Monday, November 15, 2021

1 Million Malaysian Owes RM9 billion PTPTN Loan

Almost a million borrowers under the National Higher Education Fund Corporation (PTPTN) owe a cumulative total of RM9bil in study loans. 

As of Sept 30 this year, about 2.4mil borrowers have completed their studies and should have begun repaying their loans amounting to RM24.6bil. Of this, some 77.5% have started repaying their loans with 800,000 borrowers having completed their loan repayments.

About 400,000 are consistently repaying their loans according to the repayment schedule while 400,000 are repaying but not consistent in their repayments. A total of RM15.5bil has been repaid.

PTPTN was offering a 12% discount for borrowers who repay at least 50% of their loan amount. There is also a 10% discount for borrowers who agreed to repay their loans by way of monthly salary deductions. PTPTN has made it easier for borrowers to repay their loans online and not only through counters.

Legal action against errant borrowers will only be instituted as a last resort after exhausting all other avenues to recoup outstanding loans.

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