PETALING JAYA: The government's move to extend the deferment of PTPTN loans by six months will automatically extend the repayment period for all borrowers by the same length.
This will be done through the restructuring of the National Higher Education Fund Corporation (PTPTN) loans and is exclusive to borrowers without arrears prior to the deferment.
"Borrowers with arrears prior to the announcement of the six-month deferral are required to consult with PTPTN to restructure their loans.
"For conventional borrowers, loan restructuring will be implemented through the exchange of Ujrah," the corporation issued in its FAQ.
Ujrah is a flat-rate service charge of 1% annually based on syariah principles.
On March 18, the government announced a three-month deferment of PTPTN loans due to the Covid-19 pandemic. However, on Monday, Prime Minister Tan Sri Muhyiddin Yassin said the three-month deferment would be extended to six months until Sept 30.
This move will involve collection amounting to RM750mil, benefiting almost 1.5 million PTPTN borrowers.
The corporation said borrowers who had been repaying through the Credit Counselling and Debt Management Agency (AKPK) are required to consult with the agency on the matter of deferment.
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