Just drank half a bottle of cough syrup. Am on a bus to KL.
So naturally, my brain starts calculating.
I suspect that PTPTN's strong arm tactics is designed to force loan defaulters to settle everything off quickly.
Wanting to avoid the Ah-Longish 12% interest, many would cave in and pay the full amount. Myself included.
Maybe it's the KPI of some people in PTPTN - get a percentage of the money back at all costs.
Can't blame them. In fact, let's help them!
Let's look at the facts:
1. Bankruptcy threshold is 30K.
As long as your loan is below 30K, they cannot proceed with bankrupting you.
So always, always keep your loan below 30K.
2. 12% a year is manageable.
Let's look at a typical PTPTN loan.
Say, you borrowed 25K.
Now, 12% a year is 3000. Per year.
Now, that's 250 per month.
Which means that in theory, you can just pay RM250 a month, in perpetuity, and avoid any legal conflicts. And PTPTN still won't get a bulk of their money back.
And people will fail their KPIs.
Which is bad. We don't want that.
So say you want to chip away at the principal loan.
Say you want to pay 20% a year, meaning 12% interest + 8% of the loan.
Meaning in 12 years, you can settle 96% of the loan, plus interests, which amounts to 144% of the loan.
From 25K, this translates to 5000 a year which is around 416.67 a month.
Hmmm. Not many would be able to afford this.
So let's try 15% a year. 12% interest and 3% at the principal.
Means in 30 years plus a handful of months, everything is paid. That and 360% in interests payments alone.
Back to the 25K example, that's 3750 per year, at 312.50 per month.
Or, just do what the PR people do. Don't pay, and wait for a double miracle.
Which might never happen.
Or do it like RPK. Run away as fast as you can.
Or, if you're rich, simply pay the loan.
If you're not rich, be a snatch thief. When they catch you, just say you are doing it to pay PTPTN loans. I'm sure the police would understand.