1. First of all you would have to consider the outstanding balance of your loan vs the RM200k certificate value. I do not know what was the ARTA (ASB-reducing-term-assurance) premium/contribution that was financed into the loan, but it should not be too significant. There should be capital returned to you once you close the account

2. Next, in general a financing of the full 200k is always better than 100k. You can either maintain the status quo (no refinance, just stay with Sotong) or you can refinance to a different bank, of which you need to consider:

a. tenure (max tenure is 35 years for you now at your age)
b. rate, best rate for new customers is around 4.75% p.a.
c. installment - it should be lower than what you are paying now, at this rate, RM200k financing = RM980/m for 35 years

3. Following point (2), the reason you may want to keep the 200k financing is to accelerate the growth of the softcap. You can do so by adopting a hybrid technique of monthly payment of RM500, and using part of the distribution to pay the remaining balance, which is RM480 a month. In this case, you would only need to take only RM480 x 12 = RM5,760 from the yearly distributions to supplement your instalments.