Semi-Flexi loans are a natural evolution from the basic term loan. Not too long ago, banks in Malaysia started lowering the barriers for borrowers to make additional payments to reduce the principal amount owed. There was no longer any need to write in explicitly to request for such an arrangement. Additional payments made did not go in as Pre-Payment, but went to work immediately, reducing the loan amount.

Additionally, banks also made it possible for customers to withdraw any additional money paid ahead of schedule to the loan. However, this would incur some processing time, as well as a processing fee usually in the range of RM50 to RM100 per withdrawal from the loan account.

While not entirely liquid (meaning you could withdraw money as you please), the money still remains accessible in case of an emergency. Different banks have different procedures for withdrawing this money. Some still require the customer to write in, while others have made it accessible via their Internet Banking portals.

Today, all property Term Loans offered by the major commercial banks are Semi-Flexi by default.
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