KUCHING: Attractive incentives and good sense of responsibilities among borrowers have enabled Yayasan Sarawak to enjoy a loan repayment rate of about 80% annually.
Yayasan Sarawak director Azmi Bujang is pleased with the repayment rate of its loan recipients each year, saying that the defaulters only comprised about 0.1%.
The state education foundation allocated between RM60mil and RM70mil annually for students to pursue their tertiary education and it aims to collect around RM10mil per year in loan repayment.
“Yayasan Sarawak is lenient and very understanding when it comes to collecting the loans but overall, we are happy with the performance of the loan recipients,” he told reporters after the “Ramah-tamah Aidilfitri” event at the Sarawak Foundation here.
Chief Minister Datuk Amar Abang Johari Tun Openg and wife Datin Amar Jumaani Tuanku Bujang joined hundreds of guests and foundation staff to celebrate the event.
Abang Johari also presented duit raya to underprivileged children.
On the loan repayment incentives, Azmi said first-class honours achievers would enjoy a 75% discounts, while those who achieved second-class honours only need to pay half of their loans.
He added that those who regularly made their payments would receive a 25% discounts.
“This will encourage students to pay back their loans, as well as to do well in their studies,” Azmi said.
When asked on actions against loan defaulters, he said the foundation would continue to remind borrowers through phone calls and letters from its lawyers.
Court action would be the last resort.
“Loans are given to deserving students who did not receive financial assistance to pursue tertiary and technical educations.
“We always disperse our fund immediately to successful applicants. It is only fair that borrowers repay their loans once they completed their studies and gain employment.
“They should honour their contract so that the money can be used to help other students,” he added.
Azmi said the foundation was seeking approval from the board to widen the scope of assistance that could be given out to deserving students.
Since 1971, Yayasan Sarawak has spent over RM600mil to assist more than 150,000 students in the state.