RHB Banking Group has launched a new Shariah-compliant financing facility aimed at easing the financial strain faced by Malaysian families seeking to pursue tertiary education.
The facility, known as RHB Education Financing-i, is structured under the Commodity Murabahah Term Financing-i concept and offers an affordable avenue for students and working adults to fund their academic pursuits amid climbing education costs.
RHB said many students were postponing or abandoning higher education due to financial limitations, and the introduction of this product was intended to ensure that opportunities for advancement remain within reach.
Under the financing scheme, applicants may include up to three joint applicants from immediate family members. This arrangement enables households to pool income eligibility, thereby reducing the pressure on any single borrower.
The package also provides a financing tenure of up to 20 years or until the borrower reaches the age of 70, whichever comes first. Students may benefit from a grace period of as long as four years while completing their studies, allowing them to concentrate fully on academic commitments without the need to service principal payments during that time.
Financing amounts range from RM10,000 to RM500,000, covering tuition fees and related education expenses. The scheme accommodates various levels of study, including undergraduate, postgraduate, and professional certification programmes.
RHB Group Community Banking Managing Director, Jeffrey Ng Eow Oo said the Group aimed to support Malaysians in overcoming financial obstacles that often impede access to education.
“Higher education should not be out of reach simply because of cost. This initiative reflects our commitment to provide responsible and ethical financial solutions that enable Malaysians to pursue their aspirations while contributing to the nation’s future development,” he said in a statement.
RHB Islamic Bank Berhad Managing Director, Datuk Adissadikin Ali noted that the product adheres strictly to Shariah principles, ensuring transparency and ethical financing practices.
He said the first phase of the rollout focuses on supporting programmes offered by local institutions, with expansion to financing for overseas studies planned in the next stage.
Further information on RHB Education Financing-i is available at RHB’s official website or at RHB branches nationwide.
-EDUCATION TVET ASIA