Exim Bank to offer interest-free loan for poor, meritorious students
Wednesday, 19 September 2007
Jasim Uddin Haroon
The Exim Bank, a third generation bank, is stepping forward with its innovative financial product - interest free education loan - for the country's insolvent students.
The bank will launch the first-ever product just after Eid.
Chairman of the Exim Bank Md Nazrul Islam Majumdar said the main objective of the loan is to help meritorious and insolvent students so that they can stand on their own feet and serve the society.
"This is completely interest free and students will repay it within five years of their job," Nazrul Islam added.
City's 100 meritorious students will be brought under the loan in the first phase and later it will be spread across the country, bank sources said.
The bank will initially sanction Tk 20 million for the project.
Students belonging to public universities and colleges in Dhaka will get Tk 3000 a month for a period of five years.
"We will initially begin through the students of medical colleges, public universities and engineering colleges and the Bangladesh University of Engineering & Technology," said the bank's head of human resources department Shah Mohammed Abdul Bari.
A student will receive a loan of Tk 180,000 during the five years as expenses and Tk 20,000 for buying books and other things.
The loan will have to be repaid within five years of their service life with no interest.
Bank sources said the students who will be selected for the loan will be able to repay the loan either by installments or in one go.
The loan recipients will have to pay at least Tk 3000 monthly if they opt for installments during their service life.
Bank sources said only those students who are poor and meritorious will be eligible for the loan.
"We will evaluate the applicant's economic condition and his or her merit for the loan," Shah Mohammed Abdul Bari said.
Secondary School Certificate and Higher Secondary Certificate will have to be kept as security for the loan.
Apart from this, a recommendation from the head of the department concerned will also be required for the loan.
And certificates to be issued by the university concerned will be kept in the bank up to repayment of the loan.
"We will have agreement with registrars of the respective educational
organisations so that they send certificates after completion of the studies of the students who took loan from the bank," said one senior official of the bank.
The Exim Bank, a third generation bank, is stepping forward with its innovative financial product - interest free education loan - for the country's insolvent students.
The bank will launch the first-ever product just after Eid.
Chairman of the Exim Bank Md Nazrul Islam Majumdar said the main objective of the loan is to help meritorious and insolvent students so that they can stand on their own feet and serve the society.
"This is completely interest free and students will repay it within five years of their job," Nazrul Islam added.
City's 100 meritorious students will be brought under the loan in the first phase and later it will be spread across the country, bank sources said.
The bank will initially sanction Tk 20 million for the project.
Students belonging to public universities and colleges in Dhaka will get Tk 3000 a month for a period of five years.
"We will initially begin through the students of medical colleges, public universities and engineering colleges and the Bangladesh University of Engineering & Technology," said the bank's head of human resources department Shah Mohammed Abdul Bari.
A student will receive a loan of Tk 180,000 during the five years as expenses and Tk 20,000 for buying books and other things.
The loan will have to be repaid within five years of their service life with no interest.
Bank sources said the students who will be selected for the loan will be able to repay the loan either by installments or in one go.
The loan recipients will have to pay at least Tk 3000 monthly if they opt for installments during their service life.
Bank sources said only those students who are poor and meritorious will be eligible for the loan.
"We will evaluate the applicant's economic condition and his or her merit for the loan," Shah Mohammed Abdul Bari said.
Secondary School Certificate and Higher Secondary Certificate will have to be kept as security for the loan.
Apart from this, a recommendation from the head of the department concerned will also be required for the loan.
And certificates to be issued by the university concerned will be kept in the bank up to repayment of the loan.
"We will have agreement with registrars of the respective educational
organisations so that they send certificates after completion of the studies of the students who took loan from the bank," said one senior official of the bank.