Just a random photo showing my PTPTN load account.
So the government still owe me R\MYR172.53, is it?
Back to the topic, PTPTN budget discount. With the Budget 2013 announcement, our Prime Minister Datuk Seri Najib Razak introduced a lucrative plan to encourage repayments of PTPTN loan. Although everybody knows that this government need money desperately.
Now, here are the options:
1) A discount of 20% from the total loan will be given to borrowers who settle their loans in one lump sum within 1 year from Oct 1st 2012 until Sept 30 2013.
2) For those repaying their loan consistently according to schedule from Oct 1st 2012, a discount of 10% annually would be given.
(from NST papers)
Having graduated 1-2 years back with a PTPTN loan amounting to RM24,170, this offer has gotten be thinking which would be the smarter option or choose to stay with my existing plan - to ignore the loan. I know it might sound irresponsible but with the current salary bracket, i believed it is still a burden to start paying back the loan.
Needless to say too much, we'll do a simple calculation here. Let's assume that your monthly salary is MYR3,000.
- Electricity Bill + water bill = MYR100
- Internet access = MYR100
- Daily meals (let's assume MYR15/day) = MYR450
- Petrol (assume the average usage) = MYR250
- Car loan (minimum) = MYR300
- Miscellaneous (daily producst) = MYR100
- Ciggs (for those who smoke) = MYR300
- Insurance (if any) = MYR500
- House (just assume renting just a room) = MYR200
- Allowance (for your parents) = MYR300
- Mobile phone bills = MYR100
Wait ! It's already amounted MYR2,700. We have not deducted the EPF, Socso & also the income tax. What else? What about Astro? McDonald's? KFC? GSC? Or just assumed we do not spend on those entertainment, but how about the car maintenance? Any medical charges when you're sick? So this also ends the dream of those who wish to have saving for a new car, new house or even those who are planning to start building their new family. Wait a minute!! Not most of the people's salary is MYR3,000! Toughness seems overloaded.
Do you know what the salary range is for Malaysian?
Fresh Graduate :
from MYR1,500 to MYR2,500 (In compensation for the time you spent to get a piece of paper that thicker and harder than toilet paper)
Teacher:
from MYR2,500 to MYR3,000 (exclusive of illegal part-time tuition)
IT Engineer :
from MYR2,500 to MYR3,500 (if you are Mark Zuckerberg - Facebook's founder, then your salary should be more than this)
Postman :
MYR700 to MYR1,000 (Next time please do not let your dog bites a postman, they might not able to cover back their medical fees for that range of salary)
Driver:
MYR1,000 to MYR 1,500 (exclusive of Formula 1 drivers & Mat Rempit)
Doctor:
MYR6,000 to MYR10,000 (that's why people said it is okey to die, not okey to be sick)
Factory Operator:
MYR900 (should thank god the oxygen is still FOC at the moment)
Loan Shark (Ah Long) :
Minimum MYR5,000 for illegal operating ( may earn up to billions for big shark that has finance company or bank license )
Well to be honest, i am quite a lucky person. I am currently driving the third car in my life which is under my name (ownership) now without paying a penny. So carrying the burden of car loan is not necessary for me at the near future. On top of that, my parents have just cleared my PTPTN loan in order to entitled for the 20% discount which the promotion will be expired by end of this month. But of course i would need to pay back my parents slowly for this.
Not a bad idea to take this lucrative plan offer by our Prime Minister. Not because mind settled, but thinking for a bit further you will realize something. I have found an interesting calculation comparing 3% fixed FD with the PTPTN. Take a look of this example :
Loan: RM 37,500
Duration of repayment: 15 years
Interest rate: 1% flat rate. (This means no matter how much I repay, the interest rate will be calculated based on the initial amount that I borrowed and NOT the balance loan).
Duration of repayment: 15 years
Interest rate: 1% flat rate. (This means no matter how much I repay, the interest rate will be calculated based on the initial amount that I borrowed and NOT the balance loan).
| Year | Loan | 3% FD interest | Total | Payback |
| 1 | 37500.00 | 1312.50 | 38812.50 | 2875 |
| 2 | 35937.50 | 1078.13 | 37015.63 | 2875 |
| 3 | 34140.63 | 1024.22 | 35164.84 | 2875 |
| 4 | 32289.84 | 968.70 | 33258.54 | 2875 |
| 5 | 30383.54 | 911.51 | 31295.05 | 2875 |
| 6 | 28420.05 | 852.60 | 29272.65 | 2875 |
| 7 | 26397.65 | 791.93 | 27189.58 | 2875 |
| 8 | 24314.58 | 729.44 | 25044.01 | 2875 |
| 9 | 22169.01 | 665.07 | 22834.08 | 2875 |
| 10 | 19959.08 | 598.77 | 20557.86 | 2875 |
| 11 | 17682.86 | 530.49 | 18213.34 | 2875 |
| 12 | 15338.34 | 460.15 | 15798.49 | 2875 |
| 13 | 12923.49 | 387.70 | 13311.20 | 2875 |
| 14 | 10436.20 | 313.09 | 10749.28 | 2875 |
| 15 | 7874.28 | 236.23 | 8110.51 | 2875 |
Note:
- FD rate is assumed to be 3% per annum.
- Payback is RM 2875 per year (RM 2500 + RM 375). RM 2500 is calculated from RM 37500 / 15 years while RM 375 is the interest rate (1% x RM 37500)
Based on the calculated figure above, the total amount of nett interest I could gain from FD while repaying PTPTN monthly or yearly (up to you) is RM 5235.51 (at Year 16 after repaying off all loan).
The amount of 20% discount given is 20% x RM 37,500 is RM 7,500. By simply comparing, it is obvious that going for the 20% is worth it as that's a saving of RM 7,500 compared to RM 5235.51 that may be generated in 15 years time.
The amount of 20% discount given is 20% x RM 37,500 is RM 7,500. By simply comparing, it is obvious that going for the 20% is worth it as that's a saving of RM 7,500 compared to RM 5235.51 that may be generated in 15 years time.
It's just a simple comparison. Whether to take it or leave it is still your own call. You can always refer to the details in the PTPTN website. But remember, 30th September 2013 is the last day for this promotion. Better hurry up if you want it! :
Cheers reader.
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