bro, me thinks 4%pa (i'm assuming yar) monthly rest = the calculation done monthly lar
eg. (4%/12months *Owed end of month) + Owed end of month = Now owed begining of new month
VS
4%pa (i'm assuming yar) daily rest = the calculation done daily
eg. (4%/364.25days *Owed end of yesterday) + Owed Yesterday = Now owed beginning of new day

Pls correct if i'm mistaken yar - focus is 4%pa MONTHLY REST, not 4% montly interest 

4% interest monthly?!? Yearly ma become 48% annually?? This looks like A-Long Sdn Bhd.

Since you know only need to pay RM14K, why not loan RM15K?
Haha.. unless company need it to be even numbers =P

And you plan to finish pay all for how long? 3 ? 5 years?

dude - simple talk/view:
1. 4%pa (dont care what rest) VS PTPTN x%pa?
If less cost %, then worthwhile to take the 4%pa
ELSE
If more cost %, not logical to take right... unless somehow U need the cash to settle (ie. U owed PTPTN since... and now owe lump sum... and can't clear...)

2. U owe PTPTN $14K but the new loan $20K. U have the discipline to handle the extra cash for making more than 4%pa?
Forced to ask this Q coz some people (my previous self included ) when have $ lying around, backside itchy, suddenly got urge or "emergency", like "emergency need new gadget/changgih mobile phone".
If disciplined enough, no probs.
If not, it's like playing with a loaded gun.

Just cow sense above, no right/wrong yar 

Additional thoughts:
4%pa is low leh, even lower than most housing loans which the banks hold collateral.
Thus, IF U are an investor AND U have things which can, on average make U >=6%pa, U may want to tap this 4%pa loan. IF lar

Err sorry sifu! 

PL interest rate is different from most mortgage reducing rate, so the effective interest rate p.a. is much higher than stated.

Effective interest rate for PL @ 4% is about ~7.4% p.a.  (our in-house accountant pinky can help us count )

PL @4%, 20K loan 3 years = 622.22 per month x 36 month = 22,399.92, total interest paid = 2,399.92

PTPN 20% rebate = 14K x0.2  = RM 2,800

You only save like RM 400 for 3 years.

ah.. then the magic Q our buddy shd be asking is:
what is the effective rate of interest pa?
hehhe - then easily comparable to even FD & stuff.

Best if U know what is the repayment schedule
eg. every month, how much must U pay back per month for 3 years?
with that, i can ascertain your effective interest rate pa.
coz your "constant rate" is not too comparable with FD rate nor any other compounded pa rate.

hm.. that's approximately 4.17%pa. Good deal if i can get at it (with no collateral summore)
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er.. checkout the screenshot - the formula in Excel is there (see the formula bar). I used XIRR() function

hi avatar123,

I did my own calculation but not using XIRR and came to a figure out about 4.06% effective interest per year. In my opinion, this is very good and low cost of loan, even lower than housing loan which I think is lowest at this time (4.4%?)

I think this is your company benefit, something like a financial assistance plan - I know because one of my previous companies also offered same benefit 

While it's a good deal, you need to find out these:

1. What happens if you leave the company BEFORE 3 years is up? (or if company let you go, hopefully NOT!) Repay balance one lump sum? What if you do not have that amount to repay at that time?
2. Is this benefit taxable? i.e. reported in EA form? If yes, then you need to factor in that 'cost' too.

and like others have said, you need to make sure you have the discipline to handle the extra cash. Don't spend it, but instead invest it, even in something low risk like bond so that you can hopefully get better than 4.06% returns pa until the end of the 3 years.

P/s : I'm new in this section of the forum, but have been reading/learning a lot about personal finance. Even remember reading an article in personal money by one of the forummers here