PTPTN Loan Explained

graduate diploma on money

The PTPTN Education Loan Scheme was set up just to provide education loans to students pursuing tertiary education locally.

You had just been accepted into the top private college in Malaysia, but you couldn’t afford it. Both your parents are retired and there is no way they can help out with the tuition fees on top of the monthly allowance that you will need living in the city.

The prospect of not going to college is unthinkable. Entering the workforce without at least a Bachelor’s Degree made as much sense as running out of a burning building just to fall into a quicksand – buried in no time.

If you’re caught in a similar situation, you need help. Here is an all-you-need guide to getting your National Higher Education Fund Corporation (PTPTN) loan approved and be on your way to the college of your choice.

What is it?

The PTPTN Education Loan Scheme was set up just to provide education loans to students pursuing tertiary education locally.

Am I eligible?

Students who wish to apply for a study loan with PTPTN must be:

  • A Malaysian citizen.
  • Aged 45 or below.
  • Passed SPM with at least three credits in any subject.
  • The remaining period of study at the time of application shall not be less than one year.
  • Students shall have no other sponsor.
  • Students must have an SSPN savings account before making an application.
  • Students with an offer of admission from a higher education institute.

How to apply?

If you answered yes to all the requirements above and you have already received an offer of admission to a higher education institute, here’s how you can get started on the application.

Step 1: Fill in the application form. You can get the hard copy of the form from PTPTN or any local institutions of higher learning. Or to make it even easier, apply at

Step 2: Prepare a CERTIFIED TRUE COPY of the following supporting documents:

  • Applicant’s identity card
  • Offer letter from your institution of higher learning
  • SPM certificate
  • Other qualification certificates. i.e. STPM/diploma/matriculation
  • Personal Account Number Statement/Book according to banks specified by the institution
  • Pay slip or Government Pensioner’s Card or J/EA/EC/BA Form or Income Certification Form of guardian and spouse of guardian.

Applicants who submit their loan applications in the second semester or beyond are required to include the following additional supporting documents:

  • Confirmation of student status from the institution
  • Copy of the examination results of all previous semesters

Step 3: For online application, you need to obtain a PIN for RM5 at the Bank Simpanan Nasional or its branches through the counter, automated teller machine (ATM) or cash deposit machine (CDM).

Step 4: For manual application, the completed form must be submitted through the respective institution of higher learning. Applications sent directly to the PTPTN will not be entertained.

Step 5: Open an SSPN account with a minimum deposit of RM20.

Step 6: Successful applicants who are offered PTPTN education financing must log on to the Online Financing Application website to print the documents listed on white A4 paper (80 gsm) in black.

Step 7: Upon approval, applicants must send two copies of the above documents, which are completed and signed. Applicants are to affix a RM10 revenue stamp on both copies of the agreement on the top right corner of the first page.

How much will I get?

Your loan is approved. What’s next? Under PTPTN, there are three types of loan:

  • Full Amount :  Parents’ income less than RM4,000 per month
  • Partial Amount : Parents’ income between RM4,000 to RM5,000 per month
  • Tuition Fees Only : Parents’ income more than RM5,000 per month

When is pay day?

The loan disbursements for the tuition fees will be according to the institution you are in. Upon the approval and completion of the application and agreement, the first disbursement will be made within 21 working days of the date of receipt of the documents. The approved disbursement will be credited directly into the student’s bank account.

For students getting Tuition Fee Loan Amounts only, PTPTN will disburse the funds directly to the IPT. For those with the Full Amount, the residual amount of money that will be debited into each students’ account each semester.

Insurance Deductions

The loan offered by PTPTN includes loan insurance to cover the loan issued in the event of the borrower’s death. Therefore, the insurance deduction will be as such:

  • RM0.74 per year on each RM1,000 disbursed (for loans received in 2012 and later)
  • RM0.40 per year on each RM1,000 disbursed (for loans received between 1997-2011)
  • Loan Advance Deduction (WPP deduction)

When do I start paying back?

Borrowers are to start repayment six months after graduation date. Ensure you are on time in your repayment to avoid black list (after 3 reminders). This is how your repayment period will look like:table
Can I get away from paying?

Yes, for students who have completed their bachelor’s degree with first class honours, you can make an application for exemption. However, borrowers from private institutions of higher learning are limited to those who pursue courses accredited by the National Accreditation Board (LAN).

What’s the interest rate?

There is a fixed administrative cost rate (the loan interest rate) of 3.00% p.a. on reducing balance for diploma and degree level courses, and 5.00% p.a. on reducing balance for masters, PhD and professional courses. However, there is a six-month grace period before the administrative cost rate is implemented. If the graduates wish to settle the loan in full before the grace period expires, then there will be no administrative cost charges applied.

To enjoy even lower interest rate, all new PTPTN loan applicants will be migrated to the 1% p.a. ‘Ujrah’ fee and existing PTPTN loanholders will have the option to switch from the existing 3% p.a. on reducing balance to a 1% p.a fixed flat rate.





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