Cash woes? A personal loan to the rescue!

PTPTN Loan

The young generation in Malaysia, mostly, look at tertiary education as the gateway to a better career. However, it could be an expensive affair for many to enrol for higher studies because of the cost involved.

You may have heard about the government scheme that provides financial support to Malaysians to pursue tertiary education, i.e. Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN). Let’s take a deeper look into the scheme and how it can help you.

What does PTPTN do?

The National Higher Education Fund, PTPTN, provides partial or full financing when you pursue tertiary education at a locally-based education institution. With the scheme, you can get the financing at a lower profit rate. The best part about this loan is that a “First Class Honours” in your degree can turn the loan into a scholarship, which means you don’t have to repay the loan.

Are you eligible to get a financing from PTPTN?

If you are planning to get a financing from PTPTN, check if you satisfy all the criteria mentioned below:

  • Nationality: Malaysian citizen.
  • Age: Up to 45 years.
  • Remaining Period to Commence the Course: Less than a year.
  • Others:
    • You must have an offer to study in a higher education institution.
    • The course must be approved and accredited by the Malaysian Qualifications Agency (MQA).
    • No other sponsors should be there.
    • You should have an SSPN-i account before you apply for the loan.

Courses eligible for PTPTN funding

  • Degree and diploma courses are eligible for the funding.
  • Professional courses, such as ACCA and ICAEW, all master’s degrees and PhD programmes are considered.
  • You can choose a private or a public institution to pursue a degree or a diploma course.
  • If you are going for a professional or a post-graduate course, you must choose a public institution.
  • Even part-time courses can be eligible for the loan. However, the programmes must adhere to the qualifying criteria.

How much loan can you expect?

The loan amount is determined based on 3 factors:

  • Household income.
  • Institution.
  • Course.

If your household income is low, you can get a larger loan amount to support your education. Also, the loan amount offered for a private institution course is higher than that offered to a public institution course. You should also know that the loan amount offered for a humanities programme is much lower than that of a science programme. A minimum of RM1,000 up to RM26,000 can be granted based on the analysis of the above factors.

What is the profit rate?

The scheme follows the Islamic principle of Ujrah. A nominal profit rate of 1% p.a. is applicable to the amount you borrow.

Another good thing about the loan is that the profit rate will be eliminated if you repay the loan within 6 months from the completion of your course.

The scheme for repayments

You are given a period of 6 months after the completion of your graduation to start the repayments. If you aren’t able to start the repayments, you can go ahead and request the staff for an extension.

You want to apply for a PTPTN loan

There is a specific procedure to apply for a PTPTN loan:

  1. Open an SSPN-i account at a PTPTN counter or at a participating bank, such as Maybank, CIMB Bank, Bank Islam, BSN, Bank Rakyat, and Agrobank.
  2. Based on the choice of the institution, you have to open a savings account with a participating bank.
  3. Get a PTPTN number from BSN by paying a nominal fee of RM5. The number will be valid for 6 months.
  4. Fill up the application form on the official website of PTPTN.

The Malaysian government has made it easy for you to chase your dreams and settle with a good career. It is an opportunity for you to enrol for higher education at a profit rate of 1% unlike other education loans provided by the Malaysian banks. Also, the onus is on you to repay the loan promptly.

Latest News About PTPTN Loan in Malaysia

  • National Higher Education Fund Repayment Methods to be Announced Next Month

    Following the tabling of Budget 2019, the payment modes for National Higher Education Fund (PTPTN) will be announced by next month.The PTPTN Chairman, Wan Saiful Wan Jan, has said that the soon-to-be-made announcement will include all the necessary information regarding the repayment of student loans as per the new policies.

    As part of Budget 2019, Finance Minister, Lim Guan Eng, terms and conditions of repayment will be changed to accommodate salary cuts and income tax rebate for the National Education Savings Scheme (SSPN). The working committee of PTPTN is awaiting for detailed information from the Finance Ministry before making the announcement.

    The new initiatives include payment of the loan through deductions between 2% and 15% from the salary of the borrower. Companies that help employees repay their loan will receive a tax break. The income tax break for PTPTN has been increased to RM8,000.

    BBazaar Malaysia

    16th Nov 2018

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