Malta Development Bank loans to help students access further education have topped the €20 million mark, with almost one-third of that amount used to finance aviation-related courses.

The MDB operates two specialised education financing schemes, the Further Studies Made Affordable (FSMA) and the Further Studies Made Affordable Plus (FSMA+).

By the end of November 2023, the two schemes generated €20.8 million in loans, supporting 545 students in a broad range of study areas.

The most popular courses related to aviation (29%), economics and finance (26%), and medicine or health-related subjects (11%). IT, arts and law-related courses also feature regularly in the courses supported by the Bank.

Aviation-related courses took an even bigger slice of the pie when financing was broken down in volume terms: 45 per cent, or €9 million, of the total was allocated to students in such courses.

The state-run MDB provides financing facilities which banks then use to make capital available to customers.

MDB programmes have been used to help businesses survive the COVID-19 pandemic, help cushion the impact of rising wheat and animal feed prices due to Rusisa’s war in Ukraine and help local SMEs grow their businesses, among other things.

Its two education-related schemes are tailored to help students seeking specialist courses. Students receive a grant in the form of an interest rate subsidy as well as  a guarantee that allows them to access bank financing, making educational loans significantly more accessible.

MDB’s newly appointed chairperson Leo Brincat said he was pleased to see the bank hit the €20 million milestone.

“Our commitment to provide financial support and guarantees for specialised courses has plugged a market gap in Malta and is a testament to the bank’s dedication to fostering economic growth and development,” he said.

MDB chief executive offices Paul V. Azzopardi said the two schemes had made further education accessible to many students who would have been otherwise unable to continue their studies.

Prospective students interested in furthering their education can tap funds from the MDB’s two schemes through Bank of Valletta, which has partnered with the MDB for the initiative.

Funds allocated are sourced from the European Social Fund and European Social Fund Plus.

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