What are my chances of getting the DAAD scholarship if I don’t have excellent knowledge of German language?

It depends on what you want to study and where. There are a lot of programs offered in English, especially in larger cities. My studies are in English and most of my international colleagues came to study here without any previous knowledge of German. Professors at chemistry department give lectures in English even if there is just one foreign student in the room. However, German language courses are compulsory for us and they are also fully financially covered. Germans like it when you speak German. Also, I say this to everyone I talk to here, if you want to stay in Germany after you finish your studies, learn the language. Besides certain jobs in high demand, it’s really hard to get a job without knowing the language. Especially if you’ve lived here for a year or two and can’t offer more than basic supermarket-level vocabulary. This is a sign to a future employer that your interest in their culture and people is low. So why expect more from you as a team member? Language courses at university are usually either free or suuuper cheap. It’s also a great way to meet new people.