KUALA LUMPUR: The National Higher Education Fund Corporation (PTPTN) will link loan defaulters with the Central Credit Reference Information System (CCRIS) with the cooperation of Bank Negara this month.
Second Education Minister Datuk Seri Idris Jusoh said this will help control rising household debt.
He said the measure would affect approval of credit such as personal loan, credit card and higher purchase by financial institutions for PTPTN borrowers with poor repayment track record.
"The financial institutions will evaluate and analyse each loan, payment balance, repayment and payment arrears. It will influence their decision, whether to approve the application or reduce the loan amount applied," he told reporters at a PTPTN Aidilfitri gathering, here today.
Idris said the CCRIS was not meant to burden PTPTN borrowers but to promote the culture of good repayment to enable other students to benefit from the education financing facility.
Idris said PTPTN had also outlined a number of solutions for errant borrowers including those who had been asked to settle the outstanding sum in full to the PTPTN and those who had made a commitment to pay the monthly instalment by salary deduction or standing instruction through the bank.
Idris said PTPTN had also outlined a number of solutions for errant borrowers including those who had been asked to settle the outstanding sum in full to the PTPTN and those who had made a commitment to pay the monthly instalment by salary deduction or standing instruction through the bank.
"Apart from that, borrowers also have an alternative to reschedule or restructure their loan repayment based on the conditions set by the PTPTN," he said.
As at June 30, the PTPTN had approved education financing to 2.2 million students involving RM49.9 billion.
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