Thursday October 11, 2012
Discount spurs more PTPTN borrowers to repay their loans
ENCOURAGED by the 20% discount announced in Budget 2013, more National Higher Education Fund Corporation (PTPTN) borrowers are paying off their loans, bringing the repayment rate up to 49.9%.
PTPTN chairman and Kuala Kurau MP Datuk Ismail Mohamad Said was encouraged by the increasing number of repayments and confident that the rate would continue to increase and reach the target of 70%.
He told reporters at the Parliament lobby that since the Budget 2012 announcement on Sept 28, 424 borrowers had applied for the 20% discount.
He said that out of this number, 179 borrowers, with loans totalling RM1.63mil, had been approved to qualify for the discount, saving them RM325,000 in total.
“PTPTN has since collected RM1.3mil in debt from those who paid in full.
“This is a very good initiative by the Government to encourage more to repay their loans.”
The discount, he said, was applicable for all borrowers who paid in full (in a lump sum), including those who had been blacklisted.
“However, none of those blacklisted has come forward to apply for the discount yet. We encourage them to do so,” he said, adding that the 132,801 blacklisted were barred from leaving the country.
Ismail said the 10% discount – offered to those who diligently paid their loans on time for 12 consecutive months – would only be given on the 13th month of repayment.
“We will know how many benefited from the 10% discount only after the 12 months.”
He added that the discounts were currently funded through PTPTN’s reserve fund, but would subsequently be funded by the Finance Ministry.