A student loan or a study loan is a type of loan that is designed to assist students to pay for their studies and academic expenses such as tuition, study materials, as well as staying (hostel, food etc.) expenses. The study loans are commonly given for post-secondary learning courses. At times, government programs also assist a student to get a student or study loan. Most of the banks and financial organisations offer student loans in Malaysia. A student loan covers academic courses ranging from undergraduate programs, degrees to higher education courses. Banks or financial service institutes operating on conventional or Islamic concepts of banking offer the student loans to the eligible candidates.
Various banks and financial service institutions offer different educational loan schemes to their applicants. Here are some of the popular student loans in the country
|Student Loan||Max. Financing Amount||Tenure||Profit/Interest rate||Min. Income|
|PTPTN||RM26,000||6 months after the completion of your graduation||1.00%||RM4,000|
|OCBC Education Loan||RM250,000.||up to 7 years||Starts at 6.14% p.a.||RM7,500|
|Education Financing-i by Bank Rakyat||RM1 million||up to 20 years||4.85% p.a. to 9.75% p.a.||RM2,000|
|Skim Prihatin Pendidikan 1Malaysia (SPP1M) by Maybank||RM200,000||up to 20.5 years||Eff. Rate 6.85%||-|
|RHB Bank Study Loan||RM500,000||up to 20 years||1.25% + BLR||-|
|CIMB Bank Study Loan||RM100,000||10 years||Competitive profit rate||-|
|UOB Study Loan||RM150,000||up to 12 years||0.75% + BLR||-|
The interest rates are dependent on the amount financed and tenures involved. The interest rates offered by different lenders in Malaysia range from a minimum of 1% up to 8%. Some student loan schemes like UTAR Student Loan come with no interest rates involved.
|Loan Amount||Loan Tenure||Interest Rate|
|Up to RM200,000||Up to 20 years||Up to 8 - 9% p.a.|
An applicant of a student loan should fulfil the following eligibility criteria to acquire the loan:
Following set of documents is required at the time to obtaining a student loan:
Various banks and financial service institutions offer different educational loan schemes to their applicants. Here are some of the popular student loans in the country:
Q. How does an education loan or student loan work in Malaysia?
A. A student loan can many times fall under a personal loan category. Like any common loan type, once approved, a study loan or a student loan needs to be repaid through regular monthly instalments. The monthly repayment sum consists of the principal amount along with fees and interest. The interest rate is charged as per the loan tenure and credit history of the applicant.
Q. Do educational personal loans get an exemption from tax?
A. Yes, as personal loans are not counted as taxable income, you do not have to include it in your annual tax returns.
Q. Can I get a study loan if I am less than 18 years old?
A. Certain banks provide students loans for the candidates less than 18 years old with a co-borrower or a guarantor. The guarantor needs to be your close relative such as your guardian, parent, spouse or sibling.
Q. How quickly can I get a study loan in Malaysia?
A. Depending upon the bank and the financial institution, a student loan can be approved within 24 hours. Generally, a student loan can get approval within a couple of days if all the necessary documents are in place.
Q. I am a Malaysian citizen and I want to go to the United States for completing my higher education. Can I obtain a study loan from any local bank?
A. Yes, many local banks offer education loan for local as well as international courses. Depending upon your eligibility and course type, you can find a suitable study loan for your programme that covers most of your expenses.