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 progressive interest vs principal

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claudetan
post Aug 5 2020, 04:38 PM

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QUOTE(kyle9988 @ Aug 3 2020, 09:32 PM)
New buyer here.

As i know, progressive interest that need to pay during construction time doesn't deduct the loan amount that we borrow from the bank.

Therefore can we straight away request bank to charge by full amount as principal+interest?
Spoken with banker, she said cannot so just want to double confirm if any other banks got such offer.

Any Sifu can advise/ share?
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no need to request bank charge full amount, you just need to pay the amount you want, let said your monthly install as per loan agreement is 5k, now before VP, you pay 2k interest every month, instead of paying 2k, you can pay 5k which the remaining 3k will go to principle.
claudetan
post Aug 6 2020, 01:02 PM

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QUOTE(mini orchard @ Aug 5 2020, 05:17 PM)
Sure ok ?
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been doing this all the while ....
claudetan
post Aug 6 2020, 01:06 PM

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QUOTE(kyle9988 @ Aug 5 2020, 05:44 PM)
well banker said if pay more example - 3k will only park there and reduce the principal interest rate not offset the principal for semi flexi loan. if want to fully deduct as per full installment, need to sign another doc.
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what the different between park there and reduce the principle interest rate and offset the principle?

as long as you pay more on the principle, you pay less interest and you serve the loan faster.

furthermore the extra money you park there you can withdraw anytime, better than put FD now.

Unless there extra benefit with the "fully offset installment", if not i dont see the different there.

 

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