Many aspiring students of Bangladesh dreams of a better higher education opportunity. The reputed public Universities of Bangladesh can accommodate a limited number of new students every year. As the scope of international quality higher education is limited in Bangladesh, many students want to study abroad. Besides, some private universities of Bangladesh are also providing world-class education. However, the cost of studying abroad or in private institutions is out of reach for many. Education loans can be a great option for them. Let’s take a deeper look into the student loan schemes of Bangladesh and what you should consider before opting for one.
What is an Education Loan?
Education loan or student loan works similarly like other loans. Depending on banks, you can get about 5 Lac to 20 Lac BDT in loans for your higher studies. Most banks offer a competitive interest rate on the loans which makes it easier to pay back once you settle down.
Education loans are a flexible and easy loan scheme that is offered by almost all the leading private, including some government banks of Bangladesh.
In Bangladesh, a good number of students fail to complete the higher education cycle due to a lack of funds. In that regard, student loans can act as a financial net for the students to complete their education and create a career for themselves.
Things to Consider Before Getting a Student Loan
Eligibility for Loan
Every bank has a stipulated requirement for loans. The eligibility criteria are listed on the respective websites of each bank. Every bank has a minimum parental income requirement or security deposit. These minimum criteria grossly differ from bank to bank. The eligibility criteria will help you to deduce which scheme will work best for you.
Interest Rate and Repay Period
Another factor to consider is the interest rate and the repayment period of the loan. The interest rate differs from bank to bank and so does the repayment period. It generally hovers between 9% to 12%. The repayment tenure goes as high as 60 months. Based on your needs and ability, you can easily choose the best possible option for yourself.
Understand the Terms and Conditions Well
It’s important to read the terms and conditions well before signing up for a loan scheme. There might be charges and rules that aren’t explicitly mentioned in the brief. So, it’s important to be well informed about everything beforehand.
Calculate Your EMI
Regardless of the duration of the repayment, you need to have a clear idea about the monthly EMI of your loan. It is granted that you won’t have the means to pay a hefty premium monthly. Choose a repayment duration based on your ability to coincide with the EMI.
Best Banks for Education Loans in Bangladesh
Mercantile Bank Student Loan
Mercantile Bank was established in 1999 as one of the premier private banks of the country. The bank operates with a range of services in different sectors and industries of Bangladesh. The company started providing student loans in 2016 to eligible candidates.
The loan limit to study in Bangladesh is 5 Lac and for abroad, it’s 20 Lac. The loan is issued for students who have completed their HSC or equivalent degree. The interest rate is 9% per annum which is added every year. The repayment tenure is 12 to 72 months. You are eligible to use the money for admission fees and accommodation. In addition to that, all expenses related to the completion of the degree are covered within the scope of the loan. You can learn more about the student loan scheme of Mercantile bank from here.
One Bank Student Loan
One bank was founded in 1999. Since its inception, One bank has been a key player in the private banking sector of Bangladesh. This bank also offers an education loan scheme. However, there are certain differences.
The One bank education loan isn’t allocated to the student. Rather a parent or an eligible guardian has to apply for the loan on behalf of the student. The minimum eligibility for a salaried guardian is 25000 BDT to 50000 BDT monthly income depending on the profession of the guardian.
The loan ranges from 50000 BDT to 20 Lac BDT depending on the need of the student. The interest rate is set at 9% per annum. You will be given up to 60 months tenure to repay the loan. The loan is applicable for usage in education-related purposes both at home and abroad. However, the minimum salary cap for the guardian is an added constraint for many aspiring students with financial needs. To learn more about the loan and its criteria, you can refer here.
best-education-loan- Bangladesh
Student loan for higher studies
Eastern Bank Student Loan
Eastern bank has long been one of the leaders in the private banking sector of Bangladesh. Whether it’s the high turnover rate in each FY or their stellar customer service and ease of banking, the bank has been a top choice for local and international banking.
The student loan scheme of Eastern bank is similar to One bank and Mercantile bank. Unlike One bank, there is no guardianship limitation with the loan scheme. The loan amount ranges from 1 Lac BDT to 20 Lac BDT depending on the local or international needs of the student. The standard 9% rate per annum is also applied to the loan. You are getting a 12 to 60 months repayment period with the student loan scheme. However, there’s a catch.
EBL charges a 1% processing fee for your loan. This is non-refundable and is deducted from your original loan amount. Other than that, the EBL education loan can be a great choice if you want a fast and reliable banking experience. You can read more about the loan scheme here.
Grameen Bank Student Loan
Grameen bank has been at the forefront of the rural development of Bangladesh since its inception. The revolutionizing microloan scheme has changed the life of many at the grassroots level for the better. The impact of Grameen Bank in the poverty alleviation endeavors in Bangladesh has been commendable.
Grameen bank is the oldest bank to offer student loans to aspiring higher study pursuers. The bank has been providing loan schemes since 1997. Their education loan is unlike any other in Bangladesh. The loan is only eligible for the sons and daughters of Grameen bank members. Rather than issuing a lump sum, Grameen bank offers the allocated amount in installments based on the progress of the student. The loan is subject to cancellation if the student fails to show academic excellence.
Regardless of the amount, there is no interest associated with the loan. The student will have to pay a 5% service charge after getting a job and that is all.
NCC Bank Education Loan
NCC bank is another leading bank of Bangladesh operating largely in the private sector. The bank has a diverse range of loan schemes available to a foray of client base. Their student loan scheme is unique considering they provide the highest sum of loans among all other banks.
The loan applies to all Bangladeshi students who have completed HSC or equivalent degrees. For students looking to pursue their higher studies abroad, the visa and admission documents have to be presented as part of the requirement. The loan ranges from 1 Lac BDT to 1 Crore BDT depending on the needs and financial state of the applicant.
However, NCC bank also has one of the highest interest rates with 12.5% per annum. The repayment period for the loan can be extended up to 60 months. For more information on the NCC bank student loan scheme, you can refer here.
Shahjalal Islami Bank Student Loan
Shahjalal Islami bank has been one of the pioneers of Islami banking in Bangladesh. The bank also has a lucrative loan scheme for students wishing got pursue higher education in Bangladesh or abroad.
Unlike other banks, SIBL has an individual fixed cap on a loan based on whether the student will pursue their studies in Bangladesh or abroad. For a Bangladeshi degree, the student will get a maximum loan of 7 Lac BDT and for abroad, they will get 15 Lac BDT.
The interest rate is the same as most other leading banks at 9% per annum. You will get a maximum repayment period of 60 months from the issuance of the loan. There is no service charge with this loan scheme which is a bonus. However, you need to have a salaried guardian to be eligible for this loan.
Agrani Bank Student Loan
Agrani bank is the only government bank, both commercial and specialized to offer student loans. The bank has a lucrative student loan scheme and it’s in line with most other leading private banks.
Like other banks, Agrani bank also offers student loans up to 20 Lac BDT.
The student has to expressly declare whether they will be pursuing the degree in Bangladesh or abroad. Based on that, the loan amount may vary. The interest rate is 9% per annum which is standard in all the leading banks.
The repayment duration is 60 months from the date of loan issuance. Since it’s a government bank, there is a high chance of easy loan disbursement which makes it a comprehensive choice in our list. However, you need to have a salaried guardian to be eligible for this loan.
Source: United News of Bangladesh