Education Loans

Bank Rakyat Al-Falah Education Loan

Terms

  1. Malaysian nationality
  2. Age 18 years and above until 60 years old (If refinance – up to 65 years old.
  3. Not declared bankruptcy or blacklisted.
  4. Borrower have closed relationship with the student.
  5. Student who have fixed income and employed are eligible for the loan application. (Not full-time study)

Period of Payment

  • Maximum up to 15 years.

Payment Method

  1. Biro Perkhidmatan Angkasa (BPA)
  2. Deduction of salary (PGM)
  3. Delayed cheques (PDC)**

Employees Provident Fund (EPF Account II) Withdrawal Scheme For Education Financing


The withdrawal scheme allows EPF members to withdraw from their account II of the EPF Fund to pay tuition fees for their children or for themselves to pursue further studies at any local or overseas higher educational institution.

Withdrawals for a member’s children’s education were introduced on 1 April 2000 and for member’s education on 2 January 2001.

Applicant’s Eligibility

  • Members are allowed to apply for withdrawal if they or their children are not receiving any full or partial scholarship/financial aid for education from any organisations.
  • In the case where a member or their children obtains a study loan, withdrawal can be made to settle the outstanding balance of study loan only on further condition that the Study Loan Agreement is executed on or after the effective date of this Education Withdrawal.

Purpose of Withdrawal
Withdrawal can only be done for the following purposes:

  • To make payment for tertiary study fees (which includes tuition, practical training, computer laboratory and library fees, thesis examination fees, and final examination fees), and
  • Flight tickets for the purpose of travelling To the place of study

Conditions for Withdrawal of Fund

  • Type of Courses
    Applicants / or their children must have registered for any academic / professional / vocational courses at one of the institutions of higher learning mentioned below.
  • Levels of Education
    This withdrawal can be used to pursue one of the following programmes:
    Members : Diploma, Advanced Diploma, Bachelor’s Degree, Master’s Degree, PhD or any of the its equivalent
    Member’s children : Bachelor’s Degree, Master’s Degree, PhD or any of its equivalent
  • Courses that are allowed under the EPF Withdrawal Scheme
    • Local Higher Educational Institutions
      1. Academic Courses pursued either full time, part time or through distance learning. Courses of study that are offered by:
        1. Public universities;
        2. Government institutions of higher learning such as polytechnics and community colleges or any other higher education institutions under the jurisdiction of Central or State Government agencies;
        3. Private higher educational institutions approved by the Private Higher Education Management Sector, Ministry of Higher Education (MOHE) or the National Accreditation Board (LAN/MQA);
        4. Branch campuses of foreign universities established in Malaysia
      2. Professional Courses
        Courses of study that are approved by the Training Division, Public Services Department (PSD) or any other education accreditation board which are recognised by the Government to be at par with a Diploma, Advanced Diploma or Bachelor’s Degree.
      3. Skilled / Vocational Courses
        1. Courses recognised by ‘Majlis Latihan Vokasional Kebangsaan (MLVK)’ to be at par with a Diploma (Level 4) and Bachelor’s Degree (Level 5)
        2. Commercial Pilot Licence with Instrument Rating Course (CPL/IR) with Frozen ATPL offered by the Flying Academy which is approved by Jabatan Penerbangan Awam Malaysia
        3. Master and Chief Mate on Ship Of 3000 GT or more offered by Akademi Laut Malaysia (ALAM)
        4. Combined Chief And Second Engineer 3000 KW or more offered by ALAM
    • Overseas Higher Educational Institutions
      Withdrawal is allowed for full-time study courses pursued abroad offered by overseas higher educational institutions, subject to the approved level of education.
    • Distance Learning and On-line Programmes with Higher Educational Institutions Abroad
      Withdrawal is allowed for distance learning / online programmes that are conducted by overseas institutions in collaboration with local private institutions which are approved by the Ministry of Higher Education. Courses pursued directly with overseas institutions or through a local agent will not be considered.
    • Professional Courses
      Professional courses approved by the Public Services Department (PSD) such as ACCA & CIMA and other approved courses which involve lecturer-student face to face learning interaction can also be considered under the withdrawal scheme.
    • Franchised Programmes
      • Public universities’ franchised study programmes conducted by private higher educational institutions
      • Overseas institutions’ franchised study courses conducted by local private higher educational institutions which have the approval of the Ministry of Higher Education

Types of Withdrawals
Members are allowed to apply for withdrawals to pay for:

  • Tuition* fees which have not been paid to the institution of higher learning; or
  • To reimburse the tuition fees which you have paid to the institution of higher learning based on the payment receipt issued by the institution, with the condition that the date of the application does not exceed one year from the date of the payment receipt; and you must still be pursuing the course concerned; or
  • To pay for the outstanding tuition fees to the educational institution, subject to the effective date of this Education Withdrawal; or
  • Outstanding education loans which was made with any organisation that are licensed under the Bank and Financial Institutions Act 1989 (BAFIA), Bank Rakyat, Jabatan Pendidikan Awam (JPA) or also known as Public Services Department (PSD), MARA, PTPTN, State Foundation, State Education Foundation or any licensed operative society registered with ‘Bahagian Pembangunan Koperasi’ provided the loan is made under your name or your child’s name or both. (*all fees charged by the institution including hostel fees as well as one-way air fare)

Amount Entitled for Withdrawal
Members may withdraw the maximum amount of the total fees or the entire amount in account II, whichever is lower.

Frequency of Withdrawal

  • Members can apply for this withdrawal:
    • every semester; or
    • every academic year (one withdrawal per academic year); or
    • the overall module fees
  • You can apply for this withdrawal once every semester / academic year / entire module fees for every child.
  • You can also apply for this withdrawal jointly with your spouse to finance your children’s education.

Mode of Payment
Basically, there are three modes of payment made by the EPF under this scheme.

  • Payment is made to the local institution of higher learning through a banker’s cheque to the university concerned.
  • Payment for reimbursement of tuition fees is directly credited into the member’s bank account. (For more information regarding direct payment to your bank account and the list of banks appointed by EPF, please refer to ‘Direct Crediting into Member’s Bank Account System’)
  • Payment to settle the study loan is made through a banker’s cheque payable to the financial institution concerned.

Loan Application Procedure

  • Withdrawal Form
    Members are required to submit a duly completed Form KWSP 9H (AHL) which can be obtained from the nearest EPF counter.
  • Supporting Documents
    This form must be submitted with the following original and photocopied documents:

    • Letter of Offer from the institution of higher learning (for first time applications only)
    • Confirmation Letter (of enrolment) from the institution of higher learning for you or your child (for the first and subsequent applications in the same learning programme as stated in the Offer Letter)
    • A copy of the EPF member’s identification card / military identification card or the following identification cards affixed with your right and left thumbprints:
      • MyKad
      • Police identification card and a letter from your employer confirming that the number and identification card number belongs to the same person
    • Academic qualification certificates such as SPM, STPM, degree and other related qualifications
    • Approval letter to conduct the course issued by the Private Education Department, Ministry of Higher Education (PEDMOHE) to the private institution of higher education, if applicable
    • Student card and examination result slip from the previous semester / academic year
    • Other related documents as requested by the EPF from time to time

    In the case of Children’s Education Withdrawal Scheme, additional documents are needed. These include:

    • A copy of your marriage certificate (if an application is made together with your spouse)
    • A copy of your child’s identification card and birth certificate
  • Reimbursement of Tuition Fees to Institutions
    • For reimbursement of tuition fee, an application must be submitted within a year from the date the payment receipt of the tuition fees which is issued by the institution concerned
    • For education loan repayments, a statement on the outstanding amount must be provided for such applications

Enquiries and Contact Details
For enquiries or further information on the withdrawal applications:

Customer Service Hotline: 03-8732 6000
E-mail: enquiry@epf.gov.my
Website: www.kwsp.gov.my


9 Responses to “Education Loans”

  1. can i loan rm158,000.000 for study in pilot course?

    • What type of loans that you would like to apply for? If you applied through bank loans it would be possible..

  2. How long does it will take to get the education loan if I applied through bank loans?

    • Hi Lyna,

      The period for a bank loan to release varies by each banks. Typically, a personal loan will be approved within a week. As for education loans a bit longer than the personal loans.

      Once again I said, it depends on which banks you would like to apply for and please study thair packages before any decision is made.

  3. how is the repayment method for the bank?

  4. dear blue wings, I’ve completed my PPL beginning of this year and I am currently doing mY CAA6 and CAA2 papers. My problem lies in that I am underfunded when it comes to flying and I’m looking for a loan that would enable me to continue my single and multi engine training.

    I’ve exhausted my Mom’s EPF and have taken some personal loans to pump in money into my flying. My mom is a single mother and she’s supporting my education fully. I’m about 80K short for completing my full course.

    any ideas?

  5. Hi Blue Wing, so which loan are u loaning now? what is the interest for personal loan and education loan?

  6. Is the Bank Rakyat I-falah loan support CPL course??

  7. Thanks pal..now i know about 2-3 things..

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: