How to get education loan in Bangladesh for studying abroad?

Nowadays many parents have dreamt of a dream to educate their child in a reputed educational institution especially the best one in the world. Because we believe that a good institution may help our child to flourish their potential. Moreover, the supportive and nurturing environment will unveil your child’s unique skills and talents.

But sometimes financial inadequacy becomes the major obstacle against making the path for higher education in abroad for our child. To help your child to make understand his/ her true academic potential most of the banks in our country developed education loan product for funding the entire education cost of your child in abroad to their desired institution with a lucrative package. Here are the details of education loans provided by different banks in our country. 

READ ALSO: How to get a Car Loan in Bangladesh?

Eligibility of the Student for education loan:

i. Student who has passed H.S.C/Hon’s or equivalent examination and studying or pursuing study for higher education outside the country having at least First Division or GPA 4.00 in the scale of 5.00 or GPA 3.00 in the scale of 4.00 in all the examinations.

ii. Compiled all preconditions for getting admission and visa formalities.

iii. Students who have IELTS/ TOEFL etc. with acceptable scores.

iv. Student should have an offer letter from the University/College where he/she is intended to study.

v. Student must have a valid passport.

vi. Have no bad reputation, e.g., criminal record, political connection, etc.

Customer Segment and Eligibility of the applicant:

i. The applicant should be a Bangladeshi individual (supported by NID) who has the means and capacity to repay the loan.

ii. The applicant should have a fixed source of income.

iii. Minimum monthly net income should be at least 3 (Three) times of monthly installment.

iv. If the loan amount exceeds Tk.5.00 lac, the applicant must be a taxpayer.

v. The applicant should be the Parent or first relative of the student who bears the educational expenses.

Age Limit:

The maximum age of the applicant should not exceed 65 (Sixty-Five) years at the time of maturity of the loan.

Loan Limit

Minimum: BDT 1,00,000.00, Maximum: BDT 25,00,000.00 (May vary from bank to bank)

Interest Rate:

09.00% p.a. with quarterly rest. (May change as per Banks discretion).

Loan Application Fees

BDT 600.00 (May vary from bank to bank).

Required Documents for education loan:

1. Bank statements for a minimum of 06 (six) months.

2. Salary certificate (in case of a salaried person).

3. Proof of income for rental property (if any), For a salaried person, letter of introduction & salary certificate from the competent authority and For a businessman, valid trade license, income statement and other papers of firm/ company with financial reports.

4. Any other documents that stand as proof of income.

5. Copy of National ID of Applicant, spouse and Passport of the student.

6. 2 Copies of recent lab printed passport size photograph of Applicant, Student and Guarantor.

7. Up to date Income Tax Clearance Certificate/ Tax Return/ Tax.

8. Acknowledgment Receipt of the applicant (if applicable).

9. Personal Net Worth Statement of the applicant.

10. Offer Letter from a foreign educational institution.

11. Profile of the selected educational institution.

12. Study plan with budget i.e. information regarding tuition fees and living expenses etc.

13. Photocopy of all relevant educational certificates & transcripts including IELTS & TOEFL (if any). Originals to be shown at the branch.

14. Photocopy of VISA (if available).

15. Completion of A/c opening formalities including Letter of Introduction.

16. Letter of Authorization from the Student for whom the Loan will be availed.

17. Any other documents that are prudently felt necessary.

Procedure followed by the bank for sanctioning education loan:

Procedures may vary from bank to bank. But almost all banks are following quite the same procedure for sanctioning education loans.

i) First of all, Student/ Guardian has to apply in a plain paper for loan.

ii) Applicant has to submit all required papers along with the application. Bank will scrutinize the papers/ documents and proceed for further steps.

iii) Guardian/ applicant will have to pay processing fee of the application, retention of seats etc. with the foreign institution (if required) from their own source.

iv) After scrutinizing, bank sanctions the loan amount and transfer it to a deposit account of the applicant for visa purposes under lien marking, maintaining 10% equity for maximum of 03 months. Within 03 months, the loan to be fully adjusted after getting/ refusal of visa.

v) If the student gets visa, the borrower will submit an application and supporting documents to release foreign currency. In this case, mortgage/securitization is to be done before disbursement as per the existing procedure.

Branch will disburse the loan and proceeds will be used for issuing foreign currency in favor of the institution concerned in the form of FTT/Draft as per the estimate furnished by the educational institution. Board/lodging/incidental expenses etc. may be issued in favor of the student in the form of FTT/Draft etc. If required, multiple disbursements may be allowed. But limit must not be exceeded under any circumstances.

vi) The facility of purchase of foreign currency will not be admissible for more than one academic year at a time. Branch will maintain disbursement schedule for release of foreign exchange.

vii) Branch will also maintain separate file for each student with all relevant papers in readiness for perusal of Bangladesh Bank. All purchases of foreign currency through the entire duration of the study should be from the same Branch.

viii) Foreign Exchange guidelines of Bangladesh Bank to be followed strictly & meticulously for opening student files & release of foreign currency.

Though the loan process might be lengthy, education loan scheme provides a unique opportunity for talented student who has potential but money is the only hindrance.


01. Who will get Education loan?

Any Bangladeshi student who is eligible for getting higher education at home and abroad can apply for this loan.

02. What is the tenure of an education loan?

From 12 months to 72 months. It depends on study tenure and banks satisfaction.

03. Which bank provides education loans?

Eastern Bank Ltd., Mercantile Bank Limited, Jamuna Bank Limited, NCC Bank Limited, Pubali Bank Limited, Uttara Bank Ltd., One Bank Limited, Shahjalal Islami Bank and some other banks are proving education loan.

04. What is the maximum student loan amount one can get for overseas studies?

Most of the bank allows minimum 01.00 Lac to Maximum 25.00 lac.

05. Are there any charges or processing fees?

Banks are charging in the form of loan application fees, loan processing fees, CIB charges etc. which may vary from bank to bank. Some bank charges 1% of the loan amount as a Loan processing fee. You can check bank’s schedule of charges before taking the loan.

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