BOV STUDIES PLUS+
FINANCING PACKAGE
FREQUENTLY ASKED QUESTIONS (FAQs)
Benefits
What are the main benefits of the BOV Studies Plus+ Financing
Package?
• The underlying objective of the BOV Studies Plus+ Financing Package
is to ease access to finance for students seeking to further their
studies. This will be done by:
• Providing a moratorium period, with a zero repayment, during their
studies, irrespective of whether in full time or part time study. This
will be ensured via a full subsidy of the 2.65% interest rate during the
moratorium period;
• The student will not be required to provide any form of collateral
requirements or life insurance cover;
• During the capital and interest repayment period the product has a
substantially discounted interest rate of 2.70%, and
• A longer term repayment programme ensures that the loan is
affordable for the student via a lower monthly repayment.
Does the loan need to be repaid?
Yes, all loan drawdowns plus interest will eventually need to be repaid.
Hence the lower the loan amount the lower will be the eventual repayment.
When does the loan repayment start?
The loan will start to be repaid in the repayment period, once the student
is engaged in employment relating to his or her studies. The repayment
period starts at the end of the Moratorium period. Interest starts to accrue
at a variable interest rate of 2.70% as soon as the Moratorium period ends
and will be paid by the borrower in the monthly repayments of capital and
interest during the repayment period.
Is there a need to effect repayments whilst studying?
No, there are no repayments whilst studying, and also during the
subsequent twelve months until the student is engaged in employment
relating to the studies conducted.
This period, that includes the course period and the additional twelve
months, is called the Moratorium Period, the maximum duration of which
is 60 months (5 years). During the Moratorium period there is no capital
repayments and the interest accruing in such period is fully subsidised.
When do loan repayments start?
Repayments start at regular monthly intervals in the Repayment Period,
as soon as the Moratorium period ends. The maximum duration of the
Repayment Period is 120 months, but the applicable Repayment Period is
assessed at a multiplier, in months, of the course period.
What is the interest rate? Is the interest rate a fixed or variable rate?
The interest rate, in the repayment period, will be a variable interest rate
since it will be composed of the fixed margin over the variable consumer
lending bank base rate (CLBBR). The fixed margin is 0.25% and the variable
CLBBR is currently 2.45% with a current final debit interest rate of 2.70%.
For the latest CLBBR please visit www.bov.com.
Is the student required to provide security?
The student is not required to provide any form of security under the BOV
Studies Plus+ Financing Package.
Does the student require a life insurance cover to avail himself of the
loan?
No, the student does not need to provide the Bank with a life insurance
as security and to benefit from the loan, thus reducing the costs on the
student to avail himself / herself of the loan.
What is the total amount available of funds available under the BOV
Studies Plus+ Loan? What happens when this is exhausted?
The total volume of loans is Euro 15million up to December 2026. As
outlined in the MDB call for service this can be topped up should the funds
be exhausted.
BOV Studies Plus+ FAQs – (Feb 2022 FSMA+)
Eligibility
Who is eligible to benefit under the BOV student lending facility?
• Eligible students undertaking an accredited course in MQF levels
5,6,7 or 8 as well as internationally recognised certificates would need
to be:
• Maltese citizens; or
• A national of an EU/EEA Member State or a family member of such
EU/EEA national (as defined in SL460.17 and SL217.04 respectively
for EU and EEA nationals), provided that such person has obtained
permanent residence in Malta in accordance with SL460.17 and
SL217.04 respectively for EU and EEA nationals; or
• A national of an EU/EEA Member State who is in Malta exercising
his/her Treaty rights as an employee, self-employed person or person
retaining such status in accordance with SL460.17; or
• A third country national that has been granted long-term residence
status under SL217.05
In the case of a married couple, and one of them wants to take the
BOV Studies Plus+ Loan, will the loan be in the joint names, or in the
student’s name?
In case of married couples, the eligible loan needs to be issued in the joint
names in line with Family Law. One of the applying parties needs to comply
with at least one of the categories above. The student will be the main
account holder with the other party being the joint account holder.
Is there a minimum and maximum age limits for the scheme?
The minimum age is 18 years old. There is no maximum age limit, however,
the student would need to be in employment for the duration of the loan
following the completion of the study course.
Is the loan applicable if a student opts to study in a European
University not located in Malta?
Yes, of course, it is the MQF level which decides eligibility and not the
chosen institution.
Is the Loan subject to normal Bank lending criteria?
Yes, loan is subject to normal Bank lending criteria and final approval from
BOV branch.
Direct Credit of salary or income to BOV account is required.
Where can I find a list of eligible courses?
It is always advisable that the degree or diploma being pursued is recognised
and ascertained in terms of the relevant MQF level through the Malta
Further and Higher Education Authority.
https://mfhea.mt/academic-qualifications/
Such recognition will play an important part in terms of other schemes
offering funding and for the eventual employment post studies.
The student may also contact his/her nearest BOV branch to confirm that
the course he/she is seeking to follow is an accredited course in MQF levels
5,6,7 or 8 or an internationally recognised certificate.
Is a post doc course eligible under the scheme?
Yes, a post doc course is eligible under the scheme subject to it being an
internationally recognised certificate.
Is the loan applicable to students reading for the degree on full time
basis only?
The scheme is open to both full time and part time students undertaking
an accredited course in MQF levels 5,6,7 or 8 as well as internationally
recognised certificates.
Do online courses qualify?
Online courses, both full time and part time are eligible, so long as
they classify as an accredited course in MQF levels 5,6,7 or 8 or are an
internationally recognised certificate.
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Is there any means testing process on the student before the loan is
approved?
There is no means testing, however, normal credit evaluation criteria will
apply.
The student as borrower, will invariably be requested to affirm at the
initial stage that, the studies in question and subsequent employment are
achievable and that all necessary plans to achieve the objective are in place.
Submitting a CV to the loan application will help since this will make the
plan look more sound.
The bank will be ready to help resolve and create any mitigating factors that
will make the intended project more viable and stress free.
Application Process
What type of documentation is required to apply for the loan?
The student may best contact his/her nearest BOV branch and provide the
following documentation:
• ID card,
• Student Budget Plan and Additional Details Forms detailing:
Educational Institution; Type of Degree; Official Name of Course;
Expected Course Start Date; Expected Course End Date; Expected
First Drawdown Date; Country of Educational Institution; Country
of Attendance; MQF Level Course, Full Time /Part Time Course and
Distance Learning, if applicable.
• Evidence of educational certification/results may also be requested.
Presenting such, will enable the Bank representative to follow the
purpose for the intended further studies and ensure that the studies
will enable better employment.
• Evidence of income (in case student is currently in employment) – FS3
and latest 3 payslips or P & L Account together with Inland Revenue
income and self-assessment form submitted to the Inland Revenue
covering a period of at least 3 years in case of a self-employed.
• Evidence of expected income arising from the employment following
successful completion of studies.
• Evidence re academic fees, related study expenses and subsistence,
transport expenses (including location) to further customer’s studies.
Loan Features
What is the maximum amount a student can avail from the loan?
The maximum loan amount is Euro 100,000, however the Bank may
ask for customer’s contribution to make the loan affordable. Should the
student seek other forms of funding these can be used as his contribution
to his study costs reducing the requested loan amount. All repayments
concerning the full credit exposure will be taken into consideration in terms
of feasibility to meet all liabilities when due.
What happens if the costs for the course exceeds €100,000?
In such circumstances, the loan will be capped at €100,000 , or at a lower
amount to make the loan affordable and the remaining expenditure would
need to be forked out by the student. In assessing your application, the
bank will take into consideration all repayments by the applicant concerning
the full credit exposure in terms of feasibility to meet all liabilities when
due.
Will students be able to avail of 100% of their expenses through the
loan?
Yes, students will be able to avail of 100% of their eligible expenses through
the loan on condition that the maximum loan amount capping of €100,000
is not exceeded and provided that the bank may ask for customer’s
contribution to make the loan affordable. Eligible expenses are defined as
Tuition Fees, Accommodation Fees, Living Allowance, Transport expenses;
Textbooks and other costs related to the study course, together with a 10%
foreign exchange contingency (when applicable).
In the case of payments made in non-Euro currencies, the loan will be
denominated in Euro, and drawdowns will be debited to the loan account
in the Euro equivalent.
What is the term of the loan?
The maximum repayment term of the loan is 10 years, however the bank
will consider a shorter loan term depending upon the value of the loan and
BOV Studies Plus+ FAQs – (Feb 2022 FSMA+)
the duration of the study course. The term of the loan will be set with the
ultimate aim of ensuring that the loans monthly repayments are affordable.
Can the loan be used to refinance held facilities?
No, the loan cannot be taken out to refinance existing facilities.
Can the loan be used to reimburse expenses already paid?
No, the loan cannot be used to reimburse expenses already paid.
Are there any additional costs to apply for the loan?
All the fees to apply for this loan have been waived by the bank to ease
access to finance for the student. However, as per normal banking practice,
if the loan is in arrears the bank will charge EUR10 per letter advising the
student in being in arrears on the loan repayments. If the loan requires
rescheduling, a fee of EUR 30 per request is charged.
Will the bank pay the Institution directly or pay the student to pay
the Institution?
The Bank will pay directly the course fees, lodging and other large amounts
which are normally accompanied by an agreement or a formal invoice. The
payment, for the aforesaid, will be paid directly to the issuer of the invoice.
Is there a capping on the amount of loans allocated to any individual
institute?
No capping is in place, since the funds are allocated to the students not the
educational institutes.
Obligations
What obligations will the student carry if he/she fails to get the
qualifications within the stipulated time frame?
Should the student fail to attain the qualifications within the stipulated time
frame, an extension of up to one year can be granted to attain the expected
qualification, subject to the moratorium period not exceeding the maximum
five years from the first disbursement.
What obligations will the student carry if he/she decides to stop the
studies / course?
Normally students terminate abruptly their studies due to health or
employment reasons. If the student is still within the moratorium period,
the moratorium period will be terminated and the student will start
repaying the loan, capital and interest. In addition, the interest rate subsidy
will be suspended with effect from one month from the date the student
decides to stop the studies. In such circumstances, the bank may increase
the interest to a normal commercial rate and decrease the loan term.
Loan Repayments
Will the student be able to benefit from the GetQualified Tax Rebate
after graduation and working in Malta?
Yes, of course, the loan is assisting the student to access finance during
the study period, once working in Malta such tax rebates can be used to
repay the loan.
What if, the student wants to accelerate loan repayments or decides
to pay the loan in full, in advance?
The student can accelerate loan repayments or pay the loan in full and will
not be subject to any penalty fees. In accelerating repayments, the student
is advised that the following monthly repayments will not be decreased
automatically to align to the remaining term of the loan. It is important
that no capital or accelerated repayments are made during the Moratorium
period.
Planning and Filling in the Budget Planner
How should Accommodation Expenses be determined?
Finance for accommodation will be primarily available for those students
travelling and living outside Maltese territory for their studies or part
thereof.
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There are courses which will require full term residence in the vicinity of Other General Questions
the educational institution, and even some other courses which will only
require short sojourns outside Malta.
Is Life Cover required for such loans?
The accommodation expense will be determined through a rental agreement
Additional collateral such as Life Cover is not requested by the Bank,
that will cover the rent and also, the provision of services, heating, water
however, it is recommended that customer takes out a life cover, especially
and electricity, internet subscription, furniture and bedding will normally be
when the loan value is relatively high and/or there are relative risks for
included in the rent amount being invoiced.
his/her financial wellbeing or that of his/her dependents/heirs if things go
Values specified in the rental agreement will include those specific to the wrong.
Rental Accommodation, and will should also specify items such as the
BOV Group Life Cover is not available for the BOV Studies Plus+ Loan
provisions of services, that include, heating, water, electricity, furniture,
product.
internet subscription and related accommodation Insurance.

Can shared accommodation be applied for?
Any accommodation expenses for accompanying tenants are to be excluded
from the amounts being financed. In the case of shared accommodation,
only the identifiable single portion pertaining to the student taking the BOV
Studies Plus+ Loan can be financed.
How should Living Expenses be determined?
Finance for living expenses will only be available for those students travelling
and living outside Maltese territory for their studies or part thereof.
Living allowances, for example, would normally cover groceries and will be
capped at Eur20 per day.
What should the student exclude from Living Expenses?
Additional amounts or costs related to mobile/internet subscriptions,
purchase of clothes, purchase of furniture/items to furnish rented
accommodation, etc., are to be financed in full by the student.
Will the interest subsidy in the Moratorium Period be forfeited in case
of abrupt discontinuation of studies?
In such cases, the Malta Development Bank may claim back any interests
paid during the moratorium period, especially if matters arise from particular
negligence or carelessness.
Customers are to advise at the earliest, any adverse situation that might
make students discontinue their studies or study plan with valid reasons
and documentary evidence provided forthwith.
Can a customer effect deposits or accelerated payments to the Loan
Account during the Moratorium Period?
No deposits/Capital repayments will be entertained during the Moratorium
Period.
Any entries will be reversed as these may jeopardise the Customer’s
Interest Subsidy during the Moratorium period.

Can a laptop and other types of equipment be financed through BOV

Studies Plus+?
All Digital equipment, laptops, tablets, smartphones, instruments & other
similar equipment are not eligible for financing under the BOV Studies
Plus+ Loan.
The student is to finance such costs from own sources or through
alternative methods of finance.

Call part-financed by the European Social Fund (ESF) 2014-2020 and

the European Social Fund Plus (ESF+) 2021-2027

BOV Studies Plus+ FAQs – (Feb 2022 FSMA+) page 3 of 3