Further Studies Made Affordable

The Malta Development Bank (MDB) is collaborating with the Ministry for European Affairs and Equality (MEAE) to launch the Further Studies Made Affordable (FSMA) Financial Instrument (FI) that supports people in further developing their potential through further and higher education. The FI is financed under the Operational Programme II – “Investing in human capital to create more opportunities and promote the wellbeing of society” which is co-funded by the European Social Fund Programme 2014-2020.
The MDB has been entrusted with the implementation of the FSMA FI by the Managing Authority (the Planning and Priorities Co-ordination Division) within the MEAE. The initial fund allocated by the Managing Authority to this FI has been set at an amount of up to EUR 2 million with the possibility of increasing this amount to EUR 3 million should there be a demand.
The objective of the FI is to support the development of human capital and is aimed to meet the financing needs of students seeking to pursue a study programme for accredited courses in MQF levels 5, 6, 7 and 8 as well as other internationally-recognised certificates. The eligible students shall be entitled to receive support through the FI for the activities related to tuition fees, accommodation costs, subsistence expenses and other expenses to further their studies in Malta and abroad.
The MDB is launching an open Call for the selection of one or more eligible Financial Institution to provide the service of implementing the FSMA Financial Instrument. This FI is designed to improve access to finance for Eligible Students pursuing further eligible education. The selected financial institution/s shall benefit from capital relief and loss protection via the provision of a capped guarantee on a portfolio of loans originated to eligible students. The proposed FI will also include an interest rate subsidy element which covers the full interest payments due by the final recipients during the moratorium period. The maximum moratorium on the payment of interest is equal to the duration of the academic course plus one year (up to a maximum of 5 years). The duration of the guarantee is for the term of the loan up to a maximum of fifteen years, covering up to 5 years moratorium and up to 10 years repayment period. The Portfolio shall be managed by the Financial Institution selected through the Call.


 How to apply for the FSMA Financial Instrument?

For Financial Institutions:

If you are to become an MDB eligible financial intermediary, you can download all the application documents from the links below and apply by responding in full to the Call for Service by the 26th July 2019. The application documents include important information about the FSMA financial instrument, the eligibility and exclusion criteria for financial intermediaries and about the selection process.

Questions & Clarifications:

For Students:

The MDB does not finance prospective students directly, but only via the selected financial intermediaries. The list of financial intermediaries cooperating under this financial instrument shall be published on this website on 12 August 2019. The financial instrument shall be launched during the first week of October 2019.