will Mach be extending the 1 year 4% FD placement? saw the promo still on their website

No take loan is better.

Yes, your banker is correct.
Settle earlier won't result in saving interest, as term loan interest is calculated straight line one.

Term loan works like this.
You take 50k at 3%, means your total pay back is 51.5K for 12 months.

Then 51.5K / 12 = your month repayment = 4291

It works out you are paying 125 interest per month.

For the first month, Rm125 is 3% of your 50k
For the second month, you still paying Rm125 interest, but you only owe them 45709. = 3.28% pa.
For the third month, you still paying Rm125, but with 41418 balance = 3.62%