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 Loan: paying principal during progressive interest

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syzsiew5991
post Jun 5 2023, 11:57 AM

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during progressive any excess payment will not reduce principal, only goes into advance payment

but you can go to bank to submit lump sum to reduce principal
syzsiew5991
post Jun 24 2024, 09:09 AM

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QUOTE(Aldo-Kirosu @ Oct 10 2023, 01:12 PM)
Is it all bank is the same? because i ever hear some bank will classify the advance payment store at flexi loan account as a their *advance payment for next month payment, so its not ready reduct the principle. Is it this rumor right?
*
you should minimize monthly payment because monthly payment = principal + interest. with minimal monthly payment your interest also min to a certain extend.

meanwhile save a sum of money externally and pay lump sum to the bank to knock off the principal to reduce the interest.

raising your monthly payment = more principal + more interest is not wise


 

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