How to Clear Your PTPTN Loan? - Direct Lending Malaysia

How to Clear Your PTPTN Loan?

In the recent news, PTPTN borrowers whom are listed in the CCRIS record are allowed to buy their first home. However, PTPTN borrowers who have overdue education loan will continue to face negative consequences such as unable to get car and personal loans or even credit card and the worse case scenario is to face legal actions.  While travel ban restriction has now been lifted, the possibility of it being reintroduced is being discussed in the recent public consultation.

We are pretty sure that everyone wants to avoid all of these unnecessary inconvenience, right? What can a borrower who has failed to keep up with the loan payment do to clear off the overdue PTPTN debt? Here we share 3 tips that you can consider:

1. Generate Side Income

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Having a full time 9-5 job can be taxing at times. But what if we tell you that you can generate some side income at home, absolutely flexible to your own time schedule? Well, many digital nomads these days are making big bucks by using their digital skillsets. From influencers to YouTubers to copywriters, the possibilities are endless. Always start with something small in the beginning. It can be from creating a 5 minutes cooking tutorial or sharing a Vlog on YouTube. As long as the contents are relevant and updated with the viewers’ preferences, slowly but surely your efforts will catch up.

You can sign up on freelancing sites like Upwork. These platforms can help to connect you with clients globally and this would be a great opportunity to expose yourself and sharpen your skillsets whether it is writing, translating, designing or even media production. If writing or designing for instance is also your hobby, then this is definitely a win-win situation.

If you have extra savings and would like to go further, then why not use it to start up a side business? You can start by selling and promoting your products on online platforms like Lazada and Shopee. The start up fees are relatively low as compared to an offline store. You can sell anything online as long as it is legal. For instance, you may order stocks from China on platforms like Taobao, Alibaba, Tmall, etc. whereby stocks are priced low. Then, when promoting on local platforms, tailor your product offerings according to the local preferences. This can vary from product description to the packaging of the products. Overall, these recommendations are a good way to generate an extra stream of income.

2.Use your KWSP Funds

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Although this fund allocation may be dedicated for your retirement days but using a fraction from your KWSP account to pay off PTPTN is still an advisable option. For instance, you may either withdraw the total tuition fees or choose to pay off an outstanding education loan amount from your KWSP Account 2. Rather than receiving late payment charges or worst case scenario legal action, the usage of your KWSP funds would be a feasible choice to free up some of your pending payments.

One of the obvious benefit of using your KWSP funds to pay off PTPTN is that it allows you to have a prompt credit record payment on your CCRIS. This would benefit you when you want to apply for a credit facility like loan or credit card in the future.

3. Apply a Low Interest Koperasi Loan 

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In case you have a relatively large overdue PTPTN loan amount and using EPF withdrawal is not sufficient to settle the overdue, you can apply for a low interest koperasi loan. In some cases, koperasi loan interest rate is much lower as compared to unsecured personal loan from commercial banks. Koperasi loan has a more lenient approval criteria compared to bank’s personal loan as repayments are made through ANGKASA or salary deductions. Currently, a koperasi loan is available only to civil servants in Malaysia.  Please bear in mind, your commitment still exists. Make sure that you pay on time of the new loan.

As consumers, we need to practice extra vigilance in applying loans with legal financiers. By identifying the warning signs the loan you are getting is a scam, we can avoid being scammed by unauthorised money lenders.


In general, PTPTN loan is a good study loan option in Malaysia which offers a relatively low interest rate. Considering the high number of unpaid loan repayments by PTPTN defaulters, it is best for borrowers to start servicing their education loan. Having PTPTN to be discontinued due to lack of funds is the last thing that everyone would want. Let’s be fair to the future generation and be a responsible borrower. After all, a debt is a debt.

At Direct Lending, our service to you is completely 100% free of charge. We are a platform offering personal loan facilities to both private and public sector. Our partners are all reputable and licensed companies. For more information, check your eligibility for free by visiting our website at

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