under capital repayment, is there an option to re-calculate the monthly instalment?

my sales guy said that capital repayment cannot be withdrawn; is that correct?

Correction for you, capital repayment will not shorten the loan tenure.

advanced installment, by the namesake, is advanced future repayments, you may use that to reduce outstanding balance, but to shorten loan tenure, you should be doing early settlements.

btw, afaik, by the book, advanced installments mean you need not to pay for a certain time frame as long as you have extra credits with the bank; on the other hand, after early settlement, you would need to serve your monthly installments as well

for interest calculation, yes you are correct! it will use outstanding balance minus whatever amount of capital repayment to calculate the interest.

Money parked under capital repayment is not directly used to reduce loan outstanding because there is an option to re-draw

just like any other banks, under flexi loans, say you have 100k outstanding and 50k deposit in current account. If you wish to refinance from this bank to OCBC, your redemption letter will state 100k instead of 50k.

I might sound a bit like a geek here, but if you play by the book, it is not directly settlement of loan outstanding, it is just a temporary direct reduction for interest calculation only.

Sorry if I'm mistake. For my understanding if for capital repayment, I can save more interest, and might shorten my loan repayment period. I can withdraw them anytime in future with RM10 processing fee, and get the money after 3 working days.

However, i don't understand what is the benefit if I make advance payment?