RHB Establishes Shariah-Compliant Education Financing Scheme

RHB Banking Group has introduced a new Shariah-compliant financing facility aimed at assisting Malaysian families with the costs of tertiary education.

Launched on 8 December, the “RHB Education Financing-i” is structured under the Commodity Murabahah concept.

The facility offers financing amounts ranging from RM10,000 to RM500,000, designed to cover tuition fees and related expenses for undergraduate, postgraduate, and professional programmes.

The scheme caters to both students and working adults. To facilitate repayment, the financing provides a tenure of up to 20 years or until the applicant reaches the age of 70, whichever comes first.

A central feature of the product is a grace period of up to four years during the course of study, allowing students to defer principal payments and focus on their academic performance.

Furthermore, to assist families in meeting income eligibility requirements, the plan allows for up to three joint applicants, restricted to immediate family members such as parents, spouses, siblings, or children.

Jeffrey Ng Eow Oo, Managing Director of Group Community Banking at RHB, noted that the product aims to prevent financial constraints from hindering academic ambitions.

“Access to higher education should never be limited by financial constraints,” Ng said. “We are committed to playing our part in addressing this national challenge by providing families with practical and ethical financing options”.

According to Dato’ Adissadikin Ali, Managing Director of RHB Islamic Bank Berhad, the initial rollout targets studies within Malaysia.

“Phase One (1) of the rollout focuses on financing for studies at domestic institutions to support the local education ecosystem, with plans to expand to overseas education financing in the next phase,” he stated.

Featured image by pch.vector via Freepik.