PTPTN: Defaulters Fail To Repay Despite Lower Fee Scheme


The National Higher Education Fund Corporation (or also known as PTPTN) is frustrated that persistent defaulters continue to ignore various measures taken to make repayment easier on their pockets.

One of the efforts to encourage borrowers to pay their loan is the Ujrah scheme introduced in 2008.

The Syariah-compliant Ujrah loan repayment scheme charges a flat fixed rate of 1% per annum, while the conventional scheme charges an administrative fee ranging from 3% to 5% per annum on the reducing balance. It was introduced to encourage default borrowers to settle their outstanding loans in a shorter term at a lower fee.

Ujrah scheme allows borrowers to make an estimated 50% saving on the administrative fee. For example, if the principle loan amount is RM15,000 and the borrower has already repaid RM3,000. Then, the 1% rate is imposed on the balance sum of RM12,000 and not on the principle amount.

Borrowers who opt for the Ujrah scheme also have the advantage of rescheduling their repayment structures, something which the conventional borrowers are not eligible for.

Even with these advantaged and savings, this scheme has received lukewarm response from borrowers, said PTPTN marketing and strategic communications chief Mastura Mohd Khalid.

Only 23% or 257,582 out of the 1.1 million borrowers, who are under the conventional loan repayment scheme have switched to the Ujrah scheme.

PTPTN is not sure why many borrowers are not switching to the Ujrah scheme – whether it is because not many are aware of it or they just don’t want to change their loan agreement due to the perception that it entailed a cumbersome process.

Many of them who have not converted their repayment scheme are hardcore defaulters who have not even made a single repayment to PTPTN. A borrower would be categorised as a hardcore defaulter if he had not made a single payment for a period of three years.

PTPTN hopes borrowers will no longer have any misconceptions about the calculations under the Ujrah scheme. PTPTN also assures borrowers that their Ujrah scheme facility would not be withdrawn even if they defaulted on their monthly payments.


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