President Dr. Mohamed Muizzu has directed authorities to ensure that all higher education and training loans, both domestic and international, comply with Shariah principles. The announcement was made on Thursday via a post on his official X account.
As part of this initiative, the government will remove the existing 1 percent administrative fee on loans issued by the Ministry of Higher Education, Labour, and Skills Development. This ensures that borrowers only repay the principal amount without any additional charges.
Additionally, loan amounts for previous borrowers will be adjusted, with the administrative fee deducted from their outstanding balances.
The move aligns with President Muizzu’s broader policies to implement Shariah-compliant financial practices across government sectors.
As part of this initiative, the government will remove the existing 1 percent administrative fee on loans issued by the Ministry of Higher Education, Labour, and Skills Development. This ensures that borrowers only repay the principal amount without any additional charges.
Additionally, loan amounts for previous borrowers will be adjusted, with the administrative fee deducted from their outstanding balances.
The move aligns with President Muizzu’s broader policies to implement Shariah-compliant financial practices across government sectors.
