Consolidate Student Loans

Education is the backbone of a nation. But pursuing higher education is costly. Most of the Bangladeshi students are meritorious. But most of the parents of the students are not solvent enough to support the cost of education. Primarily, they have to look for loan from relatives for their child to complete the dream education. Other option is looking for education loan from institution. Many of us do not know which bank have the education loan facility for completing the dream education for their child. There are lots of banks operating in Bangladesh. The lists of Banks are as follows:

Nationalized Commercial Bank
•   Sonali Bank
•   Agrani Bank
•   Rupali Bank
•   Janata Bank
Private Commercial Banks
•   Mutual Trust Bank Limited
•   BRAC Bank Limited
•   Eastern Bank Limited
•   Dutch Bangla Bank Limited
•   Dhaka Bank Limited
•   Islami Bank Bangladesh Ltd
•   Uttara Bank Limited
•   Pubali Bank Limited
•   IFIC Bank Limited
•   National Bank Limited
•   The City Bank Limited
•   NCC Bank Limited
•   Prime Bank Limited
•   Southeast Bank Limited
•   Al-Arafah Islami Bank Limited
•   Social Islami Bank Limited
•   Standard Bank Limited
•   One Bank Limited
•   Exim Bank Limited
•   Bangladesh Commerce Bank Limited
•   First Security Islami Bank Limited
•   The Premier Bank Limited
•   Bank Asia Limited
•   Trust Bank Limited
•   Shahjalal Islami Bank Limited
•   Jamuna Bank Limited
•   ICB Islami Bank
•   AB Bank Limited
Foreign Commercial Banks
•   Citibank
•   HSBC
•   Standard Chartered Bank
•   Commercial Bank of Ceylon
•   State Bank of India
•   Habib Bank Limited
•   National Bank of Pakistan
•   Woori Bank
•   Bank Alfalah
Specialized Development Banks
•   Bangladesh Krishi Bank
•   KARMASANGSTHAN Bank
•   Rajshahi Krishi Unnayan Bank
•   Progoti Co-operative Landmortgage Bank Limited (Progoti BanK)
•   Grameen Bank
•   The Dhaka Mercantile Co-operative Bank Limited (DMCBL)
•   Bangladesh Development Bank Ltd
•   Bangladesh Somobay Bank Limited(Cooperative Bank)
•   Ansar VDP Unnyan Bank
•   BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited)
It is a huge list. If you look for education loan to those Banks, you will be disappointed in most cases. Most of the bank does not have the product of education loan. I have searched all of the banks operating in Bangladesh to get the information which banks are providing education loan. The following banks of Bangladesh have the product of education loan under different name and style:
•   AB Bank Limited
•   Dutch-Bangla Bank Limited
•   Eastern Bank Limited
•   One Bank Limited
•   Prime Bank Limited
•   Premier Bank Limited
•   The City Bank Limited
•   Trust Bank Limited
•   Shahjalal Islami Bank Limited
Now, I will discuss Education Loan of different bank with criteria , amount of loan, security required etc.
Name of Bank : AB Bank Limited
There are two products for education loan in AB Bank Limited. These are:
1.   Education Loan (disbursed to parents/guardian)
2.   Education Loan (for executive)
The details features of the two products described below:
(1) Name of Loan Product: Education Loan (disbursed to parents/guardian)
Purpose: To assist Parents/guardians for Admission/Education Fees, Semester Fees, Study abroad for their children/wards
Loan Limit: Minimum Tk. 50,000/- and Maximum Tk. 5,00,000/- (upto Tk. Ten lac covered by tangible security acceptable to the bank)
Charges: Application fee: Tk. 500/- . Processing fee: 1% on the approved loan amount or Tk. 1000.00 whichever is higher
Tenor: Minimum 12 months and Maximum 48 months
Rate of Interest: 14.50% p.a. - 17.50% p.a.
Guarantee: Personal guarantee of spouse/parents only

(2) Name of Loan Product: Education Loan (Executive)
Purpose: To assist Executives pursue Higher Studies/professional qualification at local/overseas institutions
Loan Limit: Minimum Tk. 50,000/- and Maximum Tk. 5,00,000/- (upto Tk.Ten lac covered by tangible security acceptable to the bank)
Charges: Application fee: Tk. 500/- . Processing fee: 1% on the approved loan amount or Tk. 1000.00 whichever is higher
Tenor: Minimum 12 months and Maximum 48 months
Rate of Interest: 14.50% p.a. - 17.50% p.a.
Guarantee: Personal guarantee of spouse/parents only

Name of Bank : Dutch-Bangla Bank Limited
There is a product for education loan in Dutch-Bangla Bank Limited. The details of the product are as follows:
Name of the Product: Education Line:
Purpose: (1) For Higher education purposes (2) Tuition fees or other Educational expenses / To purchase of computer etc.
Loan Range: Minimum BDT Tk.50,000/ to Maximum Tk.10,00,000/-
Interest Rate: Competitive
Tenor: 1 to 5 years
Repayment: Equal monthly installments
Partial repayment: Allowed
Earlier full settlement: Allowed any time.
Security: (1) No cash security; (2) No personal guarantee needed.
Name of Bank: Eastern Bank Limited
Eastern Bank Limited (EBL) developed the Education Finance Pack with three types of loan facilities so that you can select matching your need. EBL Education Loan covers the entire cost of your child’s education to help you send your children for higher education abroad. So be it for home or abroad, for your child or for yourself – EBL Education Finance Pack is always beside you.
Education Loan Products of Eastern Bank Limited are as follows:
1.   EduLoan Unsecured – Education Loan without Security Deposit
2.   EduLoan Secured - Education Loan with Security Deposit
3.   EduLine – Credit Facility against Security Deposit
The details features of the three products described below:

(1) EduLoan Unsecured – Education Loan without Security Deposit

Purpose: For payment of admission fee, tuition fee, semester fee, other fees as stated by the educational institutions, living/lodging expenses and traveling expense. Total expense estimation needs to be submitted by the applicant with supporting documents. Loan amount will be up to 80% of total expense.
Maximum Loan Amount : Maximum loan amount BDT 10,00,000 or 10 times of Gross Monthly Income of the applicant.
Processing fee: 1% of the loan amount
Repayment tenor: 12 – 60 months
Partial repayment: Allowed
Interest Rate: 18%
Student File Service: Available
Mode of Disbursement:
Study in Bangladesh: Initial admission fee & initial semester/tuition fee to be remitted directly to the institutions through Pay Order.
Study Abroad: Initial admission and initial semester/tuition to be remitted abroad through EBL Smart Student File. Payment for traveling expenses to be reimbursed through Pay Order favoring the travel agent.
Other Condition: Only the Spouse can be joint Applicant, provided combined Gross Salary is BDT 30,000/-

(2) EduLoan Secured – Education Loan with Security Deposit

Maximum Loan Amount: Loan amount is 95% of the security deposit (EBL Fixed Deposit).
Processing fee: 1% of the loan amount or BDT 10,000, whichever is higher
Repayment tenor: 12 – 60 months
Partial repayment: Allowed
Interest Rate: Fixed Deposit Receipt interest rate +3%
Student File Service: Available
Processing Time: Within same day processing
Other Condition: Joint Applicant Possible, provided he/she is a co-applicant of the security
Personal Guarantee : No personal guarantee required

(3) EduLine Secured – Credit Facility against Security Deposit

Maximum Loan Amount: Loan amount is 95% of the security deposit (Any Bank FDR).
Processing fee: 1% of the loan amount or BDT 2,000, whichever is higher
Repayment tenor: Not specified
Partial repayment: Allowed
Interest Rate: Fixed Deposit Receipt interest rate +3%
Interest Calculation: Interest against utilization only
Student File Service: Available
Processing Time: Within same day processing
Other Condition: Joint Applicant Possible, provided he/she is a co-applicant of the security
Personal Guarantee: No personal guarantee required

Name of Bank: One Bank Limited
Name of Loan Product: Student Loan

Features:
•   Abroad: Tk.1,00,000-Tk.10,00,000
•   Local Private University: Tk.50,000-Tk.3,00,000
•   English Medium School: Tk.50,000-Tk.3,00,000

Loan Tenure:
•   Abroad: 12-48 months
•   In Local Private University: 6-12 months
•   English Medium School: 6-12 months

Eligibility:
•   Salaried personnel of reputed organizations, Businessmen of repute, Self-employed professionals.
•   Must be a Bangladesh National.
•   Within the age group of 35-57 years.
•   For Salaried Personnel - Minimum 5 years of total service with minimum of continuous employment with present employer.
•   For Businessmen - Minimum 5 years in current business.
•   For Self-employed Professionals - Minimum 5 years in current practice.

Name of Bank: Premier Bank Limited
Name of the Loan Product: Student Credit Programme
Premier Bank Limited introduced a credit scheme which is being first of its kind whereby the meritorious students in the country shall enjoy credit facility in each month to defray educational expenses. The loan is to be disbursed in a lump sum amount or as monthly installments basis where necessary. Parents/guardian may apply along with estimate of education expense in a prescribed form to any branches of the Bank duly recommended by the Head of the Department or Head of the Education Institution.
Name of Bank: Prime Bank Limited
Prime Bank Limited Education Loan enables parents/guardians/students for those who want to fulfill their dreams better education. You can avail the loan with competitive rates, convenient features and simple procedures.
Name of Loan Product: Education Loan

Key Feature:
•   Loan amount maximum 05 lac
•   Income of guardian, spouse, parents and siblings if any are considered
•   Competitive interest rates on a monthly/quarterly reducing balance
•   Loan tenure - maximum 4 years
•   Convenient partial or early settlement

Criteria to be eligible :

Age: At least 25 years
Professional Experience:
-   Salaried: permanently Employed for at least 2 years by a well-reputed organization including at least 6 months with present employer
-   - Self employed: Professional experience or business establishment for at least 2 years (with adequate proof)
Minimum Monthly Income:
-   Salaried: BDT 10,000
-   Self Employed: BDT 25,000
Security:
•   Personal guarantee of the borrower/s
•   One personal guarantee acceptable to Prime Bank
•   Post-dated cheque

Name of Bank: The City Bank Limited
Name of Loan Product: City Scholar
City scholar is a unique education loan offered to fund higher studies not only in Bangladesh but also abroad. It offers up to 95% of you fixed deposit value as student loan or up to tk.10 lac on purely collateral-free basis.
Eligibility:
This education loan is designed to meet any type of educational financial need of a student. Any creditworthy individual can avail this loan facility for his/her offspring or for himself/herself.

Features:
•   Secured overdraft facility –value can be up to 95% of the security deposit.
•   Unsecured facility – loan amount up to Tk. 10 Lac
•   Secured Equal Monthly Installments Facility – loan amount up to 95% of the security deposit
•   Quick processing time
•   Interest rate lower than other competitive products
•   Student file service facility

Documentations
•   One valid Passport copy of applicant and student (for study abroad)/ Driving License/ Voter ID
•   Copy of College / University admission paper and proof of formal acceptance by student along with other documents (for abroad)
•   2 copies of photograph of the applicant and 1 copy photograph of the guarantor (if availing unsecured loan portion)
•   Business card (if any)
•   Copy of Tin related documents (TIN certificate in not mandatory)
•   Letter of Introduction (in case of salaried executives) as per City Bank’s format or salary slip if that covers the major information of LOI
•   Bank Statement for last 3 months for salaried persons and 6 months for professionals/businessmen for unsecured loans

Name of Bank: Trust Bank Limited
A substantial amount of finance is required to give your child the best education or to get a higher degree either at home or abroad. TBL, "Education Loan" relief you from this burden and ensure uninterrupted study through steady flow of cash.
Name of Loan Product: Education Loan

Eligibility
•   Employees of confirmed service holders, Businessman, Professionals
•   Adequate cash flow to repay the loan
•   Maximum age limit of the borrower – 60 yrs; in exceptional case, MD can relax the age limit up to any age depending on the merit of the case.

Loan Limit : 0.5 lac -3.00 lac
Interest Rates (%) :18.50%
Equity: 10%
Loan Period/ Tenor: 1 year to 3 years
Processing Fee: 1% (15% VAT will be added)
Risk Fund: Nil

Name of the Bank: Shahjalal Islami Bank Limited

Name of Loan Product: Education Loan

Eligibility:
•   Any Bangladeshi credit worthy salaried or a self-employed person can avail this facility for their Children.
Purpose of Investment
•   To pay the Tuition fees.
•   To pay the Hostel fees.
•   To meet Travel expenses.
•   Purchase of computer, books etc.

Investment Amount
•   In Bangladesh: Maximum Tk. 7,00,000/-
•   In Abroad: Maximum Tk. 15,00,000/-
Period: Maximum 60 months.
Margin:
- In Bangladesh: 10% margin
- In Abroad: 20% margin.
Repayment Mode: Equal monthly installments.
Profit Rate: 14.00% per annum
Special Condition: Student file must be maintained with Shahjalal Islami Bank Ltd.
Special Feature: Partial adjustment or Full Pre-payment of liability at any time allowed without any early settlement charge.

Student File Service of Different Bank in Bangladesh:
Lots of students from Bangladesh are going to study abroad. They have to pay for educational and living expenses. For that purpose, students have to open a student file. Only a few banks have the student file service in Bangladesh. But, it is not possible for any person to make payment personally to foreign educational institute. It is prohibited as per Bangladesh Bank Circular. It is only possible through Bank with fulfillment of some condition of Bangladesh Bank. The following banks are providing student file service to the students of Bangladesh for pursuing education abroad.
•   IFIC Bank Limited
•   Commercial Bank of Ceylon
•   Standard Chartered Bank Limited
Now , I will discuss terms and conditions of the mentioned banks for your convenience.
Name of the Bank: Commercial Bank of Ceylon

Commercial Bank of Ceylon Student Remittance Services provides ease and convenience of Transferring money for your child's educational expenses for pursuing Undergraduate, Graduate and Postgraduate courses abroad. Commercial Bank of Ceylon personally care that money is transferred in time and in a safe manner.

Name of the Service: Student Remittance Service

Feature:
•   Easy & Simple procedures
•   Fast Money Transfers - Wire transfer of payment through SWIFT in 13 different currencies - Quick and Safe
•   Expert advice in filing of documents
•   CBC maintains a specialized and exclusive department equipped by experienced officers of the Bank
•   Application processing fee of CBC is the lowest amongst the multinational Banks in Bangladesh
•   No Hidden Charges

Name of the Bank: IFIC Bank Limited

Name of the Service: Student File Service

This Bank provides Remittance service of Foreign Exchange for Bangladeshi student going abroad for education purpose in regular courses in recognized educational institutions in Undergraduate & Post-graduate level.

Applicable Countries
•   U.S.A. & Canada
•   U.K., Australia, New Zealand
•   SAARC Countries, Myanmar
•   & other countries

Handling of Student File
Authorized Dealer Branches issue Draft for: Tuition Fees, Living Expense

Currencies handled

•   U.S. Dollar, British Pound Sterling
•   EURO, Australian Dollar, Canadian Dollar

Moreover, other than academic courses
•   Commercial Flying
•   Computer Programming
•   Hotel Management and Catering
•   Chartered Accountancy
•   Cost & Management Accountancy are special fields for which students are allowed to open Student File.

Charges for Handing of Student File (subject to change) as on 03.12.2011

Name of Country: Australia/New-Zealand
Currency: AUD
File Opening Charge: Tk.6, 000.00
Renewal Charge: Tk.2, 000.00

Name of Country: UK
Currency: GBP
File Opening Charge: Tk.3, 000.00
Renewal Charge: Tk.1, 000.00

Name of Country: European Union
Currency: Euro
File Opening Charge: Tk.3, 000.00
Renewal Charge: Tk.1, 000.00

Name of Country: Canada
Currency: CAD
File Opening Charge: Tk.3, 000.00
Renewal Charge: Tk.1, 000.00

Name of Country: USA & Rest of the World
Currency: USD
File Opening Charge: Tk.3, 000.00
Renewal Charge: Tk.1, 000.00

Name of Country: SAARC countries & Myanmar
Currency: ACU
File Opening Charge: Tk.1, 000.00
Renewal Charge: Tk.300.00

Name of the Bank: Standard Chartered Bank
Standard Chartered Bank is offering fund transfer solutions for the students who aspire to pursue Higher Studies in reputed institutions aboard. The fund will cover both educational and living expenses. For each student, Standard Chartered Bank will open and maintain a file till completion of the course.

Name of the Service: Student File

Special Features
•   Fund Transfer choice- Demand Draft, SWIFT Transfer, Travelers Cheque etc.
•   Competitive Pricing
•   Student Centre- Dedicated centers are setup at Kakrail & North Gulshan Branch for opening and maintaining Student Files. Besides, Student Files can also be opened in our other branches as mentioned overleaf.
•   Attractive alliance- Standard Chartered has arrangements with the below organizations that provide education consultancy services in foreign universities/institutes & there will be more in future-
o   SSBCL
o   Rico International
o   Nice Education
o   Global Study
o   Student Fair Consultancy

Application criteria
•   Bangladeshi National
•   The admission must be unconditional and in any:
o   Regular Undergraduate Program
o   Regular Post Graduation Program
o   Language course pre-requisite to all kind of regular course
o   Professional diploma/certificate courses in recognized institutions abroad
Prior approval from Bangladesh Bank is required for students opting any other courses/certificates/ degrees other than those mentioned above.

Documents requirement
•   Application duly filled in
•   Original & photocopy of admission letter issued by the educational institution in favour of the student (such as the I-20 in case of US institutions)
•   Original & photocopy of estimate relating to annual tuition fee, board & lodging, incidental expenses issued by the concerned educational institution (I-20 in case of US institutions)
•   Original all educational certificates of the applicant and attested copies of those to be submitted
•   Valid Passport
•   Refund Policy

Thanks to all of you who have read this topic for getting idea about scenario of education loan of Bangladeshi students.

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