Personal Loan Checklist in Bangladesh: 20 Things to Check Before, During and After You Borrow

A personal loan can solve a real problem: a medical bill, a wedding, a child’s admission, a family emergency. It can also turn into five years of stress. The difference usually comes down to a handful of questions asked before signing. This checklist walks through all of them, in order.

Banks in Bangladesh have made personal loans easier to get in recent years. In May 2026, Bangladesh Bank doubled the limit on unsecured personal loans from Tk 5 lakh to Tk 10 lakh, and on secured personal loans from Tk 20 lakh to Tk 40 lakh, according to The Financial Express. Easier access is good news when you truly need money. It also makes it easier to borrow more than you can comfortably repay.

Use this checklist in four stages: before you apply, checking eligibility and documents, comparing and signing, and after the money arrives. For a deeper look at fees and the interest rate that really matters, see our companion guide on how to read the fine print on a personal loan.

The 2026 rules in brief

Rule	What it says
Unsecured personal loan limit	Up to Tk 10 lakh (raised from Tk 5 lakh in May 2026)
Secured personal loan limit	Up to Tk 40 lakh (raised from Tk 20 lakh)
Loans against FDR or similar liquid security	Can go higher, depending on the security’s value
Maximum tenure	Five years
Debt burden ratio	Set by each bank; commonly 40% to 70% of net monthly income for all EMIs together

Based on BRPD Circular Letter No. 15 of May 2026, as described in The Financial Express. Individual banks set their own eligibility within these limits.

Stage one: before you apply

1. Do you really need a loan?

Be honest. A medical emergency or an essential admission fee is a strong reason. A new phone, a holiday or a bigger wedding than you planned is not. If the purchase can wait three to six months while you save, waiting is almost always cheaper.

2. Is there a cheaper option?

Before a personal loan, check:

• A loan against your own FDR or DPS, which usually costs much less and does not require breaking your savings.
• A salary advance or loan from your employer, often interest-free or very cheap.
• Provident fund loan, if your workplace offers one.
• 0% EMI at a partner shop, for specific purchases, if there is no hidden processing fee.

And avoid the most expensive options: a credit card balance or a cash advance on a card. Our article on the real cost of a credit card shows why.

3. Exactly how much do you need?

Write down the actual amount, with quotes or bills where possible. Banks often offer more than you ask for. Borrowing an extra Tk 1 lakh “just in case” costs thousands in interest.

4. Can you afford the EMI?

This is the most important check. Here is what a Tk 5 lakh loan costs at common interest rates:

Interest rate	3 years: EMI (Tk)	3 years: total interest (Tk)	5 years: EMI (Tk)	5 years: total interest (Tk)
12%	16,607	97,858	11,122	1,67,333
14%	17,089	1,15,197	11,634	1,98,048
16%	17,579	1,32,827	12,159	2,29,542

Our calculation, standard reducing-balance EMI. Fees are extra.

Notice the trade-off. A five-year loan has a lower EMI but almost double the total interest of a three-year one. Choose the shortest tenure whose EMI you can comfortably pay.

A simple rule many advisers use: keep all your loan EMIs together below about one-third of your take-home pay. Banks may allow more, with debt burden limits commonly between 40% and 70% depending on the bank and salary, but just because the bank will lend does not mean your budget can handle it.

5. Do you have a buffer?

Before borrowing, make sure you have at least two or three months of EMI saved separately. If your salary is delayed or you fall ill, that buffer keeps you from missing payments.

6. Is your credit record clean?

Every bank checks your record with Bangladesh Bank’s Credit Information Bureau (CIB). Old unpaid credit card dues, a loan you guaranteed for someone else, or a missed instalment can lead to rejection. If you have any doubt, settle old dues and ask the lender for a clearance letter before applying.

Stage two: eligibility and documents

7. Check the basic eligibility

Each bank sets its own rules. Two published examples show the range:

Bank	Who can apply	Amount	Tenure
Standard Chartered	Salaried from age 21; minimum net income Tk 26,000 (salary with SC) or Tk 35,000 (salary elsewhere); business people from age 25 with Tk 55,000	Tk 50,000 to Tk 20 lakh	12 to 60 months
Sonali Bank	Permanent employees of listed institutions, generally with at least 5 years of service	Tk 1 lakh to Tk 20 lakh	12 to 60 months

From each bank’s published personal loan page. Amounts above the unsecured limit generally need security or guarantees.

8. Gather your documents

For a salaried person, most banks ask for something like this:

• National ID card (copy)
• Passport-size photos
• e-TIN certificate, and proof of tax return submission if you are a taxpayer
• Salary certificate or latest payslip
• Bank statement showing salary credits, usually for the last 3 to 6 months
• Office ID card copy
• Cheque leaves for repayment (some banks)
• Guarantor’s documents, if a guarantee is required

Business people and self-employed professionals usually also need a trade licence, proof of years in business, and business bank statements.

9. Think carefully about guarantors

Many banks require a personal guarantor, especially for larger amounts. Standard Chartered, for example, asks for a personal guarantee above Tk 5 lakh. Remember that a guarantor is legally responsible if you do not pay, and the loan appears on their credit record too. Choose someone who understands this, and do not pressure anyone into it.

The same applies in reverse: think twice before guaranteeing someone else’s loan. If they default, it can block your own future borrowing.

Stage three: compare and sign

10. Get offers from at least three lenders

Start with the bank where your salary goes, which often offers better terms. Then compare with two others. Ask each for the same loan amount and tenure, so the offers are comparable.

11. Compare the total cost, not the rate alone

Ask each lender to write down:

• The interest rate, and whether it is fixed or can change
• The monthly EMI
• The total amount you will repay over the full term
• Every fee: processing, documentation, stamp, CIB, insurance

The loan with the lowest total repayment, fees included, is the cheapest, even if its headline rate is not the lowest.

12. Ask whether the rate can change

Many loans have variable rates linked to market benchmarks. If rates rise, your EMI or tenure can increase. Ask how often the rate can change and how you will be told.

13. Check the early settlement terms

If you get a bonus or extra money, can you pay off part or all of the loan early? What is the fee? Low early settlement charges give you freedom to clear the debt faster and save interest.

14. Understand the late payment penalty

Ask what happens if an EMI is late by a few days, and after how long the bank reports it to the CIB. A single late payment can affect your credit record for years.

15. Say no to unwanted add-ons

Some lenders bundle insurance or other products with the loan. Ask whether they are compulsory. If they are optional and you do not need them, decline.

16. Read the sanction letter before signing

Check that the amount, rate, tenure, EMI, fees and repayment date match what you were told. If anything is different, ask before you sign. Never sign blank forms, and keep a copy of everything you sign.

Stage four: after the money arrives

17. Use the money only for its purpose

A loan taken for a medical bill should pay the medical bill. Extra money spent elsewhere becomes debt with nothing to show for it.

18. Set up automatic EMI payment

Ask the bank to debit the EMI from your salary account automatically, a few days after salary day. Keep a small balance above the EMI so a slightly late salary does not cause a missed payment.

19. Prepay when you can

If early settlement charges are low, put bonuses or windfalls toward the loan. Paying off principal early cuts the total interest sharply, especially in the first years.

20. Close it properly

When the last EMI is paid, ask for a loan closure certificate or no-objection letter, and get back any cheques or documents you deposited. Check later that the loan shows as closed in your credit record.

If you are struggling to repay

Life changes. Jobs are lost, salaries are cut, illness happens. If you think you will miss payments:

• Talk to the bank before you miss an EMI, not after. Banks are often more flexible early.
• Ask about rescheduling, a longer tenure or a short break, and get any change in writing.
• Do not take a new loan to pay an old one unless the new loan is clearly cheaper and you have a plan to repay it.
• Cut spending hard for a few months. Our guide on how to save money in Dhaka has practical ideas.

Bangladesh Bank’s 2026 card policy prohibits harassment by banks and recovery agents for card debts. If you face threats or abuse from any lender, you can complain to the bank and to Bangladesh Bank’s customer services.

The checklist at a glance

Stage	Check
Before applying	1. Real need · 2. Cheaper options · 3. Exact amount · 4. Affordable EMI · 5. Buffer saved · 6. Clean CIB
Eligibility	7. Bank’s criteria · 8. Documents ready · 9. Guarantor understands the risk
Compare and sign	10. Three offers · 11. Total cost · 12. Fixed or variable rate · 13. Early settlement · 14. Late penalties · 15. No unwanted add-ons · 16. Read the sanction letter
After disbursement	17. Use for purpose · 18. Auto-debit EMI · 19. Prepay when possible · 20. Closure certificate

This article is general information, not financial or legal advice. Loan rules, rates and fees differ by bank and change over time. Read your loan documents carefully and ask the bank to explain anything unclear before signing.

Frequently asked questions

What is the maximum personal loan in Bangladesh?

Under the May 2026 rules, up to Tk 10 lakh without security and up to Tk 40 lakh with security, according to The Financial Express. Loans against FDRs can go higher depending on the deposit’s value.

What documents do I need for a personal loan?

Usually NID, photos, e-TIN, salary certificate or payslip, recent bank statements showing salary, office ID, and guarantor documents if required.

What is the minimum salary for a personal loan?

It varies by bank. Standard Chartered, for example, lists Tk 26,000 net income for its payroll clients and Tk 35,000 for salary held elsewhere.

How long can a personal loan run?

Up to five years. A shorter tenure means a higher EMI but much less total interest.

What is a debt burden ratio?

The share of your monthly income that goes to all loan EMIs together. Banks commonly cap it somewhere between 40% and 70%, but keeping it near one-third is safer for your budget.

Key words explained

Term	What it means
EMI	Equated Monthly Instalment, the fixed monthly loan payment.
Tenure	How long you have to repay the loan.
Unsecured loan	A loan with no collateral, based on your income and record.
Secured loan	A loan backed by an asset or deposit the bank can claim.
CIB	Credit Information Bureau, Bangladesh Bank’s record of borrowers.
Debt burden ratio	Total EMIs as a share of your monthly income.
Sanction letter	The bank’s formal offer with all loan terms.
Early settlement	Paying off the loan before the end of its term.

How we reported this

The loan limits and tenure rules come from The Financial Express’s description of Bangladesh Bank’s May 2026 circular; readers should check the circular itself for the exact text. Eligibility and document examples come from Standard Chartered Bangladesh’s and Sonali Bank’s published personal loan pages. The EMI table is our own calculation. We have no arrangement with any bank mentioned.