€15 million in subsidised loans now available for education through European Social Fund-backed scheme

Malta Development Bank and BOV have announced the launch of a €15 million loan portfolio which will be made available as financing to students who wish to further their studies.

The BOV Studies Plus+ supports students or professionals who want to pursue studies in Malta or abroad on a full time/part time basis or through distance learning.  It can help finance accommodation, living and travelling expenses in addition to the tuition fees on very favourable terms.

These include a moratorium during the study period plus one year during which the student does not pay any interest, a longer repayment term, no collateral requirements, and a low interest rate during the remaining term of the loan. The interest on the loan during the moratorium period is fully subsidised thanks to EU funds from Malta’s European Social Fund (ESF) Operational Programme secured by the Malta Development Bank (MDB).

Following the issue of an open call for expression of interest, Bank of Valletta was been selected to intermediate the Further Studies Made Affordable plus (“FSMA+”) scheme. Through this scheme, ESF funds will serve as a guarantee for the creation of the loan portfolio.

The FSMA+ builds on the success of the FSMA scheme which was launched in 2019 and generated over €9 million in new study loans.

“Education is a vital tool and all students should be able to access and finance their higher education as they proceed in their unique life journey,” said BOV Chairman Gordon Cordina. “Bank of Valletta is proud to have been selected by the Malta Development Bank to implement the largest fund for​ student financing to date, at even better rates than previous editions.”

He added that the scheme is tailored to equip students with confidence in the decisions they are making to plan and pay for higher education which in turn will “yield economic mobility and advancement for generations to come”. 

MDB Chairman Josef Bonnici said: “MDB’s collaboration with BOV has already provided over €9 million during the past two years and another €15 million will be made available to students and professionals seeking to maximise their potential.”

“The strong appeal of this funding spurred us to seek more financing from the ESF that will enable students to achieve more successes in their personal and professional lives and play an important role in Malta’s post-pandemic economic recovery.” 

“This multi-million-euro scheme will offer our youth and even senior students more opportunities to develop their skill-set and obtain their desired employment with the country benefitting from their additional skills and resources,” said Parliamentary Secretary for European Funds Stefan Zrinzo Azzopardi.

“This is yet another investment from European Union funds towards education and facilitating financing that will guarantee long term sustainable investments for the country.”