National Higher Education Fund Corporation borrowers can now apply for and make loan repayments via direct debit arrangements with 17 banks.
PTPTN chairman Datuk Dr Shamsul Anuar Nasarah said borrowers would also be entitled to a 10% discount should they adopt this method of repayment.
At a press conference here yesterday, he said even though direct debit was available since last November through a partnership with Bank Islam and MyClear, the application process was tedious.
“Back then, borrowers had to come to our counters to complete the application for direct debit, and even a minor mistake could cause the application to be rejected,” said Shamsul, who added that online application was faster and took only three working days to process.
Shamsul said depositors of the National Education Savings Scheme (SSPN-i) could also use direct debit to increase their savings.
PTPTN chief executive officer Wan Ahmad Wan Yusoff advised borrowers who wanted to make deductions for the current period to apply for their accounts to be debited before the 20th day of the month.
“Otherwise, deductions will take place on the 10th of the following month,” he said.
Wan Ahmad pointed out that 52,000 or 1.4% of borrowers opted to repay through direct debit since April 18, while 41% still preferred to make over-the-counter repayments.
Shamsul Anuar said PTPTN was targetting a collection of RM4bil this year, on the back of RM49.8bil in total disbursements to date.
“As of April 30, as many as 32,003 borrowers have enjoyed the 10% discount for repaying through direct debit, which involved a total repayment of RM19.49mil, with discounts totalling RM1.95mil.
“Through this upgrade, PTPTN is hoping to reduce over-the-counter repayments, which will in turn increase repayments through direct debit by 10%,” he added.
In his Budget 2017 speech, Prime Minister Datuk Seri Najib Tun Razak announced that a 15% discount would be given to those who paid the outstanding amount all at once.
Those who pay off at least 50% of the loan in one lump sum would get a 10% discount on the amount paid.
The offer for discount would be valid until December, and was open to all 1.97 million PTPTN borrowers.
Source: The Star (7June 2017)