Someone posted a similar topic last year.

Loan interest is calculated on a daily basis. If the due date is end date of each month and one pay on the 1st day of the same month, there is oredi a 'savings' on interest calculation for the next month.

Similar to those guys selling gadgets to reduce electricity bill ... do you think it works ? .... otherwise all electrical appliances manufactures would have install one unit in Air Cond, Fridge, Heater, Oven etc.

The moment you pay the 3.6k, you oredi pay more interest !

And you have to pass the monthly instalment to them and they will pay on you behalf, RIGHT ?

All they're really doing is providing a course on how to pay early and how interest is calculated at RM3.6k cost of education, feeding you information that is usually already provided in the T&Cs of your loan agreement, just that they translate in layman's terms for you. Which is already explained in this PropertyGuru article, for free: https://www.propertyguru.com.my/property-gu...-malaysia-18659

In other words, they're selling you Tahi Lembu and taking RM3.6k commission per fool who happily eats their tahi without actually reading the fine print of how home loans work (as above mentioned, usually home loans calculate on daily rate). Their only credentials is awards from used to be part of banking industry and good sales. The "ERS" plan they develop is simply an education course of how to manage your loan wisely, not a true savings plan.

My advice? Read the above article, then read your loan offer for procedure on extra payment (if semi-flexi loan) and take that RM3.6k "one off payment" to pay into your housing loan, and continue to pay your instalment on time. If you're enjoying a flexi home loan, park your extra money in the attached current account.