PTPTN Loan Alternative : SPP1M

SPP1M stands for Skim Prihatin Pendidikan 1 Malaysia which is a funding scheme for deserving students who want to pursue academic qualifications. It is meant as top-up funding for other scholarships or loans which are already implemented. For instance, those students who are already benefiting of a PTPTN loan or of other type of scholarship can also apply for SPP1M if the existing financing does not cover their needs and if they are eligible.

SPP1M is available for Malaysian students who want to pursue a bachelor’s degree in business (insurance, accounting and taxation, finances, insurance, banking), law, computer science, science, engineering and architecture or a master’s degree in medicine (clinical medicine, dentistry, aviation medicine or pharmacy). Students have to make proof of their admission in a higher education institution and to take up courses accredited by the  Malaysian Qualification Agency. The list of approved public and private higher education institutions is available and students must check their eligibility before applying.

SPP1M is available starting with February 2013. At first, the approval process was lengthier, but this year students can expect their application to be processed in about one month. They have to apply directly at the financing institutions which currently include RHB Bank and Maybank.

Students are encouraged to study the offer of the financial institutions carefully and to select the one that best covers their needs. They can only apply for one SPP1M loan. If they want to apply for another one, they first have to settle their first loan because two similar loans under the same scheme are not possible. If a student is rejected, he can either appeal the decision at the financial institutions or he can apply again at a different institution.

Each financial institution can have its own rules and regulations. It is common for them to ask for an insurance policy in the name of the recipient. However, the premium for this policy can be included in the financing. It is important to know that the total financing (potential premium included) can’t be higher than RM 150.000 for students pursing master’s degrees in medicines and RM 100.000 for students pursing bachelor degree in finances, law, engineering, computer science, science and architecture.

Applicants for SPP1M need two guarantors, but they don’t necessarily have to be family members. However, they have to meet the criteria established by the financial institution and they have to have a clean police record and bankruptcy record.

SPP1M vs PTPTN

The money is going to be given directly to the university and the first disbursement can take place immediately after the disbursement checklist is validated. For further disbursements, the students need to update their information periodically and to meet the criteria established by the bank. Funding for those with poor academic results or for those who drop school altogether is suspended.

Repayment should commence six months after the graduation, regardless on the financial situation of the recipient. The interest during the study period is BLR-1 and the interest after the 6 months grace period is BLR+0. The loan has to be repaid even if the student does not graduate or becomes academically inactive. The academic status of all SPP1M recipients is communicated to the bank by the university, so the disbursements will stop for those who don’t qualify anymore.

For more information on SPP1M, please email to spp1m@penerajuedu.com.