The Bank of Maldives (BML) has reduced its student Kiyavaa Loan and BML Islamic Education Financing rates to 2.5 percent, aiming to alleviate the financial burden of higher education for students, the bank announced on Sunday. This decision will be implemented starting 1 February 2024, the bank said in a statement.

The revised rate, applicable to new and existing facilities, signifies a pivotal shift in the bank’s approach towards education financing. The BML Kiyavaa Loan and Education Financing will now cover up to 90 percent of the total education cost, including tuition fees and other living expenses, as per the bank. The interest and financing rate reduction will automatically curtail the repayment period for existing customers, thereby providing additional financial relief.

“Our rate reduction last year was a positive change that allowed students easier access to funding for further education anywhere in the world,” said Karl Stumke, CEO and Managing Director of BML. “With today’s announcement, we look forward to providing this chance to an even bigger cohort of students.” 

Existing Kiyavaa Loan and Education Financing customers will be provided with additional details, including the option to opt for a lower monthly installment. The BML Kiyavaa Loan and Education Financing, offering a repayment period of 10 years, is available for students to finance the cost of further education globally.