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Students Loans Offered by Banks and Other Organisations in Malaysia

by StudyMalaysia.com on November 14, 2014 | Top Stories

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With the recent announcement by PTPTN on the new student loan scheme that sees a reduction in the amount a student can borrow, parents and students may have to consider other forms of financial aid such as student loans and personal loans.

Starting 1 November 2014, the National Higher Education Fund Corporation (PTPTN) will reduce the amount of loan a student can borrow by 5-15% in order to overcome the funding constraints caused by unpaid loans from previous borrowers.

In addition, PTPTN has introduced three tiers for potential borrowers - parents of students listed as recipients of BR1M aid will receive the maximum loan amount; students with household income not more than RM8,000 will receive 75% of the maximum loan amount; while students with household income exceeding RM8,000 would receive only 50% of the maximum loan amount. However, students pursuing a medical degree will still be eligible for the maximum loan of RM30,000. Read more here.

So what does this mean for students or parents who need a loan to fund their higher education studies or that of their child`s? While many students will qualify for some form of the PTPTN loan, the fact is that an even bigger number of students might find the amount inadequate.

Besides tuition fees, students and parents have to think of other costs that a typical student incurs at university - accommodation, textbooks, laundry, food, entertainment, and more. Students or parents should consider other sources of loans to help cushion the financial strains of a university education. Known as student loans, study loans, education loans or personal loans, here are some examples of loans offered by banks in Malaysia to students pursuing higher education.

Bank Rakyat Education Financing-i Falah

This financing covers tuition fees, cost of living as well as the purchase of text books and other educational aids for students who plan to continue their education locally or abroad.

Eligibility: Malaysian citizens aged 18 and above and not exceeding 65 years of age at the end of the financing period, working students with fixed income, students without income may apply through parents, spouses, siblings or legal guardians

Financing amount: maximum RM200,000

Financing period: maximum 15 years

Interest rate: 7.6% p.a (repayment in 5-10 years); 8.1% p.a (repayment in 10-15 years)

Guarantors: Guarantors can be exempted for applicants meeting the terms and conditions; students are required to be a guarantor; an additional guarantor is required if payment not made through Biro Perkhidmatan Angkasa

Collateral: Landed property; Bank Rakyat's Investment Certificates

CIMB Cash Plus Personal Loan

Unsecured term loan for personal use. A hassle free personal loan to fulfill your dream. No Collaterals, no guarantor and flexible repayment tenure up to 5 years.

Collaterals: NIL

Loan margin: Up to 8x of gross income

Loan amount: Min RM2,000; max RM100,000 (subject to maximum 8x of gross income whichever is lower)

Loan tenure: min - 1 year; max - 5 years

Eligibility: Individual applicant only; aged between 21 and 60 years upon application; minimum income RM2,000 (basic + fixed income only)

OCBC Al-Amin Cash Financing-i

This is a personal loan open to Malaysians aged 21 to 28 years with a monthly income of RM2,500. Under the Cash financing-I, four types of personal loans that are offered, namely, Progres-I, Sukses-I, Prestij-I and Corporate Cash-i.

The bank offers fast approval; no collateral or guarantor is needed. Financing amount is up to RM150,000 with fixed monthly instalments from as low as RM100 per month. Extended financing tenure up to 10 years is possible.

Need more options?

Check out these organisations that offer study loans to students pursuing various courses at higher educational institutions (HEIs) in Malaysia. Some organisations also offer loans for overseas studies.

AMMA Foundation

The AMMA Foundation offers study loans to needy Malaysians to pursue their studies at approved HEIs in Malaysia.

In order to apply for AMMA Foundation loan, the student has to meet the following criteria:

Malaysian citizen; pursuing a full-time diploma or degree course at a local university or college; and the candidate must pass all examinations and maintain a CGPA of at least 2.75 and above each year to retain the loan.

The loan amount varies according to the courses:

Degree courses: RM4,500 per semester per year (maximum: RM27,000)

Diploma courses: RM3,500 per semester per year (maximum: RM21,000)

FMM Tunku Tan Sri Mohamed Study Loan Scheme

The Federation of Malaysian Manufacturers (FMM) offers interest-free study loans to Malaysian students who require financial assistance to pursue higher education at Malaysian HEIs. The loans are offered for these courses: diploma and degree courses in engineering, science, management information systems (MIS), economics and business studies, management and accounting.

Applicants must be Malaysian citizens who are eligible to pursue/are pursuing full time studies at local universities/colleges/institutions. They should have good academic and extracurricular records.

The value of the loan is a maximum of RM9,000 per annum (degree); and RM6,000 per annum (diploma).

Koperasi Jayadiri Malaysia Berhad (KOJADI)

KOJADI extends an educational loan facility to enable needy students to pursue higher education at an approved local or overseas institution of higher learning. Presently, KOJADI has 12 loan schemes that cater to a wide spectrum of education courses ranging from vocational and technical to undergraduate and postgraduate studies.

The maximum loan amount offered is RM50,000 and is released in two or three disbursements over the entire duration of the course of study.

Click here for more information on the loan schemes offered.

MiED Education Loan

MiED offers study loans to underprivileged and needy students undertaking selected courses at MQA approved public or private HEIs in Malaysia. Overseas courses require certification from Jabatan Perkhidmatan Awam (JPA). The study loan covers only part of the tuition fees which will be paid directly to the institutions. Preference is given to students who obtain admission into TAFE COLLEGE, Seremban and AIMST UNIVERSITY, Kedah. MiED will impose an administrative charge of 4% per annum beginning 6 months after the completion of course until the loan is fully settled.

Other financial aids can also be found on our Scholarship page.

Sources for this article include:

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