This is because their records have now been included in the Credit Central Reference Information System (CCRIS) database, as part of PTPTN’s efforts to recover approximately RM8.3 billion in unpaid loans.

CCRIS is a database containing credit information about borrowers from various financial institutions in the country.

PTPTN deputy chief executive officer (policy and operations) Mastura Mohd Khalid said the decision to include borrowers under CCRIS was to address the low loan repayment rate, The Sun reported today.

Mastura said as things stood, PTPTN has only succeeded in recovering RM7.5 billion out of RM15.8 billion loaned.

“We need RM5 billion every year to fund students for their higher education.”

Many local car dealers The Sun interviewed also reported a high volume of rejected loan applications due to the inconsistent servicing of PTPTN loans.

“Since this month, many new graduates have been unsuccessful in their loan applications. Details in their payslips may appear impressive but when bank officers view the CCRIS, they find that many had not paid their PTPTN loans for months, with some up to 37 months,” the daily quoted a Proton sales adviser based in Muar, as saying.

Meanwhile, Association of Banks Malaysia (ABM) said that records of poor loan repayment could reflect negatively on new loan applications.

“Banks evaluate an applicant’s overall financial circumstances on a case-by-case basis, taking into account information available from various sources including CCRIS,” ABM executive director Chuah Mei Lin was quoted as saying.

Chuah said that all loans and financial commitments that were obtained from either banks or non-banking institutions are taken into account when applying for loans.