How the new SPP1M loans work

Published by on Feb 08, 2013, 11:07 am

Skim Prihatin Pendidikan 1Malaysia (SPP1M) or 1Malaysia Education Caring Scheme is a top-up education loan scheme endorsed by the government and is managed by Maybank and RHB Bank (pending). The Yayasan Peneraju Pendidikan Bumiputera (YPPB) is also involved (monitoring students' performance) in this new loan scheme.

For this fund, RM1 billion has been allocated to be disbursed over five years. It will be made available for students in local universities in the second quarter of 2013 and students taking twinning programmes and programmes abroad in mid-2013.


  • Malaysian citizen
  • Taking up medicine, clinical, aviation, dentistry, taxation, accounting, law and Syariah law, engineering, architecture, science, computer science and pharmacy (post-graduate) in one of the universities or university colleges listed below.
  • Students studying in one of the World's Top 100 universities, check the world university rankings here, are also qualified for the loan. NOTICE: As of late July 2013, the SPP1M loan is currently available at Maybank and priority is given to students in local universities.

participating universities SPP1M

For reference, kindly check this MQA site.

For students enrolled in Franchise Programmes (IPTA degrees offered by IPTS through twinning partnership)

  • Students enrolled in institutions of higher learning (but not in the SETARA list) but are taking up a franchise programme from a  Public University are eligible for the loan scheme.

Explanation: For example, a student of Allianze University of College of Medical Sciences (AUCMS), which is not in Tier 4 or 5 universities, is taking a franchise degree course in medicine from Universiti Kebangsaan Malaysia (theMD-UKM programme), which is Tier 5 in the list. This makes the student qualify for the loan.


Application process

  • Application must be done directly with Maybank
  • A maximum two personal guarantors may be required
  • Students taking up medical courses can borrow up to RM150,000 and RM100,000 for non-medical

How it works

  • The educational institution will monitor the student's academic record via the e-SPP1M system.
  • Once student's results are out, the university/university college will send the results to YPPB within 3 working days.
  • The bank will then disburse the loan amount to the educational institutions 30 days after YPPB received the results.
  • Student must keep their CGPA above 2.0 out of 4.0 or 3.0 out of 5.0
  • Failure to meet the requirements means the loan money will be put on hold until the student's grades reach acceptable level.


  • Students have to repay the loan should they not complete their studies
  • Repayment commences six months after the completion of studies regardless of whether the graduate has found a job by then
  • The maximum loan repayment tenure is 15 years
  • The interest rate of the loan is at a base lending rate (BLR) of -1% while studying. After completion of studies, a normal BLR will be applied.

For more information about SPP1M, click here

Read previous news on SPP1M here


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