Blocked account + loan guide for Germany (2026)
Planning to study in Germany in 2026? Learn how blocked accounts work, how education loans fit in, and how to plan both together for your student visa.
Planning to study in Germany in 2026? Alongside admission letters and accommodation, proving you can fund your studies is one of the most important parts of your preparation.
For most international students, this means understanding blocked accounts (Sperrkonto) — and how they can work alongside an education loan.
This guide explains how blocked accounts work, where loans fit in, and how to plan both together for a smoother German student visa process in 2026.
Why Germany requires proof of funds
Germany is known for high-quality education with relatively low tuition fees, especially at public universities. To ensure students can support themselves, German authorities require proof of sufficient financial resources when applying for a student visa or residence permit.
This proof usually covers one year of living expenses and is most commonly demonstrated through a blocked account.
What is a blocked account?
A blocked account is a special German bank account where a fixed amount of money is deposited before you arrive in Germany. Once you’re there, the funds are released to you in monthly instalments.
Key features include:
funds are locked before arrival,
a fixed monthly withdrawal limit,
used primarily as visa proof, and
designed to cover living costs such as rent, food, and insurance.
The required blocked amount is set by German authorities and can change, so always check official sources when planning.
Who needs a blocked account in 2026?
You will usually need a blocked account if you:
are a non-EU/EEA student,
are applying for a German student visa, and
do not have a recognised scholarship covering living costs.
Some students may be exempt if they have a full scholarship or a recognised financial guarantee, but for many international students, a blocked account remains the most straightforward option.
What expenses does a blocked account cover?
A blocked account is designed to support basic living costs, not tuition.
Typically covered
rent and utilities,
food and groceries,
local transport,
health insurance premiums, and
day-to-day personal expenses.
Typically not covered
tuition fees (if applicable),
semester contributions,
travel to Germany, and
large one-off expenses.
This gap is where education loans often play a role.
Can you use an education loan for Germany?
Yes. Many students combine a blocked account for living expenses with an education loan for tuition and other costs.
An international education loan can help cover:
tuition fees (especially at private universities),
costs beyond the blocked account amount,
health insurance or relocation expenses, and
academic materials or equipment.
Used together, blocked accounts and loans create a more complete funding plan.
How Prodigy Finance fits into your Germany funding plan
Prodigy Finance supports international postgraduate students studying at selected German universities and business schools.
Prodigy Finance is an international lender, and applicants from 120+ countries are eligible to apply for funding at supported universities worldwide. While this guide focuses on Germany, funding availability depends on the university, programme, and individual eligibility, and support is not limited to Germany alone.
Key points to understand:
loans are assessed based on your academic profile and future earning potential,
no collateral is required for the main product,
funds are sent when we send the funds to your school, in line with university billing, and
repayments begin after your grace period (regular).
This structure can work well alongside a blocked account, which remains focused on monthly living expenses.
Blocked account vs education loan: what’s the difference?
Aspect | Blocked account | Education loan |
|---|---|---|
Purpose | Visa proof + living costs | Tuition + broader expenses |
Access to funds | Monthly limit | As per disbursement schedule |
Flexibility | Low | Higher |
Used for visa | Yes | Often yes |
They serve different roles and are usually complementary rather than competing.
Step-by-step: planning your blocked account + loan for Germany 2026
1. Confirm your university and programme
German visa authorities expect consistency across:
your admission letter,
cost estimates, and
funding documents.
Start planning once your programme and intake are confirmed.
2. Estimate your full cost of attendance
Create a simple budget covering:
tuition fees (if applicable),
the official blocked account requirement,
semester contributions, and
insurance and relocation costs.
This helps you decide how much funding comes from savings versus a loan.
3. Open your blocked account early
Blocked account setup can take time due to:
international transfers,
verification checks, and
embassy appointment schedules.
Opening it early reduces last-minute pressure.
4. Apply for your education loan in parallel
You don’t need to wait for your blocked account to be finalised before exploring loans.
Early loan checks help you:
confirm support for your German university,
align approval letters with visa timelines, and
plan tuition payments with confidence.
5. Prepare visa-ready documents
You will typically need:
proof of blocked account funds,
a loan approval or sanction letter,
your admission letter, and
health insurance confirmation.
Make sure names, amounts, and dates match across all documents.
Common mistakes to avoid
assuming the blocked account covers tuition,
opening a blocked account too late,
underestimating relocation and setup costs, or
not aligning loan disbursement with fee deadlines.
A combined funding plan helps avoid these issues.
After arrival in Germany: what happens next?
Once you arrive:
your blocked account releases funds monthly,
your residence permit may be extended based on updated proof of funds, and
tuition payments are handled separately through your loan or savings.
Keep financial documents accessible for registration and renewals.
Final thoughts: plan both, not one or the other
For most international students heading to Germany in 2026, a blocked account alone may not be enough — and a loan alone may not meet visa rules.
Used together, they form a practical and compliant funding strategy. Planning early gives you time to compare options, prepare documents, and move forward with confidence.
