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Finance Minister Lim Guan Eng made an announcement about the implementation of the Scheduled Salary Deductions or better known as Potongan Gaji Berjadual (PGB) for PTPTN. Borrowers earning more than RM1,000 a month will have salary deductions from 2% to 15% for their loan repayments.
In recent news, that seems to have changed. Education Minister Dr Maszlee Malik shared that this PGB implementation is for borrowers (read: you) with a monthly income that exceeds RM2,000.
If these changes were to take effect, you can’t escape your loan anymore. Below are some of the things that you need to know about this new PTPTN repayment scheme.
So, how does this PGB works?
According to PTPTN Chairman, Wan Saiful Wan Jan, PTPTN would work with all relevant agencies such as Employees Provident Fund (EPF), Inland Revenue Board (LHDN), Retirement Fund Inc (KWAP), Immigration Department, Companies Commission of Malaysia (SSM), the Accountant General’s Department (AGD) and Urusan Gaji Angkatan Tentera (UGAT) to obtain information on the salaries and details of borrowers’ employers in order to implement PGB.
PTPTN will then issue a directive for employers to deduct salaries according to the percentage set. To encourage employers to do so, the government will qualify them for tax rebates on the repayment amount. This comes with a condition that employers CAN’T impose any requirement or demand on the employees after payments have been made.
Even borrowers who aren’t formally employed aren’t safe. You’re required to verify your income information on PTPTN’s website to ‘enjoy’ the repayment facilities, according to your incomes.
As for unemployed borrowers who aren’t paying because you have no income, Wan Saiful advised you to reach out to PTPTN.
Can the employers deduct my salary without my consent?
Actually, without your consent (as a borrower) according to Employment Act of 1955, PTPTN cannot make such salary deductions.
Wan Saiful explained: “... borrowers had consented in the agreements to make repayments through whatever schemes set by PTPTN, including salary deductions. Therefore, the legal provision is there already.”
Due to the backlash though, Maszlee decided that this repayment scheme will be put on hold until they receive feedback from all stakeholders.
Okay, if this happens, how much will PTPTN deduct from my salary?
Good news is if you’re earning below RM2,000, you don’t have to make PTPTN repayments until your salary exceeds the said amount. Also, for those who are earning from RM2,000 to RM4,000, the repayment is actually quite affordable.
Emm… got discount or not?
It’s possible to get one but only until the end of this year. You should be getting an email from PTPTN that offers the following:
If you settle all of your PTPTN loan, you can get 20% off. You’ll still get 10% off if you pay at least 50% of the loan amount; or when you make payment via direct debit or salary deduction.
The year is about to end so do take this opportunity.
If this scheme takes place, are there any repayment exemptions?
YES. If this scheme is realised, there are exemptions for PTPTN borrowers (you), if you fulfil these set of requirements:
- A full-time bachelor's degree, that is completed on time.
- Graduate with first-class honours in 2019.
- A member of the B40 and M40 income group.
If you’re a PTPTN borrower over the age of 60, your loan will be abolished or written off. But you need to be earning between RM2,000 to RM4,000 a month and have been consistently repaying your loans over the past 3 years before turning 60.
Hmm… since the repayment scheme tak jadi, should I still care?
You should care if you’re a PTPTN borrower. The least you can do is pay the loan back and not take advantage.
If you keep delaying payments you’ll be subject to the Central Credit Reference Information System (CCRIS) blacklisting. This might affect your credit ratings should you wish to obtain a housing loan in the future.
If you’re struggling to pay, it’s advisable to talk to PTPTN officers to resolve your issue.
This article is brought to you by Loanstreet.com.my.
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