There’s no doubt that education can be an expensive necessity.
And while flashy offers for scholarships are everywhere, not everyone has the grades to qualify. But all hope is not lost! Even if you haven’t succeeded in applying for a scholarship and have exhausted other means, you might want to apply for an education loan.
In this article, we highlight some of the education loans available in the market to help you begin your journey towards receiving that scroll!
#1. Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN)
Perbadanan Tabung Pendidikan Tinggi Nasional (or the National Higher Education Fund Corporation) is a government loan which was set up to help Malaysians pursue their tertiary education.
The great part about this loan is that it has an extremely low interest rate of just 1% fixed rate per annum and can even be converted to a scholarship if you achieve First Class Honours in your degree. However, the loan amount you receive will depend on your household income and the course you are pursuing.
For more details about PTPTN, click here.
#2. Pembiayaan Pendidikan Boleh Ubah (PPBU) Bank Rakyat
PPBU refers to an education loan by Bank Rakyat for underprivileged Malaysians seeking to pursue their undergraduate degrees full-time at either public or private universities in Malaysia.
You’ll be happy to know that the loan is interest-free and you can even get a discount if you score good grades. However, note that specific courses are prioritised and loan amounts awarded are capped at a specific amount, depending on your course and institution.
For a list of criteria and how to apply, click here.
#3. AMMA Foundation Study Loan
The AMMA Foundation is a non-profit organisation that offers interest-free study loans to financially-challenged Malaysian students who intend to further their studies at a local or foreign higher education institution. Loans are awarded based on the applicant’s course and financial position.
Shortlisted candidates will be interviewed and are expected to maintain a CGPA of 3.5 if successful. You will be required to make a minimum repayment of RM300 upon starting a job or 6 months after graduation, whichever comes first.
The annual deadline for applications is 30 June. For more information on how to apply, click here.
#4. ECM Libra Foundation Study Loan
ECM Libra Foundation’s study loan is for underprivileged Malaysians who have been offered to study at MQA-approved programmes at a local private or public university or college.
This loan is meant to benefit needy students who have excellent academic and co-curricular records and those who have successfully undergone the selection interview process with their guarantor. Loan amounts awarded by the foundation are typically capped at RM90,000 and are interest-free. However, you will incur interest for late payments.
To find out more about this loan, click here.
#5. MARA Loans
Majlis Amanah Rakyat (MARA) offers a slew of merit-based and needs-based interest-free education loans each year.
Although there are some requirements that differ depending on the type of loan you apply for, generally, applicants from B40 and M40 families are prioritised, and prospective recipients must have at least one parent that is Malay or is of Bumiputera status.
For more information on the loans offered by MARA, click here.
#6. Kuok Foundation Loan
Loans awarded by this foundation are for needy Malaysians who have a good academic record and are actively involved in co-curricular activities.
Students pursuing undergraduate programmes at Malaysian or Singaporean universities; selected Malaysian private universities and colleges; or students studying diploma or certificate courses at Malaysian public polytechnics are eligible for this interest-free loan.
Shortlisted candidates must attend an interview to qualify for the loan.
For details, click here.
#7. SOCSO Education Loan
This education loan is awarded by Malaysia’s Social Security Organisation (SOCSO) to dependents of beneficiaries of the social security scheme.
The loan is for individuals studying at MQA-approved diploma or degree courses at public or private universities in Malaysia, as well as students studying Malaysian Skills Certificate courses.
Loan amounts must not exceed RM100,000 (excluding sustenance allowance) and will only be given to individuals who have failed to obtain loans from other organisations and those who are financially incapable. The loan will include a service charge of 2% per annum on the total outstanding amount and the maximum period for repayment will be determined based on the loan amount allotted.
For more information on the SOCSO education loan, click here.
#8. MiED Education Loan
Maju Institute of Educational Development (MiED) is a non-profit organisation that administers education loans for needy Malaysian students interested to further their education at private or public universities locally or abroad. The loans are meant to supplement an individual’s PTPTN fund and are applicable for approved courses at recognised institutions.
Loans are administered to students who have a good academic record and who are active in co-curricular activities. Shortlisted candidates will be required to attend a selection interview. The interest rate for this loan is set at 4%.
To apply or find out more about this loan, click here.
#9. Skim Prihatin Pendidikan 1Malaysia (SSP1M)
This education loan is an initiative by Yayasan Peneraju Pendidikan Bumiputera and is meant to top-up existing funds or scholarships. This loan is awarded by a partner bank (Maybank) and is given to Malaysian students who are pursuing a bachelor’s or master’s degree at an approved public or private institution.
The SSP1M loan is only offered for specific courses such as business, law, health science and architecture and the loan amount received is based on the type of course you’re pursuing, and how much has been covered by existing funding. The interest rate during the study period is 5.85% and goes up to 6.85% upon graduating. Repayment of the loan must be made within 15 years.
To find out more about this loan and the courses that are covered, click here.
#10. KOJADI Education loan
Koperasi Jayadiri Malaysia Berhad (KOJADI) is a co-operative society established to provide educational loans to needy students who wish to pursue their higher education.
KOJADI offers a wide variety of loan schemes for a range of courses. This includes vocational, technical, undergraduate and postgraduate programmes for both local or international studies.
The loan can also be used to top up existing schemes, such as PTPTN. However, it’s important to note that the interest rate starts at about 6.8% and comes with a hefty application payment of about RM500 to RM1,000, excluding additional processing fees.
For more information on the various schemes available, click here.
#11. Bank Rakyat Education Financing-i
Bank Rakyat Education Financing-i is for individuals who need help financing their education in Malaysia or abroad.
Loan applicants must have a minimum fixed monthly income of RM2,000. The loan amount can go up to a whopping RM1,000,000 which can be repaid within 20 years. Repayment of the loan amount can be made through salary deduction at an interest rate of 7.75% or through any other means of cash transfer at an interest rate of 9.75%.
To apply for this loan, click here.
#12. OCBC Education Loan
The Oversea-Chinese Banking Corporation (OCBC) Education Loan is given to individuals who are keen on studying MQA recognised programmes either locally or internationally, including twinning programmes. The loan amount is capped at RM250,000 and can be settled anytime within 7 years without penalty.
The loan is open to Malaysian residents between the age of 21 to 60, and who have a minimum monthly income of RM7,500. The interest rate for repayment ranges from 6% to 11%, depending on the borrower’s income.
To find out more about this loan, click here.
While the idea of being burdened by a huge debt even before you start working sounds less than attractive, taking a loan will help you attain the qualification you need to get you into the workforce.
We hope this information will give you some insight into the types of education loans available to help you make an informed choice about the financial aid that’s right for you. Good luck!