PTPTN loans are increasingly the go-to option for students to finance their higher learning.
The educational loan from the Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) covers foundation, diploma, degree, Master’s, PhD and professional courses at selected private institutions and all public institutions.
Moreover, the loan that you repay after graduation will help finance the next group of students looking to further their studies.
Currently all borrowers are charged a flat 1% interest rate, or ujrah, a Shariah-compliant service fee.
In recent years, a moratorium on PTPTN loans was in effect to ease the burden of PTPTN repayment for those affected by the global pandemic and floods.
Here we share with you some useful tips on how to repay your PTPTN loan.
Know the Terms and Conditions of Your PTPTN Loan
Before you accept the PTPTN loan, make sure you read the loan offer letter.
These loans come with terms and conditions that you need to take note of, for instance the total loan amount, the repayment period, and monthly repayment amount.
The duration of the loan disbursement period and number of semesters it covers also are included in the loan offer letter.
Knowing the details will enable you to know what to do when action is needed to be taken.
You are expected to start paying back your loan 12 months after graduation.
If you start your repayment right after graduation, you are exempted from paying the 1% interest rate with your monthly payments within the first 12 months after your graduation.
Be Disciplined and Consistent
Being financially disciplined will help you in the long run so be clear about what you owe and be consistent with payment.
Take note that PTPTN does not send notice to borrowers on when to start repaying your loan.
You will need to keep track of when to make payment and how much you need to pay PTPTN each month.
You can check your payment history, remaining loan amount, and more information on this PTPTN page.
Opt for Salary Deduction for Your PTPTN Repayment
If you’ve secured a job after graduation, that’s great!
One way to make payment for your PTPTN loan is through salary deduction.
It is one of the safest and best ways of ensuring your loan is repaid without hassle.
You will need to complete the Borang Kebenaran Potongan Gaji and submit it to any PTPTN branch along with your latest salary slip.
Alternatively, you can visit this PTPTN page and follow the steps provided.
Pay Over the Counter
Making your repayment over the counter is another option that you can consider since it is readily available everywhere.
You can do this at Digi kiosks at its stores around Malaysia, counters at Bank Islam, POS Malaysia, Bank Rakyat, CIMB Bank and Bank Simpanan Nasional (BSN), e-pay service at KK Mart, Caltex, Mydin, Petron, myNews.com, etc.
You can make payment at PTPTN counters across Malaysia and they are free.
Instead of visiting PTPTN counters which can be cumbersome during this current pandemic period, why not pay online?
Aside from a smooth and hassle-free repayment, you won’t have to pay extra fees when you pay on PTPTN’s website.
Alternatively, you can also make payment directly through any online banking portal in Malaysia that supports PTPTN loan repayment.
Know the Consequences of Not Paying
If you think you can skip out on repaying your PTPTN loan, think again.
Offenders will face serious penalties as the government is looking to curb the increasing number of loan defaulters.
It may negatively affect your credit score through the Central Credit Reference Information System (CCRIS), or you could be prevented from travelling overseas.
The negative impact on your credit score means low chance of approval for a new loan or credit card.
Knowing these penalties of defaulting can be enough motivation for you to make payment on time.
Pay More than the Monthly Stipulated Amount
If you can afford it, do consider adding extra to your scheduled monthly PTPTN payment.
Doing this will allow you to settle the loan earlier and save on interest charges.
Make sure you meet with PTPTN to restructure the repayment that suits you.
In a Nutshell
Taking the PTPTN loan will ease your financial burden on the pathway to get the education you want.
Despite the current challenges, there are various ways for you to make your loan payment and avoid future penalties.
In doing so, you will help the next generation of Malaysian students who also want to further their studies just like you.
For more information on higher education and how to lower the cost of it, check out our Pathway Match tool.