many individual universities and student unions across Germany provide small emergency loans to enrolled students facing short-term financial difficulties. These loans are typically small (€500 to €5,000), low-interest or interest-free, and available only to currently enrolled students.
Contact your university's Studierendenwerk directly to ask about available emergency funding.
➡️ You can explore more funding options in our financial aid and scholarships resource.
2. Using a Student Loan to Fund Your Blocked Account
Most international students need a Blocked Account as part of their German student visa application. The Blocked Account proves you have enough funds to cover your living expenses in Germany (currently €11,904 per year).
If you are taking out a student loan to study in Germany, you may be able to use those loan funds to open and fund your Blocked Account. Here is how it works:
2.1. Prodigy Finance: If your Prodigy Finance loan includes living expenses, the funds can be disbursed directly into your Expatrio Blocked Account. After your visa is approved and you arrive in Germany, the money is released in monthly installments. This means your loan approval can serve as proof of financial resources for your visa application.
2.2. Home-country education loans: If you receive a loan from a bank in your home country (for example, ICICI Bank or SBI in India), you can typically transfer the funds into your Blocked Account yourself after the loan is disbursed.
Important: A Blocked Account covers living expenses only, not tuition. If you attend a private university with tuition fees, you will need to arrange separate funding for tuition. Many students combine a Blocked Account for living costs with a loan for tuition and other expenses.
➡️ Open your Expatrio Blocked Account here
3. Student Loans for Indian Students Studying in Germany
Indian students studying in Germany can apply for education loans from Indian banks. These loans cover tuition fees, living costs, travel expenses, study materials, and accommodation. The loan funds can also be used to set up your German Blocked Account.
3.1 ICICI Bank Education Loan
One of the most popular education loans in India for studying abroad.
- Eligibility: Indian students with confirmed admission to a recognized German university.
- Loan amount: Up to ₹1 crore (with collateral), up to ₹40 lakh without collateral.
- Interest rate: 9.5% to 12.5% per annum.
- Repayment: Starts after course completion, with flexible repayment for 10 to 15 years.
Learn about ICICI Bank education loans for Germany.
3.2 State Bank of India (SBI) Education Loan
SBI's Global Ed-Vantage scheme supports Indian students pursuing degrees at approved universities abroad, including in Germany.
- Eligibility: Admission to a recognized German university.
- Loan amount: Up to ₹1.5 crore (with collateral).
- Interest rate: Starts at 9.5% per annum.
- Repayment: Begins one year after course completion.
Explore SBI Education Loan options.
3.3 HDFC Credila Education Loan
HDFC Credila specializes in education loans for studying abroad. The interest rate is based on several factors, including the applicant's academic background, the university's ranking, future earning potential, and the cosigner's credit score.
- Eligibility: Students with co-applicants in India who have a strong financial history.
- Loan amount: Up to ₹50 lakh (with collateral).
- Interest rate: 9% to 13% per annum.
- Repayment: EMI starts after a moratorium period.
Check HDFC Credila Education Loan options.
➡️ For more Indian bank loan options, visit our dedicated education loans for Indian students page.
In addition to education loans, Indian students can explore various scholarships in Germany, including DAAD scholarships and other government-funded programs.
4. Loans Offered by International Institutions for Students Studying in Germany
If you do not qualify for a loan from a German bank or a home-country lender, international lending platforms may be an option. These lenders are designed specifically for students studying outside their home countries.
4.1 Prodigy Finance
Prodigy Finance is one of the most accessible loan options for international postgraduate students in Germany. It does not require a cosigner, guarantor, or collateral. Prodigy Finance can also disburse loan funds directly into your Expatrio Blocked Account, which simplifies the visa application process.
- Eligibility: Postgraduate students at selected universities. Applicants from 120+ countries are eligible.
- Loan amount: Covers tuition and living expenses, up to €100,000.
- Interest rate: Variable, typically 7% to 12% per annum. The rate is personalized based on your university, program, and future earning potential.
- Repayment: Begins six months after graduation, with repayment terms of 7 to 15 years.
- Blocked Account: If your loan includes living expenses, Prodigy Finance disburses those funds directly to your Expatrio Blocked Account.
Read more about Prodigy Finance loans.
4.2 International Student Loan Program (ISLP)
ISLP connects international students with lenders that fund education at universities outside their home countries. Loan terms vary depending on the partner lender matched to your profile.
- Eligibility: Must be an enrolled student at an approved university. A cosigner may be required depending on the lender.
- Loan amount: Varies based on course duration and financial need.
- Interest rate: Depends on credit profile and cosigner (if applicable).
- Repayment: Options include interest-only payments while studying or deferred repayment.
Find more details about the ISLP Loan Program.
Step-by-Step Guide: How to Apply for a Student Loan in Germany
Applying for a student loan in Germany involves several key steps. Follow this process to ensure a smooth application:
- Research loan options - Compare different loan providers, including Germany-based programs, home-country banks, and international lenders. Use the comparison tables above to narrow down which loans you are actually eligible for.
- Check eligibility - Review the eligibility criteria for each loan carefully. Pay attention to nationality requirements, residency conditions, cosigner needs, and whether the loan covers tuition, living costs, or both.
- Gather required documents - Prepare essential paperwork such as your admission letter, passport, visa, financial statements, and proof of enrollment. Some lenders also require academic transcripts and a study plan.
- Submit the application - Apply online or visit a bank branch, depending on the lender's process. For international lenders like Prodigy Finance, the entire process is online.
- Loan approval and disbursement - Once approved, the loan amount is transferred directly to your university, your Blocked Account, or your personal account, depending on the lender. If you need a Blocked Account for your visa application, check whether your lender can disburse funds directly into it.
- Understand your repayment terms - Before signing the loan agreement, make sure you understand your repayment terms, grace periods, and how interest accumulates over time.
Alternative Funding Options for Students in Germany
Not all students want to take out loans due to concerns about debt and repayment. There are several other ways to finance your studies in Germany.
Scholarships and Grants
Germany offers a variety of scholarships to international students, many of which are merit-based, need-based, or field-specific. Unlike loans, scholarships do not need to be repaid. Some key options include the DAAD (Deutscher Akademischer Austauschdienst), the Deutschlandstipendium (a merit-based scholarship funded by the German government and private sponsors), and university-specific financial aid programs.
Part-Time Jobs for Students
International students in Germany are allowed to work part-time to support their living expenses. Common student jobs include student assistant (HiWi) positions in research departments or university offices, retail and hospitality jobs, and paid internships. Students can work up to 120 full days or 240 half days per year without requiring a special work permit.
Company Sponsorships
Some companies in Germany fund students in exchange for a work contract after graduation. These arrangements are more common in STEM fields and for students in advanced study phases. Check with your university's career services office for available programs.
Crowdfunding and Community Support
Some students raise money through crowdfunding platforms like GoFundMe or education-specific platforms like FundMyDegree. Additionally, religious and cultural organizations sometimes financially support students pursuing higher education abroad.
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