Student loans - FAQ

Discover how to get some financial aid to help obtain that coveted postgraduate qualification!

Why are organisations (e.g. loans that bond employees for a stipulated number of years), the Government (e.g. PTPTN) and financial institutions giving out loans to students?

• Various companies, organisations, the Government and financial institutions offer student loans so that people/working adults have access and options to a wide range of legitimate funds, which they can use to further their education and obtain the qualifications that they desire.
• The objectives, criteria and requirements of these loans may be different, but having the choice of loans benefits people as they can compare and select the loan that best fits their educational, professional and lifestyle requirements.

Type of loans offered (fixed amount, tuition fees, etc).

• Citibank has in place a broad portfolio of loans to meet different lifestyle and personal needs. For working adults, who are looking to further their studies, it has the Citibank Installment Loan. The Citibank Installment Loan allows applicants to obtain up to RM120, 000 in as fast as three hours.
• There is also flexibility in terms of repayment periods of between two and five years. There is no necessity for collateral or guarantors; plus the facility is available to both salaried and self-employed individuals.

Why and when do people get loans versus grants, scholarships etc
Generally, people take loans or apply for grants and scholarships to improve their current career/professional status. They seek better and higher education as well as relevant qualifications by acquiring more skills to improve their employability.

However, applying for a loan instead of a grant or scholarship and visa-versa is a personal choice and is usually driven by the level of freedom and control people want upon completion of their education. Scholarships may have obligations attached such as working for a particular company for a number of years to pay off the scholarship amount. Grants are non-repayable and may be more difficult to secure.

A loan, on the other hand, offers the freedom to move on as career opportunities arises,so long as the loan is paid or is being paid, according to the terms of the loan agreement.

Where and when can candidates get information about the loans?

• Candidates can gather a lot of relevant information about loans from websites, print and electronic advertisements as well counsellors from schools/colleges or universities.
• Once they have collected enough information, they should then select the loan that best suits their objectives/lifestyles.
• Then arrange an appointment with a financial adviser of the bank offering the loan and ask more questions, clear doubts and get proper guidance before signing on the dotted line for the loan.

What is the normal timeline given to apply for the loans?

• Different loans have different approval processes and timelines.
• For instance, at Citibank branches in KL, Puchong and Penang, customers who meet the specific loan requirement will be able to have money in hand, all in just a matter of three hours!

How is the selection process done?

• The selection process is based on the income and payment behaviour of applicants as loan approvals are subject to a credit review.

What are the necessary documents to be submitted?

• For salaried employees, the necessary documents include Mycard, latest payslip and latest EPF statement
• For students who are self-employed, the necessary documents include Mycard, latest payslip and latest EPF statement (last six months) or Borang B or equivalent proof of income, Business Registration Card.

What should students look for when applying for a study loan?

• First, do some homework and compare the different study loans available in the market.
• Speak to friends and other people who have taken loans before and gauge benefits and downsides.
• Check the internet and conduct additional research on loans offered by different organisations and financial institutions.
• And, of course, once you have decided on a loan, ensure the monthly instalments are affordable so that you can concentrate fully on your studies and not worry about the repayments.

This article is sponsored by Citibank