When it comes to education, the expenses can be quite high depending on where and when you want to study. The problem is that it is something you cannot usually foresee or predict because it is only until you register for the course or start finding one that you begin making the calculations.

Education Loans

In Malaysia, you can choose between a government-linked or a private organization’s education loan. From the government, you can get it from organizations like PTPTN known as the National Higher Education Fund Corporation. This is the most popular form of loan you can find where you can be either one of the three tier of borrowers:

  1. Parents who are BR1M recipients
  2. household income not over RM8,000
  3. household income more than RM8,000

Each tier of borrower here will be given a certain percentage of loan for your education.

What about other options?

The PTPTN loan is perhaps the most government-linked loan that you can apply for when it comes to education. There might be other parties that offer such loans because you might not be only paying for the school fees alone. When your child goes to university or for tertiary education, it could mean going to another state or country. You might need to look at other expenses like:

  • books and reference material
  • accommodation and rental
  • food and entertainment
  • laundry, medical and utility bills

So, does that mean you will have sufficient funds? Definitely not! You will need more than that. PTPTN loans might help with your tuition fees but what about other expenses? You might need an additional loan to cover these expenses. Here are some that you can consider:

Loans from banks

Several banks offer such loans and that includes:

  1. Bank Rakyat – This is one loan you can get that covers tuition fees, living expenses and other related ones. Its financing amount can go up to RM200,000 and for a maximum of 15 years.
  2. CIMB Bank – not a specific education loan per se but you can apply for their personal loan that allows you to borrow up to 8 times your gross income for a maximum of 5 years.
  3. OCBC Bank – an international bank that offers personal loans as long as you have fixed income of RM2,500 and above. There are many types of loans available where you can borrow up to RM150,000 for up to 10 years.
  4. MBSB – Not a bank but a financial institution that offers loans for personal and business purposes

Other organizations

There are certain organizations that offer these aids as well as long as you fulfill their criteria.

  1. AMMA Foundation – lets you apply for loans for diploma and degree courses
  2. FMM Tunku Tan Sri Mohamed Study Loan Scheme – You can apply for this loan to study degree and diploma in business and science courses
  3. Koperasi Jayadiri Malaysia Berhad (KOJADI)
  4. MiED Education Loan –