Education Loan in Bangladesh
A loan used for an academic program’s cost is considered an education loan. Education loans are usually for a college or university, but they can also be used for school as personal loan. An education loan is also called a student loan.
The cost of education in Bangladesh and abroad is constantly increasing. College and school students have found it challenging to acquire quality education due to rising fees, so higher education is currently the only way to cover costs through education loans. Education loans will help you get benefits other than just paying college fees.
Education loan covers more than education
Education loans are a type of financial aid that helps cover the costs of completing an academic program such as college, professional school, or career training. Grants or scholarships do not have to be repaid in the education sector, but education loans must be repaid.
Students and parents can get education loans from the Department of Education by completing the loan application at the financial institution. Or anyone can apply for education loans from private lenders.
We all know that the primary purpose of education loans is to pay high tuition fees for colleges, and universities in the country or abroad. But, did you know that a study loan can do much more than that? With an education loan, you can also pay for your accommodation, travel expenses, library subscriptions, study materials, laptops, and other overhead costs incurred during your course.
An Education Loan benefits
After completing your course, you will get an extra period of about 6 to one year. This period is known as the embargo period. Banks and financial institutions give you this facility so that you can find a job and settle down after your course without worrying about paying off your education loan. Many people are unaware of the concept of deferment; hence, taking an education loan is one of the biggest opportunities for financing education as opposed to other methods of this loan. However, don’t abuse this moratorium and start your payments early to reduce the interest so as not to carry a heavy debt burden later.
Required Documents for Education Loan
To be eligible for an Education Loan Offer, every student needs to submit the following documents:
- The academic mark sheet and certificates
- Admission Letter or an offer letter from the respective college/university
- Fee structure of the course
- KYC document of the applicant and co-applicant
- Income proof in some cases.
List of Education Loans in Bangladesh
| Bank Name | Interest Rate | Processing Fee | Loan Amount | Tenure Range | Details |
|---|---|---|---|---|---|
| Agrani Bank Limited | 9.00% | — | BDT 5.00 Lac | Up to 60 months | Explore |
| BRAC Bank Limited | 9.00% | 0.50% of the loan amount | BDT 20.00 Lac | Up to 60 months | Explore |
| Eastern Bank Limited | 9.00% | 1.00% | 25,00,000.00 | 12 Months to 60 Months | Explore |
| Jamuna Bank Limited | 9.00% | — | BDT 10.00 Lac | Up to 48 months | Explore |
| Janata Bank Limited | 11.00% | — | Up to BDT 10.00 Lac | Up to 60 months | Explore |
| Mercantile Bank Limited | 9.00% | Up to 1% on loan amount | Up to Tk.20.00 Lac | Up to 72 months | Explore |
| Pubali Bank Limited | 9.00% | 0.50% of the loan amount | Up to TK.25.00 Lac | 12 Months to 60 Months | Explore |
| Uttara Bank Limited | 9.00% | prepaid on payment of 2% breakage cost | BDT 3.00 Lac | Up to 60 months | Explore |
Lenders consider the following factors when approving a loan:
- The course and institute you choose
- The amount you need for the course
- Your all academic performance
- Repayment capability of your family
- Family assets information
- Annual income of the guardian.
Eligible courses in Bangladesh or Abroad for education loan:
- Undergraduate programs
- Postgraduate programs
- Doctoral courses and PhDs
- Job-oriented courses
- Certificate courses of 6 months or longer duration
- Technical/diploma/professional courses.
Frequently Asked Questions (FAQs) on Education Loan in Bangladesh
Will I get the same amount in education loans for equivalent courses at home and abroad?
- No, education loans for courses in Bangladesh do not offer the same amount of money as courses of comparable level abroad. Offers higher loan amount for courses abroad as fees and other costs are higher than in Bangladesh.
What are the interest rate for Education Loans?
- Minimum interest rate is 9% and maximum 11%
Are NRBs eligible for education loan from banks in Bangladesh?
- One eligibility criterion for an education loan is that the individual should be a Bangladeshi national.
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