View Full Version : Study loan

08-02-2006, 05:05 PM
My friend told me that he went to a few banks in malaysia and it is so difficult to obtain a study loan in malaysia to study overseas.

Why is it the banks don't encourage giving study loan ?

09-02-2006, 09:06 AM
The study loan is a high risk loan, from the bank's point of view.
High risk because it is not backed by tangible security .. just the security of a guarantor, who may not be worth the cost of the paper and stamp duty.
Repayment is made only after the student finishes the course, which is > 3/4 years later.
The interest charged on the amount drawndown during the study period can be settled by another party but this is usually not done. So a study loan can stretch > 5 years and, depending on the loan amt which can be substantial, the poor new graduate cannot afford to pay the instalments.
How much can a new graduate earn, let alone find a good job?
That's why parents take out higher education insurance and other forms of savings for their kids.
If you are looking for funding for your MBA .. then do sales part time .. the commision earned can do some good.

sabaidee ..

09-02-2006, 11:58 AM
True la. We have to also think on the bank's point of view. They're loaning you a huge sum of money. It is a big gamble for them, so they need to make sure that you're capable of repaying the loan after graduation.

Alternatively, you can also choose to study in some local colleges where tuition fees are relatively cheaper. Study a diploma first and then a degree. One step at a time. Money should be no barrier to proper education.

If applying bank loans is not within your ability, then seek other alternatives. Cheers!