Your Guide to Financing Higher Education in Bangladesh

Funding higher education is a major investment in your future. For students and parents in Bangladesh, navigating the world of student loans can be confusing. Whether you're aiming for a top local university like BUET or Dhaka University, or planning to study abroad, this tool simplifies the process. We help you compare options from trusted local banks and leading international lenders side-by-side, so you can make an informed financial decision.

How to Use Our Loan Comparison Tool

Finding the perfect loan is just a few clicks away. Follow these simple steps:

  1. Enter Loan Amount: Input the total amount you need in BDT.
  2. Select Study Destination: Choose where you'll be studying.
  3. Choose Course Level: Select 'Undergraduate' or 'Postgraduate'.
  4. Confirm Co-applicant: Let us know if a parent or guardian will co-sign the loan.
  5. Compare Options: Click the button to see a clear, sorted list of your best loan matches.

Local vs. International Lenders: Which is Right for You?

One of the first decisions you'll face is whether to seek a loan from a local Bangladeshi bank or an international financing company. Each has its pros and cons:

  • Local Banks (e.g., City Bank, BRAC Bank, EBL): Typically offer competitive interest rates and are easier to deal with logistically for local studies. However, they almost always require a co-applicant (a parent or guardian) and often have stricter collateral requirements for larger loan amounts.
  • International Lenders (e.g., Prodigy Finance, MPOWER): These companies specialize in funding international students, especially for postgraduate studies at top-ranked universities in the US, UK, and Canada. They often don't require a co-applicant or collateral, basing their decision on the student's future earning potential. Their interest rates may be variable and sometimes higher than local options.

Understanding Key Student Loan Terms

When comparing education loans, you'll encounter specific terms. Here’s a quick guide for parents and students in Bangladesh:

  • Moratorium Period (Grace Period): This is a crucial feature. It's a period where you don't have to make full EMI payments, usually lasting the duration of your course plus 6-12 months. This gives you time to find a job after graduation before repayments start.
  • Co-applicant/Guarantor: This is a person, usually a parent, who shares the responsibility for repaying the loan. It is a mandatory requirement for almost all education loans from Bangladeshi banks.
  • Collateral: This is an asset (like property) pledged as security for the loan. While many local loans require it for amounts over a certain threshold (e.g., BDT 10 Lakh), some international lenders offer collateral-free loans.
  • EMI (Equated Monthly Installment): This is the fixed amount you will pay to the bank each month to repay your loan after the moratorium period ends.

Our tool helps you compare these critical features side-by-side, so you can choose a loan that fits your financial situation and academic goals perfectly.

Frequently Asked Questions (FAQ)

1. Can I get an education loan without a co-applicant or guarantor in Bangladesh?

It is very difficult for local banks in Bangladesh. Most, like City Bank or BRAC Bank, require a parent or guardian as a co-applicant. However, international lenders like Prodigy Finance or MPOWER Financing may offer loans without a co-applicant for students admitted to top-tier universities abroad, based on their future earning potential.

2. What is the maximum education loan amount I can get in Bangladesh?

The maximum loan amount varies significantly by lender. Local banks typically offer up to BDT 20-25 Lakhs. International lenders specializing in study abroad can offer much higher amounts, often up to BDT 80 Lakhs (approx. $100,000 USD), depending on the university and course costs.

3. Does this tool cover all banks and lenders?

We aggregate data from major local banks in Bangladesh and leading international lenders that serve Bangladeshi students. While we strive to be comprehensive, we recommend also checking directly with any specific bank you're interested in.

4. Is the interest rate shown final?

The rates shown are indicative and based on the latest available data. The final interest rate offered to you may vary based on the bank's detailed assessment of your profile, your co-applicant's credit score, and the specific course/university.

5. Will using this tool affect my credit score?

No. Using this comparison tool is not a formal loan application and does not require a credit check (CIB inquiry). Therefore, it has no impact on your or your co-applicant's credit score.

Disclaimer

This is an informational tool and provides estimates based on publicly available interest rates. Rates are subject to change by banks at any time. This tool is not affiliated with, endorsed, or sponsored by banks or its parent company.

Furthermore, this calculator is for informational purposes only. We do not encourage users to accept interest, as it is considered 'haram' (forbidden) in Islam. The Prophet Muhammad (ﷺ) cursed those who deal with interest (riba). As narrated by Jabir (may Allah be pleased with him), "The Messenger of Allah (ﷺ) cursed the one who consumes riba, the one who gives it to others, the one who records it, and the two who witness it." (Sahih Muslim 1598). For more details, you can refer to the Hadith at Sunnah.com.