President Dr Mohamed Muizzu has announced that all higher education and training loans, both domestic and international, will now comply with Shariah principles. The decision was shared via a post on his official X account on Thursday.
As part of this initiative, the Maldivian Government will take significant steps to ensure fairness in loan structures. The existing 1 percent administrative fee on loans issued by the Ministry of Higher Education, Labour, and Skills Development will be removed. This means that students will only be required to repay the principal amount without any additional charges.
Additionally, previous borrowers will benefit from this policy change, as their outstanding balances will be adjusted to deduct the previously charged administrative fee.
