3 Loans You Could Get from Banks to Further Your Studies
In Malaysia, the National Higher Education Fund (PTPTN) is usually the first thing that comes to mind for those seeking education or study loans. But if you are a working adult beyond the age of 45 (i.e. the age limit to secure a PTPTN loan) or do not fulfill any of PTPTN’s stringent requirements; you may need to approach the banks for help.
In this article, we look at some of the common ways in which Malaysians could secure financing from the banks for the purpose of furthering one’s education.
1) Study Loans
As the name suggests, a study loan is a loan product offered by a bank for the specific purpose of financing the borrower’s education. In Malaysia, notable banks that offer some form of study loan include*:
OCBC Bank: offers a Secured Study Loan that finances up to 50% of the value of a secured property, for a maximum loan period of ten years.
Bank Rakyat: offers a study loan known as Education Financing-i Falah that finances up to RM200,000 for a maximum loan period of 15 years.
*based on information provided on websites of banks in Malaysia as at August 2013
2) Personal Loans
Personal loan is a banking product that probably needs no further explanation. Basically, personal loans allow people to borrow a sum of money from banks for various purposes, be it to buy a car, go holidaying, or carry out renovation, just to name a few. Naturally, personal loans can also be taken to finance one’s education.
In Malaysia, different banks have different policies when it comes to personal loans. Some banks limit the loan amounts based on the borrowers’ salaries (i.e. an example could be five times of one’s fixed income), whilst others allow borrowers to loan up to RM200,000 depending on the fulfilment of criteria. Due to new loan regulations imposed by Bank Negara Malaysia on 5 July 2013, banks in Malaysia are no longer allowed to offer personal loans with loan periods over 10 years.
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3) 1Malaysia Education Caring Scheme (SPP1M)
Launched in 6 February 2013, SPP1M is a special “top up” loan scheme that offers additional funding of between RM100,000 and RM150,000 at interest rates of BLR -1% (during studying and grace period) and BLR +0% (during employment period) for tertiary level students. Technically, SPP1M is not so much a fresh loan as it is an additional financial aid for students on existing funds or scholarships. Loan period can be as high as 20 years.
Based on official sources, SPP1M is applicable by all Malaysians with minimum SPM, Foundation, Matriculation or First Degree. Applicants must be from selected courses aligned with national demands and must have secured placements in approved higher education institutions.
Though SPP1M is a national initiative launched by Prime Minister YAB Dato’ Sri Najib Tun Haji Abdul Razak, this special loan is currently applicable only through a bank. As of August 2013, Maybank is the only bank offering this loan, though RHB is expected to be the second bank to do so in the near future.
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