PTPTN Loans Conversion to the Islamic Loan System of Ujrah

by BerryBerryTeacher

in Berry Recommendation (Recommendation)

For PTPTN loan holders who are repaying the loans now. Do make sure that you are aware of the possibility to convert to the syariah-compliant methods of financing the scheme through the Ujrah system, which can have great potential savings. Berry Berry Easy will briefly describe it here, the deadline for now is 30th September 2011, so act fast.

Ujrah System for the PTPTN Loans


What: Payment of the Perbadanan Tabing Pendidikan Tinggi Nasional (PTPTN) loans using the Ujrah system.
Benefits: Administrative charges is reduced from 3% to just 1%.
Who’s eligible: Loan conversion is available to borrowers who have not settled their loans as of June 1, 2008.


  • For those who wants to save some money, you may try to convert your loans from the conventional loan to the Islamic system and syariah-compliant study loan system known as Ujrah.
  • This is not applicable to new PTPTN borowwers as the current system already uses the 1% administrative charge system. (It should be noted that the 1%/3% are merely administrative costs and not interests.)
  • Note that although this is an Islamic loan system, it is applicable also to non-Muslims.
  • This initiative arise as the Malaysian cabinet decided to reduce administrative charge of the PTPTN loan repayment in 2009.
  • About 800,000 from the current conventional study loans from PTPTN.
  • After the conversion, the accounts will be affected all the way backdated to 1st June 2008.

Those who have:

  1. Changed their course of study
  2. Obtained loans from their respective sponsors
  3. Currently having legal actions taken against them
  4. Have settled their loans in full

will not be eligible for the conversion to the Ujrah loan system.

For those who are not eligible for the loan conversion, they can lodge an appeal. [Unverified: Deadline is said to be at End of November 2011]

It should be noted that those who graduated with First Class Honours do not need to pay back the loan as the PTPTN loan will be converted to a scholarship.

For information on the conversion of the conventional PTPTN loan to the Ujrah loan system, do visit:


The PTPTN hotline is: +603-2080 4455

What to do to apply for the conversion?

  1. Register at the PTPTN website as stated above, and provide your I/C number and e-mail address.
  2. From the link sent to your registered e-mail address, you must update your details. Failure to do so will result in the aplication to not be processed.
  3. Print and sign the “offer document” sent to your registered e-mail address.
  4. Send the full set of documents to PTPTN within 90 days of the offer date.

How would the Ujrah be calculated:

Total value of Ujrah = [Ujrah Rate (1%) / 12] x Total Payment x Payback duration (Months)

Have you converted your loans? Did you meet with any difficulties in the process? Berry Berry Easy would like to congratulate the efforts in reducing the administration fees for PTPTN loans, it’ll help to reduce the burden of young loanees.

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