This is one of the most common points of confusion for students applying to German universities. "Do I need a blocked account or an education loan?" The answer is that these are not alternatives to choose between — they serve entirely different purposes, and for many students, both are part of the solution.
What Is a German Blocked Account (Sperrkonto)?
A blocked account (Sperrkonto) is a special German bank account that holds a lump sum of money. The funds are "blocked" — meaning they are released only in fixed monthly instalments after you arrive in Germany, not all at once.
The German government requires international students to deposit a minimum amount into a blocked account before their visa can be issued. This deposit proves to the German embassy that you can financially support yourself during your studies without needing to rely on full-time employment.
| Blocked Account Feature | Details (2026) |
|---|---|
| Required deposit | €11,208 |
| Monthly release | €934/month |
| Accepted providers | Fintiba, Coracle, Expatrio, Deutsche Bank |
| One-time setup fee | €49–€89 |
| Purpose | Visa proof of financial sufficiency |
| Is it a loan? | No — it's your own money (or loan funds) held in trust |
| Is it repaid? | No — you withdraw your own money monthly after arrival |
What Is an Education Loan?
An education loan is a financial product from a lender — a bank, fintech, or funding partner — that lends you money to finance your studies. You borrow funds, then repay them with interest over a defined period after graduation.
An education loan can be used for:
- Depositing money into your blocked account (to meet the visa requirement)
- Paying tuition fees (if applicable — e.g. Baden-Württemberg or private universities)
- Covering living costs above what the blocked account releases monthly
- Accommodation deposits, flights, and pre-departure expenses
The Relationship Between the Two: A Simple Model
| Blocked Account (Sperrkonto) | Education Loan | |
|---|---|---|
| What it is | A German bank account | A financial product from a lender |
| Purpose | Visa proof of funds | Source of funds |
| Mandatory? | Yes — for student visa | No — only if you need funding |
| Where money comes from | Family savings, loan proceeds, or existing savings | Lender — repaid post-graduation |
| Repaid? | No (it's your own money) | Yes — over agreed tenure with interest |
| Can one fund the other? | Loan funds can be deposited into blocked account | Loan disburses to blocked account |
How the Loan-to-Blocked-Account Flow Works
Apply for a loan via GlobCred
Get matched with a lender from GlobCred's network — free, takes under 5 minutes.
Lender approves loan
Lender verifies your admission letter, academic record, and financial profile. Approval takes 2–4 weeks.
Loan disbursed to blocked account
Lender disburses €11,208 directly to your Fintiba, Coracle, or Expatrio blocked account.
Blocked account confirmation
Provider issues confirmation certificate accepted by German embassies in Lagos, Nairobi, Manila, Kathmandu, or New Delhi.
Visa approved, you travel
With blocked account confirmed, your German student visa application is filed and approved. You travel to Germany.
Monthly releases begin
€934/month is released to your regular German bank account. Loan repayment begins post-graduation as agreed.
Loan processing and blocked account setup take 3–6 weeks combined. Begin your loan application at least 8 weeks before your visa appointment to ensure funds are in place. GlobCred's advisors can guide you on exact timelines for your embassy location.
What If You Already Have Savings for the Blocked Account?
If you or your family can fund the €11,208 blocked account from savings, you may not need a loan for the visa requirement itself. However, you may still want a loan to cover:
- Living costs in months when the €934/month release doesn't fully cover expenses (especially Munich)
- Tuition fees if studying in Baden-Württemberg
- Return flights, accommodation deposit, winter clothing, and setup costs before the blocked account begins releasing
- Emergency buffer during the first months of study
Some students believe a loan approval letter alone satisfies the German visa proof-of-funds requirement. It does not. The German embassy requires an active blocked account with funds deposited — not just a loan offer. The loan must be disbursed into the blocked account before the visa application is filed.
Approved Blocked Account Providers in 2026
| Provider | Setup Fee | Monthly Fee | Account Opening Time | Embassy Accepted |
|---|---|---|---|---|
| Fintiba | €49 | €4.90 | 2–5 business days | Yes |
| Coracle | €59 | €0 | 1–3 business days | Yes |
| Expatrio | €69 | €0 | 2–4 business days | Yes |
| Deutsche Bank | €0–€30 | €0 | 2–4 weeks (slower) | Yes |