A total of 1.25 million borrowers from the National Higher Education Fund Corporation (PTPTN) loans are listed in Bank Negara Malaysia’s Central Credit Reference Information System (CCRIS).
Of which 55%, or 690,000 are delinquent.
PTPTN started listing its borrowers on CCRIS on June 2015 as a way to encourage borrowers to pay up their student loans.
CCRIS is a database that houses all credit loan information and is referred to by most financial institutions before any new loans are extended.
In Malaysia, PTPTN loan repayment begins six months after financing ends to give the borrowers some time to look for a job before they commence repayment on their loan. Defaulting on your PTPTN student loan can result in serious repercussions, which could start off your working adult life on disastrous note.
For instance, you may find your credit card or personal loan application rejected by the bank.
And you may never get a housing loan if they see that you have defaulted on your PTPTN loan on your CTOS or CCRIS report.
As you have had a track record of not paying an existing loan, they may not be confident in your ability to pay a new one on time.
Therefore, it’s very important to understand how to deal with this changes.
Here are the common FAQ related to CCRIS caused by PTPTN defaults.
Who will be listed in CCRIS by PTPTN?
All borrowers who are supposed to make refunds after 6 months of expiration of the loan will be listed in CCRIS.
Further Read: 2018 How to Check If You Are Blacklisted by PTPTN
Can a CCRIS report record the borrower reviewed with PTPTN?
No. Checks should be made directly at the counters and kiosks of any branch of Bank Negara Malaysia (BNM) nationwide.
What information is recorded in CCRIS?
The information recorded in CCRIS is a monthly installment record for the last 12 months.
Further Read: How To Repay PTPTN Through Salary Deduction
What should the borrower do to ensure the record of PTPTN loan at CCRIS does not give any problem to his loan application at bank or other financial institution?
The borrower has to pay consistently on schedule to avoid arrears in order to ensure the CCRIS record is in good standing. If records in CCRIS indicate any arrears in the month, it is probable that loan applications will not be considered by financial institutions. However, the approval of a loan applied is subject to the discretion and jurisdiction of the financial institution.
Can borrowers consult with Bank Negara Malaysia (BNM) or other financial institutions regarding his PTPTN loan record in CCRIS?
Borrowers can not negotiate with BNM or other financial institutions regarding PTPTN loan records at CCRIS. All negotiations on PTPTN loans whether settlement of loan or loan rescheduling should be made with PTPTN. Borrowers can contact Careline PTPTN at 03-2193 3000 or be present at any branch of PTPTN throughout the country.
What should the borrower do if he wants to issue his PTPTN loan record from CCRIS?
The borrower should make full settlement of the loan and records in CCRIS will be updated to ‘FINALLY’ within seven (7) working days from the updated payment date in the PTPTN statement.
What actions should the borrower do if unable to make full settlement of the loan debt?
The borrower must settle the entire delinquency and make a monthly repayment on a regular basis (consistent) according to the set schedule of the Refund (JBB). Borrowers with financial difficulties are advised to negotiate with PTPTN for rescheduling of debt and subsequently making monthly payments on a regular basis.
How does the CCRIS record of borrowers who make scheduling / restructuring show a good position?
The credit record of the borrower will show a better position when making a regular payment for 6 consecutive months without any delinquency.
If the borrower has made a total payment of the arrears, will the record be better and the bad records will be removed from CCRIS? Does the borrower still have the opportunity to make a loan with another financial institution?
The current month’s record will be good. However, information on the number of overdue installments over the last 12 months is still reflected in the CCRIS credit report. Approval of a loan applied is subject to the discretion and jurisdiction of the financial institution.
When should the repayment date be made so that the records on CCRIS credit reports are good every month?
Loan refund should be made during the month. To ensure that the transaction is updated in the statement in the current month, transactions through agents / third parties must be made by the 27th of every month. Transactions after that date will be updated in the statement the following month. However, transactions made until the end of the month through the PTPTN counter will be updated in the statement in the current month.
If the borrower makes a loan repayment, when will the borrower’s record be updated within the CCRIS?
The payment record will be updated by PTPTN on the next delivery date of the report, which will be no later than the 15th day of the following month.
Why is the CCRIS record bad despite a loan repayment made every month?
The CCRIS record is still bad as the borrower has arrears due to:
Payments are made later than the set schedule. For example, the start-up payment is made after 1 year loan expires whereas the borrower is supposed to start paying after 6 months after the loan expires.
Payment is less than the amount set out in the Refund Schedule (JBB).