Ministry aligns student loans with Islamic guidelines
The ministry stated that necessary steps and preparations have been initiated to implement the changes
The Ministry of Higher Education has announced immediate changes to government loans for higher education in the Maldives and abroad, aligning them with Islamic principles as directed by President Mohamed Muizzu.
The President instructed authorities on Thursday to ensure that government-issued loans for education and training comply with Islamic guidelines.
Following this directive, the ministry stated that necessary steps and preparations have been initiated to implement the changes. Loans already issued and future disbursements will be adjusted accordingly.
The ministry outlined the following changes:
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Future loan repayments will only include the principal amount, with no additional charges.
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Administrative fees will no longer be applied to repaid student loans.
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A 1% deduction will not be made as administrative fee of previously issued student loans, and the repayment amounts will be adjusted.
In a statement, the ministry welcomed the President’s decision, stating that it reflects the government’s commitment to ensuring financial transactions adhere to Islamic Shariah.
