Following the directive by President Dr Mohamed Muizzu, the government has announced that the interest on both existing and future loans along with the administrative fee has been waived.
President Dr Muizzu late Thursday directed the relevant authorities to ensure that all higher education and training loans—both domestic and international—comply with Shariah principles.
Welcoming the decision by the President, the Ministry of Higher Education, Labour, and Skills Development in a statement said efforts are now underway for the immediate implementation of the directive.
The Ministry said the decision shows the President's commitment to maintain such financial transactions within the principles of Islamic Shariah.
According to the Ministry, the existing one percent administrative fee on loans will now be removed along with interest ensuring that no additional charges are imposed beyond the principal amount.
The loan amounts of existing student loans will also be adjusted by deducting the administrative fee and interest amounts from their outstanding balances, the Ministry added.