I am taking loan as RHB MY1 Full Flexi Home Loan, the amount is around 200k, at the start the monthly installment is around 1k.
Along this few years, I am working and saving very hard to pay the principal and make it out standing to 100k, then I got recalculate installment become RM500.
But recently, RHB bank want me pay back installment amount 1k. Anyone has this problem also?

Yes I received the same notice from them too. They sent it via SMS and letters. I went to the bank and asked the branch manager what is going on and the reply was it the HQ new policy. He said I am not the 1st customer making the complaint and apologized and said he cant do anything about it.

I think we all should complain to Bank Negara about this.

I thought the installment amount will remain the same throughout the loan period. However, the interest that you are paying will be much lesser as compared to before, hence more amounts will be offset against your principal (say interest 400, principal 600)?

https://forum.lowyat.net/topic/4763280/+140

The interest charge they said is based on the out standing principal, but inside the system they say I still need to pay that amount for 20+ years, so the total I will paying is 5000% of what I outstanding loan.

technically you should have follow the bank instruction's to make payment... anyway since you have made 'extra' payment it is also good to save interest charged on your loan (which is based on outstanding of the principle)... since you have keep track of your repayment why not pay until balance of 10k (or less or more, up to your comfortable level) and call the bank and ask for settlement and close the case??? which you will settle you loan with bank in less than 20 years (which is the original tenure)...

Hi TS, please continue your enquiry here https://forum.lowyat.net/topic/3437581