Budget 2015: PTPTN loan borrowers speak out on credit reduction

He also announced that borrowers who fail to do so can still obtain a 10 per cent discount if they make continuous payments for 12 months until December 31 of next year.

The announcement of the 20 percent discount drew mixed reactions from PTPTN loan borrowers.

Amzar Anaqi, 25, said the discount will encourage more loan borrowers to settle the repayments.

“At the very least, it will make those who have not made a single payment to repay the loan. Even if the discount is not much, it's still okay,” said the self-employed from a production sector.

Izzana Syazana, 26 a civil servant from Sabah said the discount will lessen the burden of those who are jobless or without permanent jobs.

“After graduating in October 2011, I tried to repay my loan. Sometimes I would pay RM50 or RM100 a month. I have not been able to make consistent payment as my pay is just enough to make ends meet.

“I agree with the discount for PTPTN loan borrowers as it will lessen the burden of those a salary of RM2000 and below. This is also in line with the rising cost of living expected at the end of 2014 and 2015.

It is quite worrying especially for PTPTN loan borrowers having to make repayments every month,” said Izzana, who also operates a small business.

Meanwhile, Intan Nur Diyana, 23, a secretary who hails from Cheras said the discount is still insufficient for those wanting to make full repayments since it is difficult for graduates to get into the job market these days.

“The discount is fine, but it is hard for them to get a job and to make full payments until end of March next year. It is especially difficult for those with a starting salary of RM2,300. It's not enough to make a full payment with a loan value of, at least RM19,000,” she said.

Kamal Muhsin, 26, a student pursuing his bachelor’s degree at Universiti Teknologi MARA (UiTM) said the discount will encourage PTPTN loan borrowers to make the full repayments.

“Nevertheless, it it is still hard for fresh graduates to repay the loan due to financial instability as finding jobs are difficult for fresh graduates," he said.

PTPTN was established in 1997 and to date, 2.1 million borrowers have taken loans worth RM47.8 billion.

“However, as at Aug 31 this year, only RM5.36bil or 46 per cent of RM11.76bil has been collected,” he said when tabling the Budget at the Dewan Rakyat in Parliament.