Skim Prihatin Pendidikan 1Malaysia (SPP1M) - What, How and How Much

Many students go on to finance their tertiary education typically with applying for a PTPTN loan, seperate government or private bursaries and scholarships. Many a time, especially with PTPTN only funding, funds can come out short. In an effort to help tertiary level students, the government has introduced the Skim Prihatin Pendidikan 1Malaysia. (SPP1M)

What is the SPP1M?

The SPP1M works as "top up" fund to students (local and overseas universities) existing fund or scholarship, complementing the existing PTPTN student loan scheme in Malaysia. The main difference (more comparisons below) between the SPP1M and the PTPTN scheme is that the SPP1M is underwritten (issued) by commercial banks in Malaysia rather than a seperate government department.

How is it different from PTPTN?

Loan given byGovernment-owned corporation Participating financial institutions
AmountIt all depends on your institute of education, education level and your courses. A maximum amount of RM150,000 for Post Graduate Degree in Medicine (Clinical, Aviation Medicine, Dentistry), Pharmacy and RM100,000 for Bachelor Degree in Business and Law (Finance, Banking, Insurance, Accounting and Taxation, Law and Syariah Law), Engineering, Architecture, Science and Computer Science.

Top up amount will only cover the tuition fees minus the PTPTN loan or other funding.
Type of Interest RateFlat/Fixed Rates (new PTPTN loan applicants) (either 1% p.a. flat or 3% fixed)Variable Rates (BLR - 0.75% to BLR - 1% during disbursement, BLR + 0% during repayment)
Interest Rate1% p.a. flat “Ujrah” (new PTPTN loan applicants)

3% p.a. fixed for existing loanholders
Interest is to be charged at BLR - 1% during study period and during 6 months of grace; and BLR + 0% during employment period
Age limit45It is up to the banks to determine the age limit.

Don't know the difference between flat, fixed or variable rates? Check out our Interest Rates 101 article.

Want more information about PTPTN? We have the information you need in our “PTPTN Education Loan – Guide to the Application, Disbursement and Repayment Process" article!

How does it work?

You walk into a participating bank, and the amount you can request as a 'top-up' depends mainly on the difference of your actual tuition fee and the amount of any existing loans or scholarships.

For example, the actual tuition fee is RM100,000 for three years and the your PTPTN loan amount is RM70,000. So, the maximum top up you can get is RM30,000 (RM100,000-RM70,000)

There is an overall cap on the amount available to be disbursed. A maximum amount of RM150,000 for Post Graduate Degree in Medicine (Clinical, Aviation Medicine, Dentistry), Pharmacy and RM100,000 for Bachelor Degree in Business and Law (Finance, Banking, Insurance, Accounting and Taxation, Law and Syariah Law), Engineering, Architecture, Science and Computer Science.

How do I apply?

Students shall apply directly to the participating Financial Institutions. Current participating Financial Institutions are RHB Bank and Maybank (UPDATED: click here for Maybank SPP1M application form).

* only one loan approval per student is allowed at any one time


a) Open to all Malaysians

b) Minimum SPM / STPM / Foundation / Matriculation / First Degree OR whichever is applicable .

c) Selected courses aligned with national demand

d) Secured placement in approved higher education institutions

(For local universities, borrowers would need to refer to SETARA 11 list under level 4 & 5 while for international universities, brorrowers would need to refer to QS top 100 ranking list)

SETARA 11 and QS top 100 ranking list

SETARA 11 list measures the quality of alumni, curriculum, teaching and satisfaction of alumni of local universities in Malaysia. SETARA 11 ranks the university with six levels, Level 1 to Level 6 (from weak to distinction).  Only students from the universities ranked level 4 and 5 (none in 6 at the moment!) are qualified to apply SPP1M. Here is an excerpt of the SETARA list:

Level 4 :

Level 5 :

The QS top 100 ranking list is the annual university rankings published by Quacqurelli Symonds. They compare global universities on several different criteria. Under the SPP1M scheme, only studends from the QS Top 100 list are eligible to apply for the loan. Here are some examples in the list:

Massachusetts Institute of Technology
University of Cambridge
Harvard University
University College London
University of Oxford
Imperial College London
Yale University
University of Chicago
......and many more.

For the full list of Universities and University Colleges that are covered under SPP1M:

Local - click here
Overseas - click here 

Application / Processing Fee:


Documents Required:

Application Form, which is available at all participating Financial Institutions.
- Academic results on SPM/STPM/Foundation/Matriculation/First Degree OR whichever is applicable (certified true copy)
- Unconditional Letter of Offer for Admission from Universitity/College
- PTPTN Loan Offer Letter (for PTPTN borrower)
- Other relevant documentation to confirm scholarships / grants / loans
- Proof of funding (for self finance portion)
- Other relevant documents, as required by Financial Institution

Click here for SPP1M required supporting documents checklist.


As specified by the Financial Institutions. This may include Insurance Premiums, Late Payment Charges, Correspondence Charges, Stamp Duty, etc.


A maximum of 2 personal guarantors(not necessarily family members).The Guarantor must be free from bankruptcy, criminal records and potentially other set criteria by the banks.

How long will the approval process take?

Applications from 18th March 2013 to 1st June 2013 will take approximately 2.5 months to be processed for outcome. Applications after June 2013 onwards will take approximately 1 month subject to the participating banks' terms and conditions.

Disbursement & Repayment

First Disbursement

Financial Institutions will disburse the loan directly to the Universities/University Colleges, and will notify the borrowers.

Subsequent Disbursement(s)

Loan disbursement will be withheld by FI if the borrower's CGPA is lower than 2.0/4.0 (or 3.0/5.0) for the semester. Disbursements will resume when the borrowers CGPA improves to more than 2.0/4.0 (3.0/5.0).


SPP1M requires you start paying the loan 6 months after the completion of studies. (even if the student is unemployed after 6 months)

If the student did not complete their studies, the student will have to repay the loan.

If the student change to a different programme or university after obtaining the loan, the student will have to settle the initial loan made first, and apply for another loan under the same scheme.

Loan tenure

Up to 20.5 years (inclusive of, up to 5 years study period, up to 6 months grace period and up to 15 years repayment period)

Interest rate

For Conventional Loan, interest is to be charged at BLR -1 during study period and during 6 months of grace; and BLR +0 during employment period. Interest amount will be capitalised during study period. For Islamic Loan to follow similar terms to BFR.

Commencement of the Scheme:

For studies at local higher education institutions : 18th March 2013

For Overseas higher education institution : June 2013

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