Everything You Should Know About Personal Loan in Bangladesh-Read Before You Apply

Sometimes we fail to save enough money for an emergency or any other reason. This sudden cash requirement can be managed through personal loan. Almost all the banks in our country is offering personal loan. But the eligility criteria is not same for all the banks. Basically you can take a loan for your upcoming wedding , purchasing a gadget or even in case of any emergency medical need.

The loan procedure was very tedious and required a lot of paper work. But now the method of taking personal loan is quite simple. Even some of the banks offering online application for taking loans. Before we dive into the main part let's have some knowledge of personal loan- Whether you should apply for this or not? 

What is a Personal Loan? 

Personal loan is short term unsecured loan that is offered by banks or financial institutions for any legal purpose that is expressed by the loan applicant. The term unsecured here means bank will not ask any collateral security from the applicant. Genarally personal loans tenure starts from 1 year to 5 year. It can be a great help in case of real need.

Will be beneficial ?

Debt is always a burden unless it's a mortgage loan like home loan. However, if you really intend to apply for a personal loan and you need a real one you can consider the following points:-

1.Short processing time : Unlike business loans personal loan processing time is comparatively short.

2. Higher amount: Even though it's a personal loan, depending on your eligibility and credit worthiness you can get up to 20.00 lac from various banks.

3. Competitive interest rate: Presently a lot of banks are offering personal loans. As a result you can get a loan at competitive interest rate ranging from 7.00% p.a. to 9.00% p.a.

4. Basic eligibility: The eligibility of personal loan is not so hard. It's very simple requires less paper works. 

5. Collateral Free: None of the banks will ask for any sort of collateral security in case of personal loan. 

How to apply for a personal loan?

As I said previously personal loan application procedure is quite simple. I am going to describe the procedure using several steps.

Step-1: Information Stage 

In this stage you have to gather all the information regarding a suitable personal loan. You can check the websites of the banks or can go the nearby banks at your locality. Interest rate and processing fees could be your prime consideration in this stage.

Step-2: Eligibility Check

After gathering all the information now you know what do the banks require. You can easily check which banks will finance you which not. 

Step-3: Prepapring the Documents 

You need to have the following documents if you intend to apply for personal loan:-

-National Identiy Card (NID)


-3 Copies of recent passport size photograph 

-Bank statement of last six months

-Employee Identity card/letter of introduction/ salary certificate/ pay slip etc in case of job holder

-Trade license in case of businessman 

-Personal guarantee of eligible persons

-Any other documents as required by the banks.

Step-4: Availing the loan

If the bank is happy with your documents and other information it may sanction you the loan. If the bank sanctions you the loan you have to submit them several other documents e.g. accepted copy of sanction letter, copy of cheque , set of charge documents etc. In this remember to photocopy all the required documents for your future reference. 

Every bank has their own specific criteria for loan processing . We have just discussed common procedure of getting a personal loan. You can use the content as reference or gudiline while you intend to apply for personal loan. You can use the following links directly to know more from the banks website.

Duthc Bangla Bank Ltd.

The City Bank Ltd.

Standard Chartered Bank 

BRAC Bank Ltd. 

Modhumoti Bank Ltd.

Eastern Bank Ltd.

Prime Bank Ltd.

Mercantile Bank Ltd.

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