24 September 2016
Over a million PTPTN borrowers may be denied future loans
PTPTN borrowers who fail to repay loans on time or not at all blacklisted by CCRIS.
PETALING JAYA: About 1.3 million National Higher Education Fund Corporation (PTPTN) borrowers are at risk of being denied loans or other credit facilities by financial institutions, The Star reports.
The English daily said this was so after the borrowers were blacklisted under the Central Credit Reference Information System (CCRIS) for either failing to service their study loans on time or defaulting on repayments, which in turn saw them classified as “bad paymasters.”
CCRIS is a database used by financial institutions to evaluate those who have applied for loans.
PTPTN Deputy Chief Executive Officer (policy and operations) Mastura Mohd Khalid told the English daily that all PTPTN borrowers would be listed in CCRIS once it was time for them to start paying back their loan, which normally began six months upon graduation.
Those who regularly repay their PTPTN loans, she revealed, need not worry.
“If they are good paymasters, then their future loan applications will be approved.”
Mastura also revealed that since PTPTN started to use CCRIS in 2015, more defaulters had come forward to negotiate for a more lenient repayment mode.
Since its inception in 1997 until July this year, PTPTN has handed out loans to 2.49 million students.
Apart from CCRIS, PTPTN is also collaborating with the Immigration Department to bar defaulters from leaving the country.