Incentives under Budget 2017 for PTPTN repayment
Prime Minister Dato’ Sri Mohd Najib Tun Haji Abdul Razak had announced discount incentives for the repayment of PTPTN loan during the Budget 2017 speech on 21 October 2016. The incentives are valid from 22 October 2016 till 31 December 2017. They are:
- A 15% discount incentive for borrowers who make a full settlement of their total outstanding debt ;
- A 10% discount incentive for borrowers who make repayment at least 50% of their total outstanding debt;
- A 10% discount incentive for borrowers who make repayment through salary deduction or direct debit according to the repayment schedule.
The 15% discount incentive
One of the most fundamental terms and conditions of this incentive is that borrowers must make a full settlement of their total outstanding debt between 22 October 2016 and 31 December 2017. For example, if you were a recipient of PTPTN loan for diploma and higher levels of studies, you need to settle all your debts within the stipulated period in order to enjoy the 15% discount.
Another attractive feature of this incentive is that multiple channels of the settlement are considered for the incentive. This simply means they can use a combination of payments through KWSP (Account II withdrawal at www.kwsp.gov.my), or by cash or online method (e.g. JomPay) with condition that the payment is received by PTPTN within the same month. Therefore, borrowers are advised to make loan repayment no later than the 27th day of each month.
The 15% discount is derived from the total outstanding debt and adjustment for the incentive given will be done at end of the month. Please refer to www.ptptn.gov.my or contact PTPTN Careline at 03 – 2193 3000 for confirmation of your total outstanding debt.
More special, this 15% discount is also applicable to the Wang Pendahuluan Pinjaman (WPP) recipients who were not the PTPTN borrowers but are still carrying the WPP debt. Another exciting aspect of this incentive is that it is also applicable to borrowers who have already been subject to enforcement action such as blacklisted by the Malaysian Immigration Department or summons.
The 10% discount incentive
The 10% discount is valid for (1) one-off loan repayment at least 50% of the total outstanding debt balance; or (2) salary deduction or direct debit according to the repayment schedule. The recipients of Wang Pendahuluan Pinjaman (WPP) are entitled to this incentive under the same condition.
The salary deduction application can be done online at www.ptptn.gov.my. For direct debit, you need to obtain the application form from the PTPTN counter and submit your complete form to any nearby PTPTN branch. Please be reminded that only the original form is accepted. Direct debit is done through periodic deductions from either the savings account or current account involving 22 banks and it is FREE.
The advantages of this 10% discount incentive include disciplining yourself with a consistent repayment schedule to avoid loan arrears. This will save you from being black-listed by the Malaysian Immigration Department or summons. Without loan arrears, you have a clean credit record on the Bank Negara’s credit reference system.