How to Get Education Loan in Bangladesh

Education is one of the most important investments for a bright future. However, pursuing higher studies can be expensive and challenging for many students and their families. That’s why education loans are available from various banks and financial institutions in Bangladesh to help students achieve their academic goals.

What is an education loan?

An education loan, sometimes known as a student loan, works in the same way as other loans. Depending on the bank, you can borrow between 5 and 20 lac BDT for your further education. You have to repay the loan with interest over a period of time, usually after completing your studies or getting a job.

What are the benefits of an education loan?

An education loan can help you cover the costs of your higher education, such as tuition fees, books, accommodation, travel expenses, etc. You can also choose to study in Bangladesh or abroad, depending on your preference and eligibility. An education loan can also improve your credit history and financial discipline if you repay it on time.

CHECK MORE: How to Choose the Best Bank for Your Education Loan 

What are the eligibility criteria for an education loan?

Different banks have different eligibility criteria for an education loan, but some common requirements are:

  • You must be a Bangladeshi citizen with a valid passport (if you want to study abroad).
  • You must have an excellent academic record with good results in SSC/HSC/O-level/A-level or equivalent exams.
  • You must have secured admission in a recognized educational institution at home or abroad for an undergraduate or postgraduate course.
  • You must have a parent/guardian who will act as a co-applicant and provide collateral or a security deposit (if required by the bank).
  • You must have a student file with the bank and provide all the necessary documents, such as an admission letter, financial statement, course details, etc.

How to apply for an education loan?

To apply for an education loan, you need to follow these steps:

  • Choose a bank that offers an education loan that suits your needs and preferences. You can compare the interest rates, loan amount, repayment tenure, processing fee, etc. of different banks online or offline.
  • Visit the nearest branch of the bank or apply online through their website. Fill up the application form and submit it along with the required documents and security deposit (if applicable).
  • Wait for the bank to verify your documents and approve your loan. This may take a few days or weeks depending on the bank and your profile.
  • Once your loan is approved, sign the loan agreement and collect the disbursement cheque or transfer the funds to your account.

What are some examples of banks that offer education loans in Bangladesh?

Some of the banks that offer education loans in Bangladesh are:

  • Eastern Bank Ltd. (EBL): EBL offers three types of education loans: EduLoan Unsecured (without security deposit), EduLoan Secured (with security deposit), and EduLine (overdraft facility). The loan amount ranges from 1 lac to 25 lac BDT with a repayment tenure of 12 to 60 months.
  • Mercantile Bank Ltd. (MBL): MBL offers an education loan for students who want to pursue higher studies in Bangladesh or abroad. The loan amount is up to 5 lac BDT for studies in Bangladesh and up to 20 lac BDT for studies abroad with a repayment tenure of 6 years.
  • Prime Bank Ltd. (PBL): PBL offers an education loan for students who want to study in reputed universities at home or abroad. The loan amount is up to 10 lac BDT for studies in Bangladesh and up to 20 lac BDT for studies abroad with a repayment tenure of 5 years.

Most asking questions and answers section

Q: What is the interest rate for an education loan?

A: The interest rate for an education loan varies from bank to bank and depends on various factors, such as your credit score, loan amount, repayment tenure, etc. Generally, the interest rate ranges from 9% to 15% per annum.

Q: Can I prepay or foreclose my education loan?

A: Yes, you can prepay or foreclose your education loan before the end of the repayment tenure. However, some banks may charge a penalty fee for early repayment. You should check with your bank before making any prepayment or foreclosure.

Q: Can I get tax benefits on my education loan?

A: Yes, you can get tax benefits on your education loan under Section 80E of the Income Tax Act. You can claim a deduction for the interest paid on your education loan for up to 8 years or until the interest is paid in full, whichever is earlier. However, you cannot claim a deduction for the principal amount of your education loan.

Q: What if I fail to repay my education loan?

A: If you fail to repay your education loan on time, you may face serious consequences, such as:

  • Your credit score will be negatively affected and you may face difficulty in getting loans in the future.
  • Your bank may charge a late payment fee and increase the interest rate on your loan.
  • Your bank may take legal action against you and your co-applicant and seize your collateral or security deposit.
  • Your bank may report your default to the Credit Information Bureau of Bangladesh (CIB) and other authorities.

Therefore, it is advisable to repay your education loan on time and avoid any default. You can also contact your bank and request for a moratorium period, grace period, or restructuring of your loan if you face any financial difficulty.


An education loan is a great way to finance your higher education and achieve your career goals. However, you should also be responsible and careful while taking and repaying an education loan. You should compare different banks and choose the best option for you. You should also read the terms and conditions of the loan agreement carefully and understand your rights and obligations. You should also plan your budget and repayment strategy wisely and avoid any default or delay. By doing so, you can make the most of your education loan and enjoy its benefits.

About Rashed zaman

I'm Rasheduzzaman Shamim. I interested in blogging. I also the local newspaper reporter. That's it. Thanks for reading my bd job vacancy Circular, BD Result Provider Post.