Hi all, need info on making one lump sum repayment of housing loan principal amount using cheque.

I was informed that i need to go to physical bank branch to do this.

Anyone has more info or complete steps on this? Can i just write a cheque and deposit at the cheque machine?

TQ

Firstly, you need to know the exact sum to write the cheque ... each day is a different amount because the interest charge is on a daily basis.

For 'closing' of HL or HP account in PBB, transaction have to be done over the counter as the system requires proper authorisation of senior officer.

I don't think TS wants to pay off the loan, but to make a one time overpayment.

This post has been edited by poweredbydiscuz: Dec 8 2021, 08:17 AM

Even if is one time overpayment, bank counter must put in the correct code for payment received, otherwise it treated as advance instalment payment.

Not sure about Public Bank. For UOB, a simple remark on the back of the cheque will do the job. No need to go counter or meet officer.

That is why when borrowers apply loan, many go for the lowest interest rate only. They forgot that borrowing is about 'total package'.

This post has been edited by mini orchard: Dec 8 2021, 08:46 AM

To settle the loan you need to contact the bank to get the final amount. Going by the payment schedule is not accurate as there may be penalty charges for settling early.

You should contact bank for better answer
https://www.pbebank.com/Contact/Call-Us.aspx


But I believe you can, by using the loan account number + the note number.
I did it by bank transfer though, not via cheque...


You may also check the T&Cs in your agreement...

This is one sample...


This post has been edited by shadow_fax: Dec 8 2021, 09:08 AM

Simple answers is No

You are having a public bank so called semi flexible loan whereby any principal repayment must be made over the counter and you must inform the clerk that you are making principal repayment.

Else it's just credited as advanced payment and sits there and does not reduce the the interest amount

After making the payment check your slip to make sure its stated as principal repayment

Ex public bank customer

this. I'm also a public bank semi flexi loanee.
its quite troublesome until we don't bother overpay.
but then again, we have other loan that is fully flexi, so we dump more into this.

This post has been edited by cempedaklife: Dec 8 2021, 05:31 PM

Hi all, thanks for the reply..

An update on this, i went to Public bank and settled this:

1. bring cheque book to Sunway branch, inform receptionist that i want to make repayment on housing loan principal amount

2. receptionist told me to go first floor (i supposed is loan department). I go up, told them the same intention. The officer gave me a form to fill up my loan account number and amount to be paid.

3. The officer took the form to check and then sign on it. Pls take note the officer indicated "for repayment of loan principal" on the form.

4. On the cheque, Payee just need to write the loan account owner's name. Indicate loan account number behind the cheque.

5. with the signed form and cheque, go back to branch counter and wait for ur number to be called up. Pass the form and cheque and they will provide a receipt for it.

Hope this explains to all existing and future public bank loan customers. XD

A bit different with my previous loan with ocbc that i can just deposit the cheque at the machine or even make advance payment online.

Hi

1. Did you manage to get a lower interest immediately in the following month?

2. I took my loan from Branch A. Can I make the payment at Branch B?

I got public bank loan account as well. Online transfer will do just fine, just that if via this way then will be better to continue pay on monthly basis just to avoid any late fee incurred to ur account.

The interest is calculated base on total balance owing, so every month when it generate interest it will top up into your balance owing, then subsequent interest billing will based on the total owing from principle + interest. Bank generate interest on interest as well, no matter how u will being charge with same amount of interest.

Unless u need extra service such like auto repay into future repayment without incur late payment penalty or recalculate the future repayment amount then you probably require to walk in to the counter.

This post has been edited by kradun: Jul 7 2022, 10:47 PM

Yes u are correct. Done it several times, albeit with cash payments

Has your loan been fully disbursed?

The house I bought is still under construction and the loan is only partially disbursed so the bank told me that I can't pay the principal amount. Have to wait until the OP is issued, who knows how long it will take.

Riding on this topic for public bank semi flexi loan, what about the additional payment for every month?

Take an example of rm1800 monthly installment but I pay 2000 a month, does the 200 goes into reducing principal amount or advanced payment? I have been paying extra this way for a year+.

If advanced payment, can I ask the bank to move the money to reduce principal? Or does the extra payment will reduce my interest charged every month directly?

I have also transferred like 30-40k in lump sum previously, and the outstanding balance in my pbb app did minus out the 30-40k from the higher amount, but I’m not sure if it reduced the monthly installment charges.

This post has been edited by LovelyPotato: Jul 8 2022, 02:58 PM

So if every month paying extra few hundred and the money goes into pre-payment, does the interest calculated based on the net principal owed or total balance owed?

Seems like there’s no consensus here.

Sorry for the spam. I called my PBB branch credit dept to check. The person says that any extra payment have 3 place to go in loan account.

One will go into redraw amount will reduce interest, one will go into prepayment, and one will go into actual loan payment.

Any lump sum will go into redraw amount (you can check on PBB website), which will reduce your interest.

Monthly interest is charged based on the outstanding balances you see on your app, which is your (total outstanding principal minus redraw amount) * interest rate /365 * number of days of the month.

Prepayment amount will make your next payment date move further. As long as your next payment date is not too far and the amount in available redraw amount is adding up then you should be fine.

Additional info: transaction type code 614 is to pay your installment, 668 is redraw amount, 999 is interest, unfortunately I don’t have any sample for prepayment code.

Edit: I checked my hire-purchase account, every month I am paying a couple ringgit extra and it all goes into 614. So the prepayment don't have a separate code, it just shares with the instalment account and calculate the next payment date from the balance from 614.

This post has been edited by LovelyPotato: Jul 8 2022, 09:13 PM

Mine is subsales don't have such restriction, just with lock in 3 years can't fully settle, which I also not able to do so hence also not bother much.

Well done lovely potato.

Yeah just for the sake of reduce interest won't need to susah go counter just transfer into the loan account will do.

For online payment u won't be able to choose code, that likely to perform at counter?