If lets say I have a 500k loan, and I directly transfer 500k cash to the loan but I didn't go to the bank to settle the loan, what will happen next month? Do I still get charge for interest ? reason for asking this is because I would like to avoid interest from the loan as much as I can, and indirectly I still have some cash ready in the loan for withdrawal incase of any emergency.

this seems like a good idea, anyone know how much is the minimum principal amount I need to keep in the loan? for example if I left the balance as Rm100 would the bank come force me to settle the loan?