Step 4

Preparing your Finances

Now that you are well underway with your application and have pretty much made a decision that Germany is your ultimate destination, it’s time to set up your finances. This is a very crucial aspect of your application and will determine whether or not you can get a visa and ultimately a residence permit (if you need to). So, let’s get started.

Options for proving financial ability

To create a blocked account, you will be required to deposit a whole year's estimate of your student budget.

For students applying before January 2020, the amount you have to deposit is 8640 euros. This is about 720 euros per month.
In case you make you application from January 2020, you will have to deposit 10,236 euros. This is about 853 euros per month.

Find out more about setting up your blocked account on our dedicated page right here.

A Verpflichtungserklärung is an official document of undertaking issued by the Kreisverwaltungsreferat (KVR) a government office. It states that a third-party, for instance a relative or partner who has permanent residence in Germany will cater for your study and living costs upon your arrival in Germany.

To obtain one, the person should to go to the KVR and have the formal undertaking issued. They will need to submit proof of income to show they can actually support you once you arrive. 

This is also a popular option. In case you have a scholarship, you will need the original letter from your sponsor. The letter should show the full extent which the scholarship covers

Optimally, it should sufficiently fund your study and living costs up to the required livable amount. Starting January 2020, this amount has been raised from 720 euros per month to 853 euros per month. In case they give you other benefits, such as housing and transport, this should be clearly stipulated.

This option is valid for only a few countries. Kindly confirm with your embassy beforehand.

Students are allowed to submit details of their family income such as the income of a parent or a relative. To confirm whether this is a permitted criteria for you, check with your local German embassy or consulate.

Your parent or relative will typically have to submit their employment contract, their payslip from at least the past three months and their bank statements. They may also be required to write a letter of commitment saying that they commit to paying for your studies in Germany.

Another alternative would be to get a guarantee by an institution such as a bank or an organization. This guarantee can be in the form of a repayable loan or a grant. Some organizations give grants to promising students in exchange for employment upon graduation so if this is the case, you may submit this as proof of financial ability. It should guarantee to pay for your study and living costs for the duration of your study.

Do you Need to prove financial ability?

When it comes to proving financial ability, there are three categories in which applicants fall:
1. Those who need proof of finances when applying for a visa and a Residence Permit.
2. Those who need proof only when applying for a residence permit after arriving in Germany.
3. Those who do not need any proof whatsoever. 
Check the table below to see where you fall.

Nationality Required when applying for a VISA? Required when applying for a Residence Permit?

Citizens of
Australia, Canada, Israel, Japan, New Zealand, South Korea
and the United States

  • No Proof of Finances required

  • No visa required
  • Yes

    Citizens of other
    Non-EU countries that are not mentioned above

    Yes

    Yes

    EU Citizens

    No Visa Required

    No Residence Permit Required