An education-focused Malta Development Bank loan scheme focused has allowed around 430 students to finance their studies over the past four years.

Intermediated by Bank of Valletta through its BOV Studies Plus+ offer, the MBD-backed Further Studies Made Affordable plus (FSMA+) scheme began in 2019 with a €9 million allocation for study loans. That allocation was quickly taken up, with the MDB making another €15 million in further financing available.

FSMA+ is financed through EU funds from Malta’s European Social Fund Operational Programme.

The scheme offers applicants significantly reduced interest rates and a moratorium on payments that stretches for 12 months past the period of study, giving them time to find a job after finishing their further education.

Apart from paying for tuition fees, loans can be used to Finance accomodation, living and travel expenses for students pursuing studies abroad.

No additional fees and processing fees are charged and no collateral, life insurance and up-front contribution are requested.

In a statement about the schemes, the MDB said that  access to such soft loans “has allowed Maltese students to take up courses not only in traditional fields but also in innovative ones, such as sports management, health management and data intelligence, educational inclusivity, environmental economics and climate change as well as advanced courses in special education.Ż

The FSMA scheme was recently identified as one of the three best case studies of blended schemes in the EU by Fi-Compass, a platform for advisory services on financial instruments under EU shared management.

MDB chairman Josef Bonnici said he was encouraged by the scheme’s take-up.

 “It is very positive to see hundreds of students taking up this scheme to continue with their studies corresponding to their desired career path. It is also very encouraging to note that many are opting to take up fields of study which reflect the emerging economic trends, thereby contributing to enhance the human resource base which is necessary for the country to grasp the opportunities of the new digital and green economy”.

MDB CEO Paul V. Azzopardi added: “Although local educational institutions offer an increasingly varied array of study choices, students seeking specialisations in innovative niches often need to travel abroad for their studies. This entails a significant economic outlay. With this scheme anyone can follow studies irrespective of family resources.  We are very proud to assist in students’ career development through this advantageous scheme and we encourage more students to contact us, or Bank of Valletta, to discover more about this opportunity”.