Pursuing higher education often entails a financial commitment. In the words of Benjamin Franklin, a founding father of the US, “An investment in knowledge pays the best interest.” Accessibility to education must remain inclusive, ensuring that no individual is excluded from the enriching opportunities it provides.

To promote inclusivity, particularly for individuals in lower-income brackets, MBSB Bank Bhd has introduced its latest education financing offering — the MBSB Bank Education Financing-i (EduFin-i).

This innovative product aims to assist those aspiring to broaden their educational horizons by offering diverse financial support options, ensuring that no one is excluded from the pursuit of knowledge and personal development.

It is important to cultivate an educated society as it creates a skilled and competent workforce, the backbone of the nation’s economic growth and development. Education not only plays a pivotal role in shaping an individual’s personality, values and skill set but also serves as a pathway to elevate individuals and their families from poverty. It acts as a gateway, unlocking access to improved job opportunities and elevated living standards.

“The introduction of MBSB Bank EduFin-i in the market is to fulfil the demand from groups that need financing assistance for their children’s education journey. For example, students from a particular socioeconomic background who did not qualify for the full amount of education scholarship or financial aid from other providers,” says Tamin Jafeeri, head of the Personal Financing-i Department at MBSB Bank.

MBSB Bank is a full-fledged Islamic bank in Malaysia that provides shariah-compliant banking facilities to retail, small and medium enterprises and corporate customers. In addition to its list of financing products, the bank, through its digital capabilities, extends its distribution channels through online services such as mobile banking and virtual branches.

The EduFin-i is based on the shariah concept of Commodity Murabahah, which offers a flexible and attractive package to the panelled education institutions. MBSB Bank EduFin-i is seen differently in the market by providing convenience for students to cover the cost of their education.

It comes with unique and compelling value propositions such as a maximum financing tenure of up to 25 years and a financing amount up to RM250,000 for unsecured, 90% margin of financing & 20 years of financing tenure against the coursework fees.

Students who are pursuing tertiary education in foundation, pre-university (A-level), diploma, degree, postgraduate (master’s degrees and doctorates) and professional courses in the selected local and private education institutions under the bank’s empanelment are eligible to apply for the financing.

Additionally, EduFin-i also allows joint applicants. Applications can be done by two immediate family members and they come with takaful coverage as well as a full instalment that only commences upon the expiry of the study period.

“Other than tuition fees, MBSB Bank EduFin-i covers other expenses such as accommodation, learning materials and digital equipment. For example, a suitable laptop for engineering students, suitable equipment for medical students, or specific equipment for aviation students,” says Tamin.

Furthermore, he also observes that one of the most prominent challenges the bank faced while developing the EduFin-i was market penetration since the bank has only been around for just over five years.

“Although we are relatively a new brand, we have introduced numerous technological innovations to ease customers’ burdens with their day-to-day banking,” he adds.

Students who receive the financing benefits will not have to worry about making payments after each semester as MBSB Bank EduFin-i offers a significant advantage, whereby the financing payments will only commence once the study period ends.

Moreover, Tamin notes that although EduFin-i is a new product on the market, it still received positive feedback from student applicants, joint applicants and financial institutions.

“The flexibility package offered by MBSB Bank EduFin-i accommodates the student’s education journey, coupled with takaful that protects their financing and other product propositions, giving applicants more options than just depending on its usual selection. This also helps parents reserve some financial assets and invest in other products offered by MBSB Bank,” he says.

MBSB Bank remains steadfast in its commitment to adapting to the ever-changing dynamics of the market. It stands prepared to consistently broaden and improve its education financing offerings to meet the evolving needs of its customers.