Bank of Maldives (BML) has announced a further reduction in the interest rate of its student loan schemes; Kiyavaa Loan and BML Islamic Education Financing.
According to BML, the bank’s board of directors agreed on Wednesday to reduce the rate from 5 percent to 2.5 percent, and the equity from 25 percent to 10 percent.
The new rate will be effective from February 1, and will be applicable for both new and existing facilities.
The bank added that with an additional reduction in equity from 25 percent to 10 percent, its Kiyavaa Loan and Education Financing will now be available to cover up to 90 percent of the cost of education, including tuition fees and other living costs.
With the new lower interest and financing rate, the repayment period for existing customers will be automatically reduced.
BML’s CEO and Managing Director, Karl Stumke said the bank was delighted to announce a further reduction in its student financing rates.
“Our rate reduction last year was a positive change that allowed students easier access to funding for further education anywhere in the world. With today’s announcement, we look forward to providing this chance to an even bigger cohort of students,” he said.
The bank said that further details, as well as the option to pay a lower monthly installment, will be communicated to all existing Kiyavaa Loan and Education Financing customers.
The BML Kiyavaa Loan and Education Financing, with a repayment period of 10 years, is available for students to cover the cost of further education anywhere in the world.