Recently, Germany emerged as the second most popular destination for Indian students. In the winter semester of 2019-20, the number of Indian students reached a record figure of 25,149, marking a significant increase of 20.85 per cent from the previous year. German institutions consistently rank among the best globally, ensuring high-quality education. The emphasis on research and innovation provides students with cutting-edge knowledge and opportunities for scientific exploration.
Several factors make Germany a coveted destination for Indian students. The country boasts a world-class education system with prestigious universities offering various programs across disciplines like engineering, management, social studies, mathematics, automation, supply chain management, and more.
Affordability is another advantage of studying in Germany. Unlike other countries, most German universities charge minimal tuition fees for domestic and international students. This accessibility and cost-effectiveness make Germany an attractive choice compared to other study destinations. Moreover, Germany offers a welcoming and inclusive environment for international students, promoting cultural exchange and providing ample employment opportunities.
Current State Of Education Cost In Germany
In Germany, studying costs vary based on factors such as the level of study, university, programme, location, and personal expenses. Tuition fees are generally low, with most undergraduate and master’s programs being tuition-free. However, specialised master’s programs may have tuition fees ranging from €5,000 to €20,000 per year. Living expenses average around €800 to €1,000 per month, covering accommodation, food, transportation, and personal expenses.
Different Modes Of Financing Education In Germany
Germany remains a sought-after destination for ambitious Indian students pursuing international education. Though many turn to part-time employment to overcome financial challenges, education loans (like unsecured and secured) tailored for studying in Germany provide students with much-needed financial support to prioritise their education.
Secured education loans demand an asset as collateral, which can be selected from two categories — tangible assets (like lands, property, shops/stores, etc.) and intangible assets (like insurance, fixed deposits, government bonds, and more). On the other hand, unsecured loans only demand students to disclose a co-applicant and his/her income.
Before finalising the loan, it is essential to understand the basic eligibility criteria.
1. The individual applying should hold Indian citizenship.
2. The student should have gained admission to a German university that is acknowledged by the bank.
3. The student should meet the minimum age requirement of 18 years.
4. In order to repay the loan after completing their studies, the applicant should have secured admission into a program focused on job prospects.
Factors To Consider While Choosing An Education Loan
While seeking a student loan in Germany, a few factors should be considered. Among them are –
1. Verify the processing costs: It’s crucial to double-check the processing costs associated with the loan application. Understanding the processing fees involved will help you plan your finances effectively.
2. Compare income tax exemptions: Take the time to compare different loan options based on the amount of income tax exemptions available. This information can significantly impact your overall financial commitment.
3. Consider the loan margin amount: Before applying for a loan, carefully examine the loan margin amount. Understanding this detail will clarify the additional funds you may need to arrange for your studies.
4. Monitor the loan’s processing time: Keep track of the loan’s processing time, as it varies between lenders. Knowing the timeline will help you plan your application and subsequent steps accordingly.
5. Evaluate the repayment terms: Thoroughly examine the repayment terms offered by different loan providers. Understanding the repayment structure, including interest rates and grace periods, will help you make an informed decision.
6. Opt for a longer loan term: Consider choosing a longer loan term, which allows you to budget for repayments well in advance. This approach can help alleviate financial stress and ensure smoother repayment.
7. Apply in advance: To avoid any last-minute hassles, it’s advisable to submit your loan application at least three months before your scheduled visa interview. This timeframe allows ample time for processing and ensures you have the necessary financial support in place.
By availing of strategic education loans, Indian students can effectively pursue their academic aspirations in Germany while ensuring financial stability. With its top-quality education system, diverse programs, and abundant career opportunities, Germany offers a promising pathway to a successful future for aspiring students.
— Written by Amit Singh, Founder of UniCreds, an extended arm of UniScholars
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