How is Islamic financing different from conventional loans?
Islamic financing follows Shariah principles and has a profit rate ceiling (max 15%) even if the OPR rises.
What happens if the student defaults before or after graduation?
The university or college is not responsible; the financing agreement is strictly between the student and the bank.
What if the student defaults during their studies?
If the account is in default, the bank will not release funds for the next semester, as disbursement is based on the institution's invoice.
What if a student drops out or wants to self-fund the remaining semesters?
The student must repay the amount already disbursed according to the financing agreement.
Are there late payment charges?
Yes, a late payment charge of 1% per annum is applied to overdue monthly installments until full payment is made.
Malaysia