BML introduces flexible Islamic education financing for students

The Bank of Maldives (BML) is offering Islamic education financing through both secured and unsecured facilities to help Maldivians meet the cost of higher education and professional studies.

Under the secured Islamic Education Financing scheme, customers can obtain financing of up to 90 percent of education expenses, including tuition fees and living costs, at a profit rate of 2.5 percent per annum. Repayment can be made over a period of up to 10 years after completing studies.

Students who take the financing in their own name are also eligible for an extended grace period covering the full duration of their studies. Those opting for the extended grace period are required to have Family Takaful (life insurance) coverage throughout the financing tenure. The property offered as security must be valued at a minimum of 150 percent of the financing amount.

The secured facility is available for individual or joint applicants. Applicants must have sufficient monthly income to cover repayments, with income routed to any bank account for the previous six months and the most recent month’s income credited to a BML account. Salary, business and rental income are all considered, while existing credit facilities must have a satisfactory repayment record.

BML also offers an unsecured Islamic Education Financing facility for recognised professional qualifications. The financing covers up to 100 percent of eligible education costs, including course fees, travel expenses and related living costs, subject to the customer’s eligible unsecured exposure.

The unsecured facility carries a profit rate of 10 percent per annum, with a financing period of up to five years. Customers can also benefit from an extended grace period, while no equity contribution, application fee or processing fee is required. Financing is provided in US dollars.

To qualify, applicants must be Maldivian citizens aged between 18 and 70, with the financing maturing before the age of 75. Applicants must demonstrate sufficient income to meet monthly repayments, with income credited to a BML account for the past 12 months. Income from salaries, rental properties and businesses is accepted, provided existing credit facilities have been repaid satisfactorily.

Applications for the unsecured facility can be submitted at BML branches, while applications for the secured facility can be made through the Message Centre on BML Internet Banking or the Mobile Banking App.