Student Loans for International Students in Malaysia

Student Loans for International Students in Malaysia

Nearly everyone has a degree to brag about in today’s fiercely competitive business environment. A basic degree puts you on par with the competition, and a master’s degree might provide you an advantage when applying for jobs. Having a degree is now absolutely necessary to get a respectable job. Even though education is crucial to ending the cycle of poverty, not everyone has the financial means to continue their education above SPM.

One of the finest decisions a student can make is to study in Malaysia. First off, studying in Malaysia is relatively less expensive than in other nations. Additionally, as mentioned above, there are several options for students to get financial aid for their studies in Malaysia. Numerous foreign campuses of universities from the UK and Australia are located in Malaysia, enabling international students to pursue higher education at a lower cost.

Overall, Malaysia offers international students a steal-worthy deal with its international campuses and range of available scholarships.
One of the most important investments a person can make before deciding on their future course of action is higher education. Making it affordable will help you avoid burning a hole in your wallet.

To do this, prepare your budget and look into scholarships or financing options. Finding financial support that either entirely or partially covers your overall expenses is not a pipe dream for an overseas applicant who plans to study in Malaysia. Every year, the Malaysian government and its universities provide several scholarships, loans, and other forms of financial assistance to both local and foreign students. Bursaries, grants, education funds, tuition waivers, and loans are the several kinds of scholarships available to overseas students in Malaysia.

There may be financing schemes available to international students attending qualifying Malaysian universities. When studying in Malaysia, a co-signer is typically not necessary. Like with other private education loans, Malaysian students may use the money for living expenses, school-related fees, health insurance, and travel expenses in addition to paying all or a portion of their tuition.
Financial Aid Organizations for Malaysian Students

Financial assistance providers come from different backgrounds when they enter a nation like Malaysia, which has a large influx of international students. They consist of a number of trade groups, private and government-affiliated businesses, and governmental and non-governmental organizations. Popular government-sponsored financial aid organizations include:

• Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN), MOHE
• The Ministry of Higher Education (Scholarship Division)
• JPA Scholarship Program
• State Foundations
• Government Linked Companies
• The Public Service Department Programs (JPA) – Local and overseas
• Kojadi Education Loan to study in Malaysia
• The Star Education Fund
• Yayasan Tunku Abdul Rahman Scholarship
• Kuok Foundation
• Sin Chew Daily Education Fund
• In addition to these, private sector non-governmental organizations (NGOs) in Malaysia offer grants and scholarships to foreign students.

Although many students seek scholarships for overseas students in Malaysia, not every applicant is granted one. A financial loan might be used as a substitute for a scholarship. Students who want to study abroad now have access to a variety of financial options. They are able to pay their tuition, flights, lodging, and other living expenses thanks to these loans. In Malaysia, a guarantor—someone who would guarantee that the loan borrowed is repaid—must be present in order for a study loan to be approved. If this is not the case, Malaysia will not grant the student any type of study loan.

Loan providers in Malaysia are;

• PTPTN Study Loan: Perbadanan Tabung Pendidikan Nasional, or PTPTN, is a government organization that grants study loans to Malaysians so they can complete their post-secondary education. The PTPTN education loan, established in 1997, pays all or a portion of the cost of postsecondary education in the local area, including living expenses. The PTPTN loan is one of the most alluring student loans in Malaysia due to the comparatively cheap borrowing rate. Additionally, your loan will become a scholarship if you get First Class Honors and have a minimum cumulative grade point average (CGPA) of 3.671 or above for your degree. Your loan payment will thus be waived as a result! However, not everyone in Malaysia is qualified for the PTPTN study loan.

• Maybank Education Loan Malaysia: The Maybank education loan is a lending product that offers qualifying students financial support to pay their course tuition costs at colleges that the Bank has authorized. Successful candidates may opt to pay the entire tuition price upfront or only a portion of it. The Maybank study loan is available for programs leading to bachelor’s, master’s, and doctoral degrees. The applicant must pledge their assets, fixed deposits, Amanah Saham Bumiputera (ASB) units, or other appropriate collateral against the facility in order to be eligible.

• AFFIN Bank Education Financing-i: AFFIN Education Financing-i is a financing program for students who wish to pursue higher education at particular institutions or schools that have been chosen and approved by AFFIN Bank. Foundation, pre-university, certificate, diploma, degree, post-graduate programs (Master’s degrees & Doctorates), and other professional courses are all eligible for the bank study loan. The Syariah-compliant Ijarah serves as the foundation for the AFFIN Financing-i study loan (or leasing concept). The “coursework program” done by the lessor (financier) and supplied to the lessee (student) in accordance with the stipulated time period is the underlying asset for the Ijarah contract, which is structured using the usufruct principle.

• KOJADI education loan: The education loan from Koperasi Jayadiri Malaysia Berhad (KOJADI) gives Malaysians the freedom to pursue a certificate, degree, or postgraduate degree either full- or part-time. There are 13 projects and 2 plans in the KOJADI system. Plan 1 enables the candidate to apply for funding to support local further education, while Plan 2 offers to fund the international study.

• Bank Education Loans: The majority of Malaysian banks, including RHB and CIMB, offer personal loans that give the accepted applicant a quantity of money that may be utilized to fund lifestyle improvements for house remodeling, a wedding, or other purposes. Students can use these financing choices bundled as a personal loan as an education loan. Despite this, the effective interest rates are substantially greater than the study loans described above. It varies between 12.31% pa to 24.51% pa. Spend some time browsing the websites of the various banks, though.

If you’re fortunate, you could simply come across excellent cashback offers or inexpensive personal loan rate offers that meet your needs.

What expenses do the student loans cover?

International students may submit an application for a loan up to the amount of their school’s total attendance costs, as assessed by the institution, less any other financial help obtained. The total cost of attendance includes tuition, accommodation, and board, as well as living costs and costs associated with the student’s education, such as books and transportation. All of the loans for overseas students provide the benefit of non-requirement of collateral, flexible repayment terms, and the use of online applications.

Eligibility

International students must enroll at an approved institution in Malaysia in order to be eligible for a loan. In order to seek a degree, certificate, or license, you must also be registered as an undergraduate or graduate student.

Most students will be asked to provide a co-signer in order to be able to successfully apply for the international student loan. The co-signer must be a Malaysian citizen or must have lived in Malaysia for the past two years.

How to apply

Applying for loans for overseas students is a straightforward procedure.

1. Verify your qualification: Check out the eligibility requirements to know if you are qualified to apply for the loan.

2. Application: You can continue with your application if you are matched with a lender. Even if you are not a US citizen, the application procedure is quick. The loan provider will require the required papers and documentation before deciding whether or not to accept you.
3. Documentation: The majority of the time, your lender will need to see these documents. In some cases, additional documentation may be requested from you.

4. Evidence of identification

5. Evidence of residency

6. Academic credentials

7. A valid passport and visa

8. Evidence of enrollment at your university

If necessary, extracurricular certifications
Approval: You will be informed about the interest rates (fixed or variable rate) and payback terms when your application has been conditionally accepted. Your loan application will be authorized and cash will be disbursed after you accept the terms. Normally, this takes six weeks. Before making any choices, you should carefully read the terms and conditions. It might be quite difficult to comprehend. Before agreeing to receive your payments, seek advice from a professional if you have any questions.

I hope that this article on Student Loans for International Students in Malaysia was helpful.