Student Loan for Study Abroad in Bangladesh

Bangladeshi students who study abroad are typically self-funded, rely on family assistance, or may get university fee waivers or reductions in addition to scholarships or awards. Nowadays these amounts are insufficient to pay for everything. There are several institutions that provide student loans for study abroad.

But for many students, the cost of studying abroad—which includes tuition, living costs, and travel—can be a considerable barrier. In this blog post, we'll discuss the process of getting a student loan to study abroad in Bangladesh.

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How to Get a Student Loan for Study Abroad?

There are various processes involved in obtaining a student loan in Bangladesh to study abroad. Keep in mind that depending on your destination country and the lender, the availability of student loans and the precise requirements can change significantly. To lessen your dependency on loans, you should also take into account all potential funding options, like as scholarships and part-time employment.

Research and Choose Your Destination and University
Determine Your Financial Needs
Explore Government-Sponsored Programs
Go Private Lenders and Banks
Complete Loan Applications
Loan Approval and Disbursement
Student Visa and Immigration Requirements
Managing Loan Repayment
Explore Scholarships and Part-Time Work

Requirements of Study Abroad Loans

Depending on the lender or financial institution offering the loan and the nation in which you want to study, the particular requirements for study abroad loans may change. When applying for study abroad loans, you will find a few standard conditions.

The standard requirements are as follows:

Letter of acceptance from respective institutions.
Bank account information and fee schedule are provided.
Authentic personal information.
A picture ID and academic credentials.
Statement from the co-applicant's bank.
Parents' or guardians' income documentation.

Top Banks for Student Loans in Bangladesh

To assist students in pursuing their dreams, practically all banks in Bangladesh offer educational loans for undergraduate and postgraduate degrees both in Bangladesh and overseas. Additionally, these banks give their clients a variety of profitable promotions.

A list of banks that offer student loans is shown below:

Agrani Bank

The government-owned Agrani Bank provides loans to students as part of the Agrani Education Scheme in order to assist them in pursuing higher education. Typically, the bank lends up to BDT 20 lac under its student loan program with a 7% interest rate. However, the loan amount may change based on the student's preferred study location.

The normal length of an Agrani Bank education loan is five to ten years, with monthly payments ranging from BDT 500 to 10,000. The student must complete an application form for a student loan, which is available online or in a nearby location of the bank.

Mercantile Bank

One of the top private banks in Bangladesh, Mercantile Bank was founded in 1999 and provides a range of services to various businesses. They began providing student education loans in 2016. For domestic higher education, they normally offer loans up to BDT 5 lac, and for international study, up to BDT 20 lac, with a 1 to 6-year repayment period.

Students must be Bangladeshi citizens, between the ages of 18 and 26, and possess SSC/HSC/O-level/A-level or similar educational credentials in order to be eligible for this loan. The student's parent or legal guardian must also sign the loan application as a joint applicant with the student.

Shahjalal Islami Bank Limited

One of the earliest Islamic banks in Bangladesh, Shahjalal Islami Bank Limited (SIBL), provides students who want to continue their education in Bangladesh or abroad with a competitive education loan program. SJIBL is distinct in that they have a predetermined loan cap for each student, regardless of where they want to attend school.

For a degree earned in Bangladesh, students are eligible to receive up to BDT 7 lac, and for a degree earned abroad, BDT 15 lac. A benefit of SIBL is that there are no service fees, despite the interest rate being higher than that of other banks at 14% annually. After receiving the loan, the repayment period may last up to 60 months.

City Bank

Since it started operations in 1983, City Bank has grown to be a highly well-known financial institution in Bangladesh. Its "City Scholar" program provides funding for higher education both domestically and overseas. This program allows students to borrow up to BDT 10 lac with no collateral cost under an unsecured facility, or up to 95 percent of their fixed deposit under a secured overdraft facility.

The loan interest rate is far lower than that of other banks, and City Bank's loan processing method is also very quick. Like other banks, City Bank also does not place strict restrictions on how the loan proceeds must be used, allowing them to be used for any purpose.

Eastern Bank

Eastern Bank has earned a reputation as one of the top organizations in Bangladesh's private banking industry. It is renowned for its high yearly turnover and superior customer service. In comparison to other private banks, the bank's student loan program offers loans with sums ranging from BDT 1 lac to BDT 20 lac at an annual percentage rate (APR) of 9%.

However, Eastern Bank does not demand guardianship for the loan, unlike the majority of banks. A non-refundable 1% processing charge is subtracted from the initial loan amount during the loan's 1- to 5-year payback period. In conclusion, Eastern Bank might be a fantastic option for a convenient and reliable banking experience.

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Final Remark

Student loans can be an important source for Bangladeshi students to make the dream of studying abroad a reality. Studying abroad is a transformative experience. The financial load can be reduced with cautious planning, thorough study, and scholarship exploration.

You may turn your desire to study abroad into an enjoyable and financially viable experience by remaining informed and making smart decisions. Accept the chance to learn about another culture, follow your academic interests, and create a better future for yourself as a global citizen.