Jul 18 2016, 05:34 PM
QUOTE(BboyDora @ Jul 18 2016, 03:54 PM)
Hi all,
wanna ask about capital repayment vs advance payment (which one can reduce the interest rate)
Let say my house installment is Rm 1500. But every month I pay Rm 2000. (the extra RM 500 consider as advance payment, according to my bank officer)
Or I just pay RM 1500 every month, after 10 month I straight pay Rm 5000 as capital repayment ( RM 500 x 10
) since the additional RM 500 i keep every month until the 10th month.
Some ppl say no different. So kind of confuse now
. Hope you guys can enlightens me in this loan matter
by paying extra RM500 each month, you'll effectively reduce your loan principle by RM500 each money.wanna ask about capital repayment vs advance payment (which one can reduce the interest rate)
Let say my house installment is Rm 1500. But every month I pay Rm 2000. (the extra RM 500 consider as advance payment, according to my bank officer)
Or I just pay RM 1500 every month, after 10 month I straight pay Rm 5000 as capital repayment ( RM 500 x 10
) since the additional RM 500 i keep every month until the 10th month.
Some ppl say no different. So kind of confuse now
. Hope you guys can enlightens me in this loan matterIf you hold for 10 months and pay in 1 lump sum RM5000 also can.
You'll have to check whether your loan is a flexi loan or it's a non-flexi loan & whether the bank allow you to do any advance payment that will reduce on the principle
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