1. Based on loan calculation, the bank already given you a rebate of RM 45,842
2. The calculated actual amount for settlement is RM 77,382


PL does not usually give you much savings when you settle earlier. The calculation is based on standard loan settlement calculation. You would not have much luck to nego for better settlement and all these is already written in you PL agreement when you sign up. You can choose to settle or continue to pay the PL.

That is why Rule no 1 : Never take PL (especially long term ones) unless you have no other choice at all.

This post has been edited by gark: Oct 5 2012, 01:36 PM

You are not being cheated, the bank is merely following the settlement procedures stated in the loan documents which you have signed. PL is always the poorest form loan to consider as the customer will have high interest rate and 'locked' in interest payment, hence even if you do early settlement, the interest is still being counted for the loan tenure. The bank have to make a lot of money for PL because PL do not need collateral, hence the risk is high for PL and also PL have high default (run away! ) rate.

PL loan settlement is also calculated similar to car loan settlement, so it not a new model. That is why no one take 15 years car loan.

I do not think complaining to BNM will help as the bank is following the rules. You can try to appeal (ask nicely, )to the bank for higher discount, but most likely the bank will not entertain you unless you have good relationship with the bank.

If you want to clarify, you can ask the bank to do calculation for you.

This post has been edited by gark: Oct 5 2012, 04:09 PM