President Dr Mohamed Muizzu has directed the relevant authorities to ensure that all higher education and training loans—both domestic and international—comply with Shariah principles. He made the announcement on Thursday via a post on his official X account.
As part of this initiative, the Government will:
- Remove the existing 1 per cent administrative fee on loans issued by the Ministry of Higher Education, Labour, and Skills Development, ensuring that no additional charges are imposed beyond the principal amount.
- Adjust loan amounts for previous borrowers by deducting the administrative fee from their outstanding balances.