Malaysia Financial Blogger | Financial Freedom Ideas | imDavidLee.Com

How to Payback PTPTN Online with CIMBClicks?

It is convenient for you to make PTPTN repayment now. There is lot of Internet banking that you can select from such as Public Bank, CIMB, Hong Leong Bank, RHB and etc. The entire process for PTPTN repayment won’t take you more than 5 minutes to complete. Isn’t that great?

Previously, I was using PBeBank to make PTPTN loan repayment but now I will recommend you to use CIMBClicks service as it’s the lowest service charge in the town! How much? It’s just RM0.50 charges incurred. It really can save you a lot of money.

Here I want to share with you’ll on how to payback your PTPTN loan using online banking:

Step 1: Login to your CIMBClicks account, select “Bill Payment“.

Step 2: Then select Payee Category to “Education” and Payee Name to “PTPTN - Bayaran Balik Pinjaman Pendidikan“.

Step 3: Next, key in your personal details.

Step 4: Check your SMS to get your TAC. After that, key in your Transaction Authorization Code (TAC).

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PTPTN Ujrah Scheme: Update PTPTN Interest Rate to 1%

As we known, our Prime Minister had announced to reduce PTPTN administration fee from 3% to 1% since year 2008. But, we can see that there are still quite a great number of PTPTN loan borrowers are still paying 3% of administration fee today.

In order to solve the above issue, our government had introduced Ujrah Scheme to encourage all PTPTN loan borrowers to update their information. This is to expedite the process of changing 3% to 1% of PTPTN administration fee.

Under this Ujrah scheme, you need to follow phase by phase in order for you to get reduction of PTPTN administration fee:

i. First, you need to update your info in Ujrah website. What you need to do is just keyed in your identity card number and email address.

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Direct Access : 0% Interest Balance Transfer For 6 Months

Do you want a short term Loan with 0% interest charge? You can do a balance transfer with CIMB Direct Access. CIMB Direct Access has been offering 0% interest on balance transfer for 6 months period. Bear in mind that the balance transfer is truly 0% and there’s no upfront fees, processing & admin fees, admin fees and etc.

If your mission is to clear your credit card debts, then you can take this plan in order for you pay less in interest. For example, lets say you made a purchase of RM10,000 with your EON Bank credit card last month and received your monthly statement from EON Bank this month showing that the RM10,000 is due on 15 December 2010. Well you can do balance transfer for this RM10,000 with Direct Access. But, you need to aware of something and what you need to do is:

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How Does Base Lending Rates (BLR) Affect You?

Since July 2010, our Base Lending Rate (BLR) has increased 6.05% to 6.30%. As a result, borrowers have to pay additional months of installments. This is because when BLR increase, your interest payable or your loan tenure will also be increased subsequently.

For example:

Total loan amount = RM 100,000 to be repaid over 30 years.
Previous interest amount = 6.05%
Monthly repayment = RM 492 (assuming a 4.25% after BLR - 1.8%)

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Do You Think PTPTN Defaulter Should Be Barred From Travelling Overseas?

As we known, those students who borrow PTPTN loan are mostly coming from low to middle class people. At the end of the day, most of them will end-up working with public and private sector, and there’s a minority of them will work as high level people. I personally do not agree PTPTN barred loan defaulters from traveling overseas. Instead of that, we should sit down and think of other alternative that can help them to pay during this current economy situation.

Besides that, barred defaulter from travelling overseas cannot really solve the problem as some of defaulter may works as travel agents, journalist and etc that require to travel overseas every month.

What Action Will Be Taken If Loan Defaulters Refuse to Payback?

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Difference Between MRTA vs MLTA

Basically, both are the Mortgage Life Insurances which pay off the outstanding loan balance in the event that the borrower dies or suffers from total and permanent disability before the loan is fully settled.

MRTA known as Mortgage Reducing Term Assurance whereas MLTA is Mortgage Level Term Assurance. Normally, it can be purchased from any banks. MRTA is an insurance policy and has become a common and acceptable policy that adds to your mortgage loan. The premium is paid upfront in one lump sum.

The borrower can choose the amount and tenure of the coverage. The amount of premium will be determined by his age mostly. To the borrower this is relatively a hassle free, affordable and necessary policy.

However, MRTA has a reducing premium over time, as you pay your loan, the amount you owe the bank would reduce and the amount you need to be insured for would also be reduced. So, for me it is an expense item as you don’t get a single cent out of it in the end.

MLTA is slightly different from MRTA as it offers an alternative for a borrower who is looking for a life insurance which offers protection, savings and returns.

The premium is paid on a monthly, quarterly, half yearly or yearly basis and the policy holder can choose to have a wider coverage other than death and total and permanent disability.

Below is the comparison between MLTA vs MRTA:

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Difference Between Housing and Car Loan Interest Calculation

I believe still many people do not know how the housing loan and car loan interest are calculated differently.

Car loan is not like housing loan. Car loan interest is calculated based on the total amount of loan that you have and the interest is fixed. So, car loan is flat and if you settle the loan payment early, you still have to pay the interest for the rest of the agreed loan tenure.

My Personal Advice:

Do not take car loan for longer period. If you can’t afford the monthly payment due to the short tenure, then try to work backwards and set a target of shorter loan period, and save up a sum of money so that you can put a bigger downpayment. In the end, you’ll save a lot of money in the long run.

Imagine: if you loan 40k, 40k x 3.75 %(9 years loan interest) = RM1500. So, your final interest would be RM13,500.

Let say if you put in a bigger downpayment 20k, 20k x 3.5%(5 years loan interest) = RM700. So your final loan interest would be RM3500 only.

That’s saving of RM13k++, not to mention paying a car loan for 9 years is just so ridiculous…I can see most of the people will start cursing after 3-5 years time that they still have to pay the bank another 4 years when their car value is less than half the original value.

Car is a liability not an asset. But if you invest in properties, the price might goes up 10 years later.

For me, with less commitment on a car, then your money can be put elsewhere in other investment vehicles to make the money grows. This is the reason why I don’t think of buying a fancy car at this moment.

How About Housing Loan?

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