How can I get a loan against salary from a Bank in Bangladesh?

People are constantly facing unpredictable events in different stages of life. Sometimes to meet up such events quick funding support is vital. Funding from relatives and friends sometimes creates hesitations or becomes the reason for breaking relations. So, Bank or financial institution is the right choice for taking emergency funds. The bank is a reliable, trustworthy and also financial advisor for meeting up fund crises. But it is a matter of confusion as to which documents are required for applying for a personal loan/Loan Against Salary, is there any property needed for personal loan, terms and conditions for personal loan/Loan Against Salary etc. here I’m trying to help you about this matter.

Purpose of Loan against Salary:

Some banks are allowing any purpose for a personal loan. But most of the banks preferred the following purpose for lending;

a) Purchase of consumer durables.
b) Purchase of Personal Computers/Electronics.
c) Home improvement/renovation.
d) Meeting financial liabilities.
e) Marriage of self or dependents.
f) Education.
g) CNG Conversion/Vehicle Repair.
h) Domestic or foreign travel Expenses.
i) Medical treatment for self/family members.
j) Other needs.

Read Also: What are the documents required for SME loan?

Who Can Apply?

Any Bangladeshi Nationalists can apply for a personal loan whose age is;

a)       Minimum 20 years. (Minimum age may vary from bank to bank)

b)      Maximum 65 years or Up to retirement age (whichever is Lower) at the end of Loan duration.

Minimum Gross Monthly Income: (May vary from bank to bank)

1. Government Employees: Minimum BDT 18,000 per Month.
2. Salaried Executives: Minimum BDT 25,000 per Month.
3. Professionals/Businessperson: Minimum BDT 30,000 per Month.

Read Also: What documents do I need to apply for a credit card in Bangladesh?

Length of experience: (May vary from bank to bank)

1. Salaried Executive: Minimum 1-year experience, 6 months with present employers and must be a permanent & confirmed employee.
2. elf-employed Professionals: Minimum 1-year practice in the respective profession i.e. Doctors, Architects, Engineers, Chartered Accountant and Certified Consultant, IT Professionals etc.
3. Businessperson: Minimum 2 years of involvement in the same line of business.

Loan Limit:

Loan limit calculated by banks as 10 to 20 times of gross monthly income from 50,000/- to 20,00,000/- whichever is lower. Different banks use several credit metrics to calculate loan limit.

Tenure of the loan:

From 12 months to 60 Month depending on the customer demand and eligibility.

What documentation do I need to apply for a personal loan/Loan Against Salary?
1) One personal guarantee is required along with the spouse guarantor.
2) National ID Card/ Passport/Driving license of the applicant, Guarantor and Spouse Guarantor. (Passport is not allowed for CIB)
3) Recent color photograph of the applicant, Guarantor and Spouse Guarantor.
4) Business card and office ID card.
5) Copy of TIN related documents. Some banks are allowing up to 5 lacs without TIN certificate.
6) Trade license/MOA for Businessmen.
7) Drug license for the Medicine business.8) In the case of salaried executives;

• Letter of appointment.
• Letter of joining.
• Letter of Confirmation/Permanency. (If any)
• Salary Certificate. (Recent)
• MPO for Primary Teacher.

9) Professional Certificate for Professionals.
10) Bank Statement of last 6 months. (If he/she availed loan from other bank loan statement from the beginning to up to date along with loan sanction advice.)
11) Copy of house ownership and in case of rent house, rent agreement from landlord.
12) Utility bill copy for the proof of address.

Loan Repayment:

Loan repayments are collected from the customer in the form of equal monthly installments (EMI) at a fixed interest rate which are decided by the banks for the period which the customer has chosen. Your monthly installment can be automatically debited from your personal account maintained with the respective bank. Some banks collected an equal number of cheques as EMI for monthly repayment.

Interest, Fees and Charges:

Interest;

Interest rate fixed by the respective bank which is controlled by Bangladesh Bank. The present rate of interest fixed by the BB is not more than 09.00%. If one fails to pay monthly EMI he/she has to pay an additional amount along with fixed EMI on a daily basis and is calculated on the basis of 360 day year. Some banks have accrued additional charges in the name of late payment fees.

Fees and Charges applied by the Bank in the form of;

1) CIB Inquiry fee.
2) Loan Application Fee.
3) Loan Processing Fee.
4) Contact Point Verification fee.
5) Charges Document Fee.
6) Legal Opinion Fee.
7) Other as banks discretion.

For more details, one can go through the details about banks policies from their respective bank’s official websites. And one can contact the respective bank official for loan details. All banks are offering almost the same feature for a personal loan just which you prefer or suitable for you.

FAQs