Gov’t begins work to make student loans Shariah-compliant
With the president's decision, changes will be made to loans given as well as loans to be given for higher education and training in the Maldives as well as abroad
Students at an MNU graduation ceremony
The Ministry of Higher Education, Labour and Skills Development has revealed that work has commenced to make student loans Shariah-compliant.
President Dr. Mohamed Muizzu has disclosed that it has been decided not to charge any additional money from students beyond the amount disbursed as loans, in order to make loans given to students studying in the Maldives and abroad compliant with Islamic principles.
Taking to social media platform ‘X’ on Thursday night, the president announced that work is underway to make loans given and to be given for higher education and training in the Maldives and abroad "Shariah-compliant" loans that adhere to Islamic principles.
In his post, Muizzu shared the changes that have been decided to be implemented.
The president said that it has been decided to make loans given for higher education and training in the Maldives and abroad Shariah-compliant.
As such, he said it has been decided to completely remove the one percent administrative fee that was being charged along with loans given by the Ministry of Higher Education, Labor and Skills Development for education and training in the Maldives and abroad, in order to make them Shariah-compliant loans.
Further, the president has said that it has been decided not to charge any additional amount beyond the money disbursed as loans. He also said that for those who have previously taken loans, the administrative fee will be deducted from the amount they have to pay, and their loan amounts will be readjusted.
In a statement released by the Ministry of Higher Education regarding this, it was stated that they welcome the president's decision to make loans given as well as the loans to be given for higher education and training abroad Shariah-compliant. They also noted that work is being done to implement the president's decision immediately.
In addition to this, the ministry has revealed that all necessary preparations to bring these changes are underway presently. The ministry further stated that the decision mirrors the government's prioritization of keeping financial matters within the limits and measures set by Islamic Shariah in the Maldives, a100 percent Islamic nation.
The ministry went on to reveal that with the president's decision, changes will be made to loans given as well as loans to be given for higher education and training in the Maldives as well as abroad.
