Erasmus+ loans are part of the Erasmus programme, which funds international study and student mobility across Europe. Whereas other Erasmus funding supports short international placements or specific Joint Masters Degrees, loans are more flexible.
Eligible students can take out an Erasmus+ Loan to study any existing Masters in a participating country.
Who provides the loans?
Unlike other postgraduate loans, the Erasmus+ Loans are not offered by governments. Instead they are provided by banks in individual countries.
The banks agree to offer loans to students on favourable terms. In return, the Erasmus programme partially guarantees the loans.
This system allows the same loans to be offered across a range of countries on the same terms. However, it relies on individual banks agreeing to participate. As a result, loans are not yet available in all Erasmus Programme Countries.
Erasmus+ Masters Loans are currently offered by banks and other organisations in Spain, Italy (Emilia Romagne region), Turkey, Croatia, Romania, Luxembourg and Cyprus. Other countries will join the scheme as their lenders agree to participate.
How much are the loans worth?
An Erasmus+ Masters Loan will allow you to borrow up to €12,000 for a one-year course or €18,000 for a two-year course. You do not have to borrow the full amount in either case.
This money is intended to cover tuition fees and other expenses (such as travel, living and accommodation costs). You will have to fund any further costs yourself.
How do interest rates and repayments work?
Interest rates and repayment terms are set by individual banks, subject to conditions laid out by the Erasmus programme.
These include a one-year grace period before repayments are due and an optional one-year repayment holiday at any point after graduation. Interest must also be set at a below-market rate, ensuring that the Erasmus Loans are a better option than conventional personal loans.
Who offers Erasmus+ Masters Loans?
In Spain, loans are available from Microbank for incoming and outgoing students studying a Masters abroad.
The following organisations will only offer loans to outgoing students studying a Masters abroad:
In addition, loans will be available from the University of Luxembourg and the University of Cyprus for incoming students to defer fees and accommodation costs for up to two years.