Bank of Maldives (BML) today introduced a special collateral-free education loan disbursed directly in US dollars. This new addition to the bank's loan products is specifically designed to provide national scholarship students with access to education financing without requiring collateral, stated BML.
Explaining the bank's decision, BML CEO and Managing Director Mohamed Shareef highlighted that the initiative aims to assist students facing financial hurdles in pursuing quality education. Under this new service, loans will be disbursed in US dollars, either as an upfront tuition fee for a course or as a lump sum for the entire duration of a course. Shareef further noted that by offering collateral-free loans, BML is opening opportunities that were previously unavailable through government loan schemes.
In unveiling this loan product, Shareef emphasized that a major challenge faced by students and their guardians is the lack of collateral. This often led to students from low-income families without collateral being excluded from government loan schemes.
Mohamed Shaiq, Head of BML's Tax and Social Development Division, stated that offering this collateral-free education loan would significantly increase the number of families who can access such opportunities. He added that BML introduced this collateral-free, US Dollar-denominated education loan to address the issue of students striving to enroll in higher education from low-income families without collateral who were previously unable to access government loan schemes.
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