Many students choose to apply for a study abroad loan to pay for their tuition and living expenses after studying abroad. Next we will give you an introduction to the types of German student loans and application methods, welcome to read the reference.
Types of loans for studying in Germany
1. Margin loans
Margin loans for studying in Germany refers to the fact that the applicant can't satisfy the requirements of the German Embassy for a margin of deposit, and doesn't have enough money to exist in a bank account, so the applicant borrows money from a bank that issues a certificate of deposit to meet the requirements. Meet the requirements of the deposit certificate, generally speaking, the deposit needs to be deposited in the bank for more than six months.
Does the margin loan provide guarantee to other loans? According to the Bank of China, the margin loan for studying abroad does not have any other restrictions, no guarantee is required, as long as the full amount of the loan interest can be deposited in advance, generally seven working days can be done.
The difference between margin loans and other loans is that they do not give the applicant cash, but simply issue a certificate of deposit for the applicant, proving that the applicant has a full margin to meet the requirements of the German Embassy, and is fully capable of completing his studies in Germany.
For margin loans, for example, assuming that the German Embassy requires a 200,000 yuan margin, and the international student has a 10,000 yuan or more, the deposit period of more than 6 months of the Bank of China, the Bank of China will find the relevant guarantee agency for your guarantee, for you to issue a 200,000 yuan full deposit certificate, the interest rate of the loan according to the national benchmark interest rate of the same period of time by a small adjustment of 5%, the loan period due to the applicant's actual situation. The actual situation of the applicant will depend on the loan period.
2. Study loans
Another kind of loan for studying in Germany is the study loan, this kind of loan is in the case of the applicant through the student visa, determined to study, because the applicant's funds are insufficient and the loan occurs. For this kind of loan, the country of study generally requires a guarantee, which is different from the margin loan.
There are generally two types of guarantees for study abroad loans, namely, a mortgage on real estate and a pledge. The guarantor of the real estate mortgage must be the applicant himself or the applicant's parents, other guarantors are not recognized, and the guarantor enjoys full property rights to the mortgaged property, and the property that is not mortgaged can not be used as collateral. The real estate mortgage has to be evaluated on the property, which usually takes 20 to 30 working days and is rather cumbersome. The pledge loan refers to the pledge of the applicant himself or his parents with a full amount of bank deposits.
Tips for applying for a loan to study in Germany
1. Diversified financial services to promote the loan service
Nowadays, the foreign financial services of various banks have long exceeded the simple purchase of foreign currency and overseas remittance business, a variety of "one-stop "The first thing you need to do is to get your hands on some of the most popular products and services in the world.
It is worth noting that different banks have introduced special services that are very eye-catching. For example, ICBC's global fast foreign exchange business; Bank of China, CITIC Bank and other banks to provide loans for students; Everbright Bank, China Merchants Bank and Bank of China and other banks to provide overseas account pre-opening business; Bank of China's overseas account opening, foreign exchange student loan business; CITIC Bank's embassy visa agent business, on behalf of the sale of the visa reservation telephone code card business to the United States, and so on. The highlighting of the advantages of special financial services among banks has made the competition for the study abroad financial market increasingly fierce, and the diversified financial services industry has effectively promoted the continuous improvement of loan services.
2. Apply for a study abroad loan as early as possible
When the direction of study abroad is determined, it is necessary to begin to consider the financial preparation of the child to study abroad. Many families are now choosing to take out student loans to reduce the financial pressure on their families.
Study loans can be secured by real estate, treasury bills, certificates of deposit, etc., the general implementation of the national benchmark interest rate, 3-year period, the loan amount according to the borrower's overseas tuition fees plus living expenses for the estimate, the loan amount is generally not more than the borrower in the overseas study period of all tuition fees and living expenses 80%, but also according to the borrower's situation and the provision of credit collateral situation, the appropriate floating to the total amount of all the costs of the 90%. The specific loan period, loan ratio and loan amount should be determined according to the borrower's study expenses and guarantee situation.
General foreign institutions require funds deposited in the bank for a period of time as a deposit, and the bank issued a relevant certificate, so the earlier the study loan the better, generally 6 months in advance for the processing, the success of the processing time of about a week. The first thing you need to do is to get your hands dirty.
3. Loan notes need to be kept in mind
Industry insiders reminded, do study abroad loan, there must be clear instructions loan is used to study. In addition, many banks currently provide study abroad loan services, but not all banks can provide study abroad loan contract in English. This is also something that customers need to be aware of when going through the study abroad loan process. If there is no English version, there may be a little trouble when it comes to visa. At the same time, we should try to pay attention to our own integrity when doing a study abroad loan, and try to avoid using the leveraged route to do the loan. After all, the fundamental purpose of the customer to come over to do the student loan is to go abroad, honesty is still the first place.
Rules for repayment of study abroad loans in Germany
(1) Bank of China
The Bank of China's foreign exchange loans for study abroad are generally for a period of 1 to 6 years, and the maximum amount of the loan is not more than the amount of all the tuition fees and living expenses of 80% of the borrower's period of study outside the country. These loans are divided into RMB loans for expatriates and foreign currency loans for study abroad, and the specific loan period, loan ratio and loan amount are determined by the bank according to the borrower's study expenses and guarantee situation.
Characteristics of Bank of China's study abroad loan products: Can be used for overseas study and living expenses of students who have been approved to study undergraduate, master's and doctoral degrees outside China; Provide RMB loans and foreign exchange loans in five currencies: US dollars, pounds sterling, Japanese yen, euros, and Hong Kong dollars, etc., which can be chosen by the borrowers according to their actual needs, so that their overseas tuition fees and living expenses are easily taken care of; Can be chosen from a mortgage, pledge guarantee, and third-party guarantee. Borrowers can choose from a wide range of security options, including mortgage, pledge and third-party guarantee. Fast and convenient repayment channels: you can choose to remit the loan in person abroad, through online banking or entrust others to repay the loan in China on your behalf. The lender can give the borrower a certain grace period, during which only the interest is paid but not the principal, making the utilization of funds more flexible.
(2) Agricultural Bank of China
Agricultural Bank of China Study Abroad Loan issuance method: the applicant should bring his valid identification, deposit slip, passbook, bank card, treasury bonds vouchers, to any Agricultural Bank of China for the business outlets, fill out the "Agricultural Bank of China Certificate of Deposit Application Form ". If you are unable to come in person for any reason, you can also authorize another person to handle this business on your behalf. In addition to carrying the documents specified above, the agent should also hold the authorization letter of the authorized person and the agent's own valid identification.
Effective date: The date of the bank's issuance of the certificate of deposit is the date of the customer's application for this service. The deadline for stopping the payment of the deposits involved in the application for the issuance of a certificate of deposit is determined by the applicant and indicated by the applicant in the application form, and the deadline for the issuance of the certificate is the date if the date is filled in as the same day.
(3) CITIC Bank
Borrowers applying for study abroad loans should have the following conditions at the same time: a legal identity document, a local permanent household registration or a valid residence document; the borrower or his/her family members have a stable occupation, a reliable income, and the ability to pay back the principal and interest of the loan on schedule, or on behalf of the loan on schedule; the borrower or the object of his/her financial support has a written proof of studying abroad; assets recognized by the Bank as collateral or pledge; and other conditions stipulated by the Bank.
Loan repayment methods are determined according to the loan term and guarantee methods, which can be as follows: A. Pledge method. For loans with a term of less than one year (including one year), one-time repayment of principal and interest at maturity, with interest following the principal; for loans with a term of more than one year, monthly or quarterly repayment of principal and interest. Unless the head office has special regulations for certain countries that allow quarterly repayment of principal and interest, monthly repayment of principal and interest is always applied. b. Housing mortgage. The company's main goal is to provide the best quality of service to its customers.
Extended reading: what is the attraction of studying in Germany?
First, learning is free
Only for students studying in public institutions, the government will be responsible for school teaching expenses, is completely welfare teaching, international students studying here is not required to pay fees, so you can save half of the expenses of studying abroad, after all, the private university fees are normal.
However, you still need to pay a registration fee, you need to confirm their student status, the registration fee will include a semester ticket for travel during the academic year, you can enjoy the benefits of free travel, it is very cost-effective.
2. Free medical care
Schools will require students to purchase medical insurance, you can confirm in the relevant departments of the school to buy their own items, after confirming the monthly payment on time, so that you can enjoy the national health benefits, reduce the expenditure of the sick.
It is recommended that you choose a larger insurance company, the public will be more secure, such as AOK, TK, DAK, the cost of a month department needs to be 300-600 yuan, you can basically free of charge to see the doctor to buy drugs, can be a high percentage of reimbursement.
Three, transportation is free
Whether the students are enrolled in the school is public or private, you need to pay a student status registration fee, this fee is in addition to proof of enrollment, but also will be issued to the students travel to a certain area within the transportation card, that is, you do not need to spend money on public **** travel.
You need to pay the fee and go to the relevant departments for the semester ticket, and the bus card is almost the same, basically to ensure that everyone in the area where the school is free travel, which is the exclusive benefits of the students, you must apply for their own to be able to enjoy.
Fourth, part-time work tax exemption
In Germany, the study, international students can carry out part-time work, and work on the need to pay taxes, students as a special group, need to complete the process of paying taxes, but every year can be unified for the tax rebate, you only need to show a qualified and complete proof can be.
So you must apply for my tax card, and job search through formal channels, into the formal work need to sign a contract, and then in the designated time, take the materials to the relevant departments to submit an application for tax rebates, of course, only to reach the amount of tax paid tax will have tax can be refunded.