Jan 28 2016, 05:53 PM
QUOTE(win44 @ Jan 28 2016, 05:56 PM)
Hey Sifus, Si-Jies,
I have an issue with Ambank Islamic term home loan.
I am buying a house, and i opted for islamic flexi loan.
However Ambank told me they no longer have a flexi loan, but their term loan is Semi-flexi.
Over the phone, the bank office has told me that if i make additional payments into the account, the interest will be reduced (calculated daily).
However all this is just verbal promise. All my reading and research online says that Term loan does not reduce interest if additional payments are made.
The officer said that if i wish to reduce the principal, i will need to write a letter, and deposit rm5000 at a time. This money cannot be withdraw. And it will be shown as reduction in principal on the statement.
However he also said that if i just bank in additional money every month, maybe few hundred each month, he says it will reduce the interest, the same as if i deposit a large amount. But will not show on the statement.
So when i asked him what is the difference he says "some people like to see the principal amount reduced in their statement."
I have signed a loan offer, but waiting on loan agreement documents.
Is it true that nowadays "term loan" from ambank is so called semi-flexi? Or are these guys just telling me what i want to hear.
Dear Win44,I have an issue with Ambank Islamic term home loan.
I am buying a house, and i opted for islamic flexi loan.
However Ambank told me they no longer have a flexi loan, but their term loan is Semi-flexi.
Over the phone, the bank office has told me that if i make additional payments into the account, the interest will be reduced (calculated daily).
However all this is just verbal promise. All my reading and research online says that Term loan does not reduce interest if additional payments are made.
The officer said that if i wish to reduce the principal, i will need to write a letter, and deposit rm5000 at a time. This money cannot be withdraw. And it will be shown as reduction in principal on the statement.
However he also said that if i just bank in additional money every month, maybe few hundred each month, he says it will reduce the interest, the same as if i deposit a large amount. But will not show on the statement.
So when i asked him what is the difference he says "some people like to see the principal amount reduced in their statement."
I have signed a loan offer, but waiting on loan agreement documents.
Is it true that nowadays "term loan" from ambank is so called semi-flexi? Or are these guys just telling me what i want to hear.
1. For Ambank, islamic loan will be semi flexi. Term loan and semi flexi is different, don't mix it up.
Semi flexi is semi flexi
term loan is term loan
However, what you haev definitely is ambank islamic loan semi flexi, meaning to say, you can reduce your capital by cashing in extra cash into your capital account, you need to give notification in advance for withdrawal or crediting of cash from the capital account. It is daily rest
Advance notification is needed in order to credit the cash into capital account, else the cash will be credited into advanced account, whereby the cash can't be withdraw and act as advance installment payment in the future.
2. For installment part, if you pay extra installment, your mortgage loan tenure will be reduced as you are paying more towards capital.
example
Rm300k loan
4.5%
35 years
Installment monthly = RM1419.77
First month interest payment will be RM1125
Hence, paying towards capital will be RM294.77 (1419.77-1125)
If you pay extra RM200 + RM1419.77 = RM 1619.77
You will be paying more towards capital Rm294.77+rm200= rm494.77-----> capital
Hence, your loan tenure will be reduce ( given the interest base rate remains)
However, extra installment cash paid can't be withdraw, do take note.
3. I can't recall ambank withdrawal multiple, usually in the multiple of RM1000 RM2000 RM5000. Do call ambank customer call centre for verification on this
Quote
0.0579sec
0.25
6 queries
GZIP Disabled