1. Education funding in the form of a loan that will include service charge. The applicable service charge is based on the following:

• Borrowers who have accepted the loan offer commencing 1 May 1997 to 31 December 2008 will be charged a service charge rate of 4% per annum on the total outstanding amount. However, from 1 January 2013, the rate has been re-revised to 2%; and

• Borrowers who have accepted the loan offer commencing 1 January 2009 onwards will be charged a service charge rate of 2% per annum on the total outstanding amount.

2. The loan has been insured, and the insurance costs has already been factored into the total amount.

3. For education benefits at diploma and degree level education, borrowers may apply to convert their loans into scholarships if the final academic results fulfill the conditions set by PERKESO.

Education benefit applications should be made online at the official PERKESO website and by submitting the following documents:

1. A copy of the latest passport sized picture of the applicant;
2. A certified original copy of the applicant’s birth certificate;
3. A certified original copy of the applicant’s identification card;
4. A certified original copy of the applicant’s academic result for PMR, SPM, STPM, Certificate, Foundation / A-Level / Matriculation / Diploma;
5. A certified original copy of the applicant’s high school testimony;
6. Original Letter of Offer for placement into an Institute of Higher Education;
7. Confirmation letter of registration from the Institute of Higher Education, registration fee receipt or a copy of the student identification card;
8. A letter from the Institute of Higher Education following the PERKESO format highlighting the cost and tuition fees for the latest semester.

• Loan allocation only covers the education cost which include fee for the first semester, education, examination and lab fee for each semester while other fees are not covered by PERKESO.

• No allocation of sustenance allowance for student is provided.

Applicants who have accepted the offer for the education benefit must secure guarantors and joint sign the education loan agreement documents.

Eligibility to be a guarantor :

1. Malaysian citizenship
2. Number of guarantor and minimum income level of each guarantor commensurate with the approved loan amount:
   1. Amount less than RM100,000.00
      • Two (2) guarantors;
      • Net monthly income (after deductions) of not less than RM1,500.00;
      • Minimum employment period with current employee: 2 years; and
      • Permanent employment;
   2. Amount exceeding RM100,000.00
      • Three (3) guarantors;
      • Net monthly income (after deductions) of not less than RM2,000.00;
      • Minimum employment period with current employee: 2 years; and
      • Permanent employment.

3. Minimum age to be a guarantor is subject to the loan amount as set out by the schedule below:

4. Each guarantor can only guarantee one (1) loan applicant at any one time;
5. Guarantor can be either parents, siblings, family members or close friends that have known the applicant for more than 5 years;
6. Any guarantors that are self-employed must furnish a copy of the latest 3 years Inland Revenue Board (LHDN) Form B submission that is certified by an officer from the Inland Revenue Board and earn more than RM30,000.00 per year;
7. Guarantors who have signed and agreed to be guarantors may not pull out, unless they are disqualified due to conditions set out within the Education Loan Agreement;
8. Applicant and guarantors must sign their documents, witnessed by any of the following:-
   1. Member of Parliament / Senator;
   2. Any officers that belong to Group A or B from the government or approved agencies or equivalent;
   3. Officers that belong to the judiciary or legal services such as magistrates, lawyers or oaths commission;
   4. Public school headmaster;
   5. Police officers who are ranked SI and above / Military officers ranked Captain and above (or its equivalent);
   6. PERKESO officers who are Grade 19 and above;
   7. Village head / Justice of Peace / Warden/ village elder / community leaders / Sidang(Councillors)/ county development officer / JKKK Chairman (Village Development and Security Committee);
   8. For Sabah and Sarawak – ethnic group leader / Native Chief / Captain / Pemanca Councillors / Sabah park officer; and
   9. Other officers approved by PERKESO from time to time.

• Education loan are disbursed by:
  
  1. For tuition fees: Cheques drawn for or credited directly into the institute of higher educations’s account;
  2. For sustenance allowance: credited directly into the student’s Maybank account; and
  3. Premium insurans akan dibayar terus kepada Syarikat Insurans.

• Disbursements will be made on a staggered basis for each semester. For the initial disbursement, completed documents must be furnished by the students to PERKESO. For subsequent disbursements, students must submit latest examination results for the semester.

• Disbursements are made on a staggered basis to ensure that the students continue to perform well academically. By submitting the examination results, PERKESO will be able to monitor the student performance.

• Should the student fail to achieve a minimum Cumulative Grade Point Average (CGPA) of 2.00, the education loan disbursement for the upcoming semester will be suspended temporarily until the student has attended a counselling session conducted by PERKESO counsellors.

• Loans must be paid inclusive of service charges by the borrower on instalment basis adhering to the loan tenure as determined by PERKESO commencing after the twelfth (12) month from the final month of which the borrower receives the final disbursement of the education benefit.

• Education loan payback period is based on the amount disbursed, based on the following schedule :

• First instalment shall be due on the first day of the twelfth month from the month of the final loan disbursement.