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What is convertible loan..... can u help me?? or just help me with these sentences :D




well my friend asked me about that…. she got a scholarship to study abroad but the money is in the form of convertible loan…she just asked me in brief so i don't know the real thing happened to her bwahahahah but i felt so guilty if i don't help her…as well as i can learn new thing in here…

so i want to gather up all the businessman in this world to help me to understand about this term :D

uff yup i do need help from native speakers (or those who can help) to explain about these sentences :

 "A convertible loan is first and foremost a loan—plain and simple. It involves borrowed money that has to be paid back with interest. Typically, the conversion feature gives the lender an option to convert all or a portion of the outstanding principal of the loan into some form of an equity position in the borrower's company. In its most basic form, the lender has reserved the right to exchange his or her creditor position with the company to become an owner in the company. The borrower is willing to provide the lender that option in exchange for securing more favorable terms on the loan. For example, the borrower could ask for any combination of concessions, such as: no closing costs on the deal, no prepayment penalties, a lower interest rate and/or "payment vacations" within the term of the loan. (These are often requested for strategic times when the company anticipates significant fluctuations in cash flow.)"


and also this :

 "convertible loan

Loan that entitles the lender (or the holder of loan debenture) to convert the loan to common or preferred stock (ordinary or preference shares) at a specified conversion rate and within a specified time frame."


 i found these from online business dictionary :D but i don't understand a thing 

 (ok…...maybe some of them :p) 



really3 need help….. thanx


12:38 PM May 18 2008 |

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the sponsor will lend her money for her to be able to study, but she will have to repay that loan with interest by either:


a. paying the amount after her studies if she applies for a job in some other company (not the sponsor),

b. working for the sponsor company for an agreed period of time (so then her sponsorship is turned into almost like a full scholarship), or 

c. doing whatever is specified in the contract/agreement


that's how, at least, sponsorship from Petronas works.

12:07 AM May 19 2008 |





i think it just same as petronas scholar

because in my offer letter

offer letter from utp

they give 4 books of akujanji form

also we have to fill it with penjamin(dunno in eng) mhahahaha

and also petronas give the pointer to score

that mean if i dont score the good grade i must pay to them

and also petronas warn after finish the degree

we must (lapor diri)registered with them(petronas)

that mean we must work with them otherwise

we pay all the scholar

tell me if i'm wrong


06:02 AM May 19 2008 |




Are you sure the terms, scholarship and convertible loan, are correct?

yup (i think).... she told me so :p

What country is she going to?

Egypt (OMG those egyptian man will be looking for her!!!! bwhahahahah)

well she got the offer to study medical in middle east country….so she needs to study in local university for 3months starting from this june :D

i also got the offer (both of us got sponsored from MARA) but i need to study in local university for 2 years :p because i study A level  (medical) and will be sent to another country :p 

Who issued the scholarship/loan?

the government :p

we have 2 branch of sponsors from the government : JPA and MARA

from what i know, the scholarship from JPA is for all races in malaysia (malays, chinese, n indians)...n they don't need to pay back all the money… but they need to work for the government for 10 years after they had graduated :D

while the MARA scholarship needs to be paid back :D maybe 30 % from the original value…but if they can score 4.0 in exams, they don't need to pay anything :D n MARA is just for Malays :p





07:56 AM May 19 2008 |




thanx a lot peanut

yup… if someone got sponsored from petronas, he/she must work in their company…


so… that means she need to repay the scholarship when she graduated…but in some conditions the scholarship will be fully hers :D

but…she needs to repay the loan with interest


zheng,(or my classmate actually bwahhaahahah) 

take this  http://www.kamus.com/   

i often use this website as my online dictionary (the languages r Chinese, Dutch, English, French, German, Greek, Indonesian, Italian, Japan, Korean, Latin, Malay, Norwegian, Polish, Portuguese, Russian, Serbian, Spanish, Swahili, Swedish) 

ufff zheng…petronas had warn u? bwahhahah no wonder u don't take that offer n choose JPA :D 

yup that's true… petronas just want to help people to work for their company :D but i think it's worth it…. because we'll get that job for sure :p  n their salary is quite high too hehheheh 

08:23 AM May 19 2008 |






with the 4 books

also if i cannot achieve the good result during foundation i cannot

do the degree here(utp)

but if i want to continue the study in utp i must pay by myself lorr

bcoz in utp we also must do foundation for one year

and then doing degree for 4 years 


09:39 AM May 19 2008 |




UTP (university by petronas) is for engineering courses…

i didn't apply for that because i just want to study medical :D


10:16 AM May 19 2008 |





cannot blame on me bcoz i pply for all the course

bcoz after get the result spm

i just blur

and i read the website jpa

jpa said dont give all the hope to this scholar coz it very competitive

so i just apply for all




02:09 PM May 19 2008 |




LOL about my first post, that interest is supposed to be under the "a" option (if she ever needs to repay the sponsor in monetary form). right, i don't think interests should apply to working for the sponsor company. Undecided

02:30 AM May 20 2008 |




ok :)

things getting clearer now bwhahahahah
ooohhh NU, u r such a diligent man Laughing  thanx a lot for that infos…. my friends n i are under excellent student scheme…so that means we can convert the loan into  scholarship based on our results …  n that  might be the answer for convertible loan :D heheeheh


Do you still want to discuss the "business meaning" of convertible loans?

YUP – if u don't mind :p 


peanut , ok  it becomes scholarship if we work in their company right?? 

zheng, after the exam results i play games a lot bwhahahaah  



06:11 AM May 20 2008 |




yes, indeed, casiol. :)


by the way, those (monkey?) emoticons are sooo adorable! 

06:59 AM May 20 2008 |