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.
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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.
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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.
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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.