Boss,

None of the banker ask me this Q before

pening kepala when come to these islamic loan thing as their terms and wording read liao also cannto understand

OCBC have many panel law firm, and they also allow non panel law firms.
That banker try to BS you to use his lawyer so he can get commission.

Hi,

Sorry, maybe i just tried to explain (too simplified), without considering readers may not have the basic understanding abt OCBC...

when i say daily rest, and no difference, i meant that the customer would put in RM10k into both OCBC home loan account vs Other Bank current account linked to home loan (comparing apple to apple). and if withdrawal is made the same day, it wouldn't make a difference at all..

because both OCBC home loan account and Other Bank current account's daily rest calculation is exactly the same. interest is calculated based on remaining outstanding home loan balance for both...

On another question relating to - "How much affect on monthly repayment", - No, it has no affect on monthly repayment, because monthly repayment is fixed and agreed upfront... it will only affect the final installment amount depending on the remaining interest (bank will advise final installment for settlement release letter.
Simple answer:
1. Yes, signing up for R&R, but finally, if you do not drawdown the R&R, it will lapse within 1 year after full disbursement. You will not be charged any interest, if you do not drawdown.

2. You can perform online transfer to pay your installment. What i'm talking about is specifically on the prepayment... for your prepayment, there are 2 types, capital repayment and advance installment. capital repayment enables you to make future withdrawal but u still need to pay your next installment. For advance installment, you do not need to pay your next installment, but u cannot withdraw.. so capital repayment, can only be done via 2 methods, ie pay over the counter, or cheque deposit machine. any other repayment mode, will automatically be treated as advance installment.

Hope the above helps..
Cheers!

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.