What is a loan?
According to the Malay dictionary, the definition of a loan refers to anything that is lent to someone temporarily and must be returned within a specified period.
This includes PTPTN education loans, where every borrower is required to repay the loan 12 months after completing their studies, as stipulated in the agreement. However, not all borrowers adhere to this contract due to various factors, especially the current economic challenges, leading to their loans becoming overdue. Therefore, PTPTN takes proactive steps for borrowers facing any issues, urging them to discuss with PTPTN to restructure their loans.
Contents
1. Why is it necessary to restructure a loan?
Loan restructuring is actually aimed at providing convenience for borrowers to modify the structure of the Repayment Schedule (JBB) and set monthly installments based on the borrower's capability so that the monthly installment amount can be reduced or the loan term extended. This is done to lessen the monthly financial burden for borrowers who may be experiencing financial difficulties or who want to improve their financial management.
2. Advantages of loan restructuring
- Zero arrears
Your loan arrears will return to zero. Borrowers will be offered a new agreement, cancelling the previous one. The previously high and burdensome arrears will be reset to zero, and borrowers can start paying with the new installment amount.
- Reduction in monthly installment payments
Through loan restructuring, the monthly installment amount can be reduced based on the borrower's capability, making it easier to manage monthly cash flow.
- Flexible loan tenure
Borrowers can choose to extend the loan tenure to reduce the monthly payment amount; however, the period is still subject to the terms and conditions set.
- Avoiding legal action
Loan restructuring helps borrowers avoid facing legal action or the risk of bankruptcy due to their inability to repay the debt.
- Updated CCRIS record
The borrower's CCRIS record will be updated based on the newly agreed-upon agreement, and the borrower must comply with the latest terms to maintain their CCRIS reputation.
3. Loan restructuring requirements
Borrowers must meet several criteria to qualify for loan restructuring:
- Loan must be under Ujrah or conventional status
- Loan has high arrears
- Borrowers facing difficulties in repaying their PTPTN loans.
#InterestingFact Recipients of the Advance Loan Payment (WPP)
Recipients of WPP are not eligible to apply for loan restructuring because WPP is an advance payment of RM1,500 given to eligible students before they enroll in Higher Education Institutions (IPT).
4. How can the loan restructuring process be carried out
- Borrowers need to check their loan statement through myPTPTN as an initial preparation.
- Borrowers should apply for repayment consultation for PTPTN loan restructuring through the myPTPTN web application.
- PTPTN Sales Executives (EJ) will contact the borrower within seven (7) working days after the application is received.
- After the borrower signs the new agreement, they are advised to consistently repay the PTPTN loan through salary deductions or direct debits to avoid recurring arrears and maintain a good CCRIS record.
5. Documents required during the counter consultation
During the consultation process, borrowers are advised to prepare important documents such as:
- Copy of identification card
- Salary statement
- EPF statement
- Other supporting documents such as the current total commitments
Tips for borrowers before applying for loan restructuring
Review your finances carefully
- Before applying, it is important to assess your financial situation and determine the need for restructuring.
- Ensure you have a clear picture of your income, expenses, and other financial commitments.
Make appropriate choices
- Choose the restructuring option that best fits the borrower's financial situation.
- Consider the payment term and the amount of installments that can be paid each month without affecting basic necessities.
Consider financial advice
- Seek advice from financial experts who can assist you in making wise decisions.
- Financial experts can provide professional insights on how to manage debt and improve your overall financial situation.
Conclusion
Restructuring your PTPTN loan is a wise step if you are truly facing serious financial difficulties and experiencing pressure in settling all your debts.
However, if your EPF Account II is sufficient to settle the arrears, you can pay the arrears through EPF Account II and continue repaying consistently via salary deduction or direct debit to prevent further arrears and maintain your CCRIS record. You may also consider continuing with the restructuring or keeping your existing loan.
More details
If you have any questions, please contact the PTPTN Careline at 03–21933000 or follow the official social media @PTPTNOfficial for more information.
May this article be beneficial to you.
