Undergraduate Focus: The bank loan option
Besides loans offered by the government and private corporations, students can seek out bank loans to further their studies. Most local banks provide them in the form of personal loans that require individuals to repay them upon graduation.
The repayment duration is about 15 to 20 years depending on the bank’s terms and conditions. Examples of banks offering personal loans for education are CIMB Bank, Maybank and RHB Bank.
Other banks offer specific loans for education rather than the general personal loans. Below are two specific education loans.
Bank Rakyat Education Financing-i Falah: Bank Rakyat offers a loan programme to finance individuals who wish to further their studies locally or overseas. This loan will cover the full cost of tuition fees, cost of living and also the purchase of study materials such as text books.
The eligibility for the loan scheme is flexible; it is open to all Malaysians aged 18 and above and not exceeding 65 years at the end of the financing period. Besides that, applicants must have a fixed income and as for students who do not possess any income, they can apply through their parents, spouses, siblings or legal guardians.
The maximum amount an applicant can loan is RM200,000 with a guarantor. However, unlimited financing can be provided in certain cases that are subject to collateral value such as landed property and Bank Rakyat’s Investment Certificates. The maximum duration to repay the loan is 15 years.
For more information visit: www.bankrakyat.com.my
Source: New Straits Times