Minister of Islamic Affairs Dr Mohamed Shaheem Ali Saeed and the head Imam of the Islamic Centre, Sheikh Mohamed Latheef, have expressed their strong support for President Dr Mohamed Muizzu’s decision to make student loans Sharia-compliant.

They have praised the move as a significant step towards aligning national financial policies with Islamic principles and addressing a long-standing concern within the education sector.

Announcing the initiative in a post on X last night, President Dr Muizzu confirmed that he had directed the relevant authorities to restructure the existing loan system to align with Sharia law. As part of this directive, the Government will eliminate the 1 per cent administrative fee previously imposed on student loans. Additionally, he has called for a reassessment of past loan agreements to alleviate financial burdens on students by deducting administrative fees from the payment of the borrowers.

Additionally, the President has instructed that no extra charges be imposed beyond the originally sanctioned loan amount, ensuring a fairer and more ethical financing system.

The policy shift has been widely welcomed, with Minister Dr Mohamed Shaheem Ali Saeed emphasising its importance in strengthening Islamic values within the national financial framework and expressing his gratitude to the president.

Head Imam Sheikh Mohamed Latheef described the reform as a positive and much-needed decision. He also offered prayers for the president’s continued success in implementing further reforms.

Beyond religious leaders, the initiative has garnered strong support from students, academics, and the wider public. Many view it as a progressive step towards creating a more equitable financial system for higher education.