The decision follows President Dr Mohamed Muizzu’s announcement that student loan fees would be removed and to comply with Shariah principles.
Ministry of Higher Education has eliminated administrative fees on student loans to ensure compliance with Islamic Shariah principles.
The decision follows President Dr Mohamed Muizzu’s announcement that student loan fees would be removed and to comply with Shariah principles.
In a statement, the ministry said that the 1 percent administrative fee on loans issued by the Ministry of Higher Education, Labour, and Skills Development will be removed. This means borrowers will now only be required to repay the principal amount without any additional charges.
For those with existing loans, the administrative fees previously deducted will be adjusted, reducing their outstanding loan balances accordingly.
President Muizzu reiterated his commitment to Islamic financial practices, stating that all higher education and training loans, both domestic and international, will now adhere to Shariah principles.
Higher Education Ministry said that this decision reflects the Maldives' status as a 100 percent Muslim country and underscores the government’s commitment to conducting financial matters within the framework of Islamic Shariah.
Previously, administrative fees on student loans were as high as 5 percent, before being reduced to 3 percent and later to 1 percent under former President Ibrahim Mohamed Solih's administration.
Meanwhile, concerns have been raised over delays in opening applications for higher education loans. Higher Education Minister Dr. Ali Haider recently told Mihaaru News that the loan application process is in progress.
During an MNU graduation ceremony
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