Minister of Islamic Affairs Dr. Mohamed Shaheem Ali Saeed has lauded President Dr. Mohamed Muizzu’s decision to issue student loans according to Islamic Sharia principles.

The Ministry of Higher Education currently offers loans to support higher education and training both within the Maldives and abroad. However, under the new policy introduced by President Muizzu, administrative fees attached to these loans will be reduced, and no additional charges will be imposed beyond the principal amount.

In a statement made Thursday night, Minister Shaheem expressed his gratitude for the President’s decision, emphasizing that it addresses a long-standing concern. He noted that the issue had been unresolved for some time, and the resolution was welcomed.

The President’s decision also includes provisions for previous loan amounts to be adjusted by deducting the administrative fees from any outstanding balances. This move is expected to provide financial relief to students who have already taken out loans and is viewed as a significant step towards ensuring that the loan system aligns with Islamic financial principles.

The reform is anticipated to have a positive impact on many students and borrowers, ensuring fairness and greater accessibility to higher education opportunities.