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?

Yeah you won't be able to choose the code. But you can verify where the money goes into. If it's not the right code then you will have to check with your mortgage branch.

my loan is term loan (fixed loan).
already passed 3 years lock in period

what I did was sent a letter via registered post to PBB, telling them I would like to pay lumpsum for principal
They then call me back, ask me to put the lumpsum in my saving account and email them to authorise them to debit the lumpsum from my savings account


below is the screenshot of the payment code.. not sure if it is the correct code or not.


Attached thumbnail(s)

semi Flexi account can make online.

code 668 is principal payment

660 is over counter.

Hi, I made payment over the counter to reduce principal. The code is 660 with description Special Payment.

This is considered as principal payment too, right?

This post has been edited by Human Nature: Aug 25 2023, 12:07 PM

you are right

- special principal payment -

print at the center of the yellow slip

This post has been edited by Angry Clerk: Aug 25 2023, 01:35 PM

Riding on this post to ask all sifu here as my banker cannot really pakai after few rounds with her

i recent gotten my pb house loan somewhere around june and started paying july this year

1. my instalment amt is still as per the contract, but the recent opr has reflected, and my ijarah rate (interest rate) also adjusted. Not sure why my monthly amount still hasn’t adjusted. did a sense check at loan calculator should have been more.

2. as to paying extra to reduce interest , i read everyone post it seems it can be done online or counter. for online how to assure is directly into 668/660 as i don’t see it in the mobile version nor app when i wanna remit extra. i saw post at xhs it seems online payment sort their payment type by instalment -> prepayment -> then only principal, which may meant only if you remit the third one within the same month you get the principal reduction

thanks in advance

This post has been edited by jayxunned: Sep 21 2023, 10:56 PM

It may due the amount changes is not much (<rm50) so the bank didn't adjust the monthly repayment amount immediately.

So after the payment is done , you ll see the latest outstanding principal amount still owed to bank ??

Anyone know how is the procedure with Alliance Bank? I'm new to this bank, and bank just made first loan disbursement

of course... both amount repaid and also latest balance

how to do it online?

i dont see the option to choose code?

U can't choose one , for example Ur monthly 2,000

You just pay 10,000

8,000 auto goes into principal

but it should be treated as advanced payment by default right

By default one month payment as advance (loan >100K) with redraw feature

If loan less than 100K, no redraw feature, all payments considered as advance

so i tried to pay extra (eg. 2.8k loan paid 3k)
2.8k payment code is 614 and extra 200 is 668 which mean it went into reducing principal rather than advance payment?

Correct you are right

Hey guys tumpang this thread to ask about my PBB Islamic semi flexi housing loan. I've been pumping lots of lump sum over the past few months, they've all gone into 668 and reduced my principal by a lot. I've noticed my monthly interest incurred is getting very small, so I must be doing this right.

However, if I have even more cash to pump in the future and I want to reduce the balance to close to 0 so I don't need to pay monthly anymore, is this possible? Meaning I want to use my semi flexi loan account as an OD facility where in case of emergency I can use the "redraw amount".

My experience,
Today i make "special payment principal" over the counter. Straight forward reflected immediately, principal reduced .

Only if you have passbook and it is gone missing must cancel passbook first at customer service.


Earlier email customer service requesting statement all that is taking ages.

just newbie question lets say currently i serving progressive interest and month end 30th auto debit installment from my savings account. But found out my total loan amount keep incurring fews hundrad bucks evry week questions is this consider interest charge from bank?

If U want answers, attached the bank statement. No forumers can read beyond the few lines 🫣

Anyone knows how to pay principle using app/online? now my loan is auto deduct from saving account. I want to pay extra into my pricinple.

My loan is semi flexi.

This post has been edited by kelvinfixx: Nov 28 2025, 12:34 PM

If i am not mistaken, have to make payment over the counter. Give 1 month notice.

i pay using app. just hit pay loan installment and enter the amount i want to pay.

First time paying 25k into my principle for my home loan and first time also issuing a cheque. Thanks to this sub

your loan is semi flexi right? Does it pay and reduce the principle?

This post has been edited by kelvinfixx: Nov 28 2025, 05:23 PM

yes.

Does it reduce the principle, or it just accumulate in the monthly payment?

read 2nd page. i haven't see the impact yet looking at my loan balance

What is the transaction code? I buta2 follow my agent said need to give 1 month advance notice and go counter

This post has been edited by Human Nature: Nov 28 2025, 06:51 PM

668 for principal

Nice

Hi, is your monthly installment auto deduct from saving account? If yes, when you make this manual payment, does it still deduct from the savings?

After make extra payment, my next schedule payment will be the next month

hello

tumpang thread ya



anyone know what this means?

as i understand, it means if i want to make payment towards the principal, i can only pay at least 3 times my monthly payment (means RM3K, if my monthly is RM1K)

is that correct?
is this standard practice by banks?

This post has been edited by Reeson: Nov 29 2025, 08:44 PM