This article first appeared in The Edge Financial Daily on June 12, 2018 - June 18, 2018

KUALA LUMPUR: OCBC Bank (Malaysia) Bhd has introduced a new study loan for students with effective interest rates starting from 6.14% per annum.

The OCBC Education Loan offers students up to RM250,000 in financing, allowing them to supplement the maximum amount offered through the government-backed Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loan scheme and minimise the use of Employees Provident Fund 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 overseas, settle for more affordable courses or pay higher interests through personal loans.

Lim noted that OCBC was the first commercial bank in the country to resume study loans to the market in 2011 as they were previously discontinued around 2003. In 2015, the bank introduced Malaysia’s first study loan featuring fixed deposits as collateral.

The OCBC Education Loan does not attract any penalty charges for early settlement of the loan, and has no processing or legal fees.

It is available for courses at selected education institutions in Malaysia and abroad, and is repayable over a tenure of up to 10 years with extended interest repayments of up to five years.