The National Higher Education Fund Corporation (PTPTN) has introduced a new online system to enable borrowers to repay their loans conveniently
In an effort to increase the quality of the financial system service of PTPTN, borrowers may now register to use the Direct Debit facility using a newly-established online system.
Previously, an individual would need to head to any PTPTN office across the country to submit a completed physical form over the counter before the application is sent to the bank for processing. This method was considered to be complicated and tedious.
The new online system will speed up the application process and increase efficiency for using the Direct Debit facility as each registration can be processed within three working days.
Moving forward, borrowers may choose to register online on PTPTN's official website and repay their loans accordingly.
How does the Direct Debit facility work?
Direct Debit facility is one of the channels that borrowers may opt to use to repay their PTPTN loans It's an alternative for borrowers who do not wish to repay through a monthly salary deduction but still want to make the repayment consistently every month.
What this simply means is that a borrower grants authorisation to PTPTN to automatically withdraw loan repayments from a nominated bank account on a fixed schedule.
PTPTN chief executive officer Wan Ahmad Wan Yusoff has advised borrowers to consult a PTPTN officer and negotiate a suitable amount for the repayment.
"Call the Careline first. After the negotiation, fill in the Direct Debit form online. This will avoid issues such as Central Credit Reference Information System (CCRIS) or immigration records," he was quoted as saying by Malaysia Gazette.
"Some borrowers find that despite having their accounts deducted on a monthly basis, their CCRIS records are still bad due to the insufficient deduction based on the restructuring of the repayment schedule," he explained.
Borrowers may receive a 10% discount for using this new system to repay their loans
During the Budget 2017 presentation last year, Prime Minister Datuk Seri Najib Razak announced that borrowers are entitled to a 10% discount incentive if they make repayment through salary deduction or direct debit facility according to the repayment schedule.
This was also confirmed by the PTPTN chairman Datuk Dr Shamsul Anuar Nasarah recently.
"Borrowers who make consistent repayments up till 31 December this year through the online direct debit will enjoy a 10% discount," he was quoted as saying by The Star Online.
According to a statement by PTPTN, 32,003 borrowers have enjoyed a 10% discount amounting to RM1.95 million for repaying their loans through the Direct Debit facility as of 30 April 2017.
Is the service free?
According to PTPTN, the Direct Debit facility is free. No charge will be imposed for an application or any successful Direct Debit transactions.
However, a payment or deposit registration of RM1 will be charged each time an application is made, and the fee will be returned into the loan or savings account with PTPTN within one working day.
For more information on the Direct Debit facility, visit the PTPTN website.
Do you think more borrowers would start using the Direct Debit facility with the implementation of the online system? Let us know your thoughts in the comment section below.