Apr 14 2025, 05:04 PM
QUOTE(lioncarlsberg @ Apr 13 2025, 10:11 AM)
This statement does not seem correct. If you correctly perform a payment for principal reduction, then your remaining outstanding loan should reduce and therefore the portion of your instalment charged for the interest should reduce .
The monthly payment (or instalment) should remain the same. You are still obligated to pay your instalments on time.
Free time, I kepoh a bitThe monthly payment (or instalment) should remain the same. You are still obligated to pay your instalments on time.
This is correct.
The incurred interest is reduced, monthly installment amount remains the same.
Meaning a bigger portion of that month installment amount goes to principal reduction (after interest).
Objective.
1. Reduce total incurred interest which is your finance cost
2. A reduced repayment tenure and a principal reduction are the 2 underlying factors to your total interest incurred.
This post has been edited by jojolicia: Apr 14 2025, 05:18 PM
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