OCBC Bank Introduces Education Loan with Low Interest RateChen Wan Lim
KUALA LUMPUR: OCBC Bank (M) Bhd has launched a new study loan for students with effective interest rates starting from as low as 6.14% per annum.
In a statement, OCBC Bank said the move was in line with the bank’s entrenched position as the key driver of study loans among commercial banks in Malaysia, and the only foreign financial institution to offer such a facility.
OCBC Education Loan offers students up to RM250,000 in financing, allowing them to liberally supplement the maximum amount offered through the government-backed Perbadanan Tabung Pendidikan Nasional (PTPTN) loan scheme and minimise the use of EPF savings for the purpose.
OCBC Bank head of consumer financial services Lim Wyson said students should not too quickly forgo their tertiary education locally or abroad, settle for more affordable courses or pay higher interest through personal loans.
“The introduction of this new OCBC Education Loan meets the growing demand for an enhanced bespoke loan for tertiary education. It fills a gaping void considering the ever-growing group of students out there that are in need of more funds for overseas education and post graduate studies.
“This includes both full-time and part-time students who might need to fund shortfalls to their respective available PTPTN funds,” he said.
Lim said the bank was the first commercial bank to bring back study loans to the market in 2011 since they were discontinued around 2003.
“And in 2015 we introduced the country’s first study loan featuring fixed deposit as collateral, testament to our long-standing commitment to making study loans available to those in need,” he said.
OCBC Education Loan does not attract any penalty charges for early settlement of the loan, and has no processing or legal fees. The loan is available for courses at selected education institutions in Malaysia and overseas and is repayable over a tenure of up to ten years with extended interest repayment of up to five years.