The Bank of Maldives (BML) has announced their plans to reduce the student loan interest rates to 5 percent. This announcement was made during a ceremony hosted to celebrate the 40-year anniversary, in an effort to help make education more accessible.
The BML Chairperson, Yooshau Saeed in his address, spoke on the importance of bringing positive changes to the Bank’s products and services. At the event, he announced the reduction in interest rate of the Bank’s student loan. “BML Kiyavaa Loan is an opportunity for students to further their studies and I am pleased to share that we will be reducing its interest rate from 9% to 5% with effect from 1st February. This positive change will be extended to all Kiyavaa Loans, including all existing loans.”
Prior to this announcement, the bank gave out loans that covered 75 percent of the cost of education including tuition fees and other living costs with an interest rate of up to 9 percent. Following this announcement, BML has announced that by February 2023, students would be able to take student loans with only a 5 percent interest rate, making education as well as the repayment process more convenient and affordable for students.
BML has made this announcement following complaints from students regarding the high-interest rates, making the full repayment extremely expensive. From February 2023 onwards, all student loans taken from BML in the past as well as in the future will carry an interest rate of 5 percent.
The BML loan is eligible for students from all over the Maldives. While students can apply through the BML portal in order to make an appointment in order to apply for the student loan, students in local islands can also apply online in order to get a student loan.