Eastern Bank Ltd.

Kalkini, Madaripur Branch

Kalkini College Road, Kalkini, Madaripur

Phone: 01636513902

Website: www.ebl.com.bd Email: eblkalkini@gmail.com

Date: 7 June 2021

A report on the necessity of study loan for college and university students with

financial needs in Kalkini

Executive Summary

Based on market evaluation by the research team, this report exhibits the necessity of one-time
study loan in this pandemic situation for college and university students of Kalkini. Two separate
questionnaires for the students and their guardians have been used to collect data which show
that most of the college and university students are interested in taking one-time study loan if it
is available with low interest rate. Therefore, launching one-time study loan for college and
university students with low interest rate, easy repayment system through several installments
and voluntary internship will be a time appropriate decision.
Introduction

Eastern Bank Limited is a private commercial bank in Bangladesh which provides different
kinds of loans. Up to this time, the study loan has covered only study abroad programs.
However, due to Covid-19 situation, the college and university students are also in need of one-
time study loan as their parents’ and their own income has suddenly decreased. This report
focuses on the demands of one-time study loan for college and university students of Kalkini in
2021.

Methodology

The research team has visited the homes of the students, located in different areas of Kalkini,
from April 10 to May 30 in 2021. They have collected information from 300 students and their
guardians by using separate questionnaires (see appendix for the questionnaires). are attached to
the appendix section.

Findings

1) 70% of the students are in need of one-time study loan

2) 45% of the students and their guardians are willing to take 25,000 – 35,000 BDT as one-
time study loan, 35% of them are interested in taking 36,000 – 40,000 BDT and 20% of
them are eager to take above 40,000 BDT
3) 40% of the students’ family and individual income per month is below 15,000 BDT, 30%
of theirs is 15,000 – 20,000 BDT, 20% of theirs is 20,000 – 25,000 BDT and 10% of
theirs is above 25,000 BDT
4) 68% of the students and their guardians showed willingness to take study loan if the
interest rate is below 2%
 5) 65% of the students and their guardians assured that they would be able to repay the loan
within 24 months if there is option of easy repayment with several installments
6) 30% of the students agreed to repay the loan through their voluntary internship in Eastern
Bank Limited.

Conclusion

During this pandemic in 2021, most of the students and their guardians are interested in taking
study loan for bearing the educational expenses. However, the students are not able to take study
loan from other banks as they are not eligible for it due to their families’ low income. Moreover,
they are unwilling to repay the loan with high interest rate. In this situation, if we introduce
one-time study loan with necessary conveniences for students, we expect that the students and
their guardians will be willing to avail it.

Recommendations

1) Launching one-time study loan with 1.5% interest rate for the college and university
students
2) Keeping option for taking loans between 25,000 and 40,000 BDT.

3) Offering the students and their guardians to repay the loan within 24 months through
10 - 12 installments.
4) Keeping an alternative for the students, whose family income is below 15,000 BDT, to
repay the loan through voluntary internship in Eastern Bank Limited
Rabeya

Jasmine Rabeya

Junior Officer

Appendix 1
Questionnaire for the students

1) If EBL offers a one-time study loan, are you interested to take it?
i) Yes ii) No

2) How much money do you need to take as loan?

i) 25,000 – 35,000 BDT
ii) 35,000 – 40,000 BDT
iii) Above 40,000 BDT

3) If the interest rate is below 2%, will you or your family be able to repay the loan?
i) Yes ii) No

4) How many installments do you or your family need to repay the loan?
i) 5–8
ii) 8 – 10
iii) 10 – 12
iv) 12 – 14

5) How many months do you or your family need to repay the loan?
i) 18 months
ii) 24 months
iii) 30 months
6) Do you have any individual income?
i) Yes ii) No

7) If yes, how much do you earn per month?

i) Below 2000 BDT
ii) 2000 – 4000 BDT
iii) 4000 – 6000 BDT
iv) Above 6000 BDT

8) How many earning members are there in your family?

i) 1 ii) 2 iii) 3 iv) 4

9) What does your family income look like (Monthly)? Please select from the following
i) Below 15000 BDT
ii) 15000 – 20000 BDT
iii) 20000 – 25000 BDT
iv) Above 25000 BDT

10) Family Income sources-

i) Farming/Cultivation
ii) Non-govt. Service
iii) Government Service
iv) Daily basis Income
v) Self Employment
 vi) Others

Appendix 2

1) Do you think your son/daughter/brother/sister needs loan to continue his/her study?

i) Yes ii) No
2) How much money do you think your son/daughter/brother/sister should take as study
loan?
i) 25,000 – 35,000 BDT
ii) 35,000 – 40,000 BDT
iii) Above 40,000 BDT

3) If the interest rate is below 2%, will you be able to repay the loan?
i) Yes ii) No

4) What does your family income look like (Monthly)? Please select from the following
i) Below 15000 BDT
ii) 15000 – 20000 BDT
iii) 20000 – 25000 BDT
iv) Above 25000 BDT

5) Family Income sources-

i) Farming/Cultivation
ii) Non-govt. Service
iii) Government Service
iv) Daily basis Income
 v) Self Employment
vi) Others

6) How many installments do you need to repay the loan?

i) 5–8
ii) 8 – 10
iii) 10 – 12
iv) 12 – 14

7) How many months do you need to repay the loan?

i) 20 months
ii) 25 months
iii) 30 months
iv) 40 months