Students relief after MSB withdraws strict terms for loans

University students have expressed a sigh of relief following the decision by the state-owned Malawi Savings Bank  (MSB) to  the loans form that would enable them recover public university loans easily after students  cried foul that  it was prohibitive.

The financial institution has since said it will engage with the student bodies from University of Malawi and Mzuzu University on the flexible way of handling the matter.

The newly designed loan was meant to deal with defaulters .

Dora Banda: Forms withdrawn. Photo: Times Group

MSB marketing director Dora Banda confirmed the forms will be  “temporarily withdrawn”.

UNIMA Students Union Vice president Chitsanzo Satheka described the withdrawn loan form as “complicated.”

The students expressed relief with the  withdraw of the forms  by the wholly owned government financial institution and  hoped to map the way  forward together.

“It’s a good development that the forms have been withdrawn and we can talk now,” said Satheka.

Mzuzu University Student Union President Moses Chalera hoped that students concerns would be addressed.

Government  this year  introduced a punitive loan scheme on the back of the treasury losing millions of dollars due to defaulting alumni who had previously been extended a helping hand.

Students will also be required to start servicing loans immediately after finishing university regardless of whether or not they secure employment.

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