Wrote a long post in the other forum, copy and paste it here:

Just my 2 cents from recent home loan hunt and research. Flexi loan = prepayment made offsets principal for interest calculation, prepayment made can be withdrawn.

And there are two types of flexi loan in the market now.

Type 1, Full-flexi:
- Higher interest rate than semi-flexi
- Allow you to make any amount of partial prepayment or even full payment anytime without notice.
- Keep the facility for the duration of lock-in period to avoid early settlement penalty if you are able to make full payment within lock-in period.
- ATM card and/or cheque book provided for the loan+current account to withdraw prepayment at any time without notice.
- Monthly maintenance fee of RM10 and a one time RM200 setup fee.

Type 2, Semi-flexi:
- Lower interest rate than full-flexi
- Allow you to make partial prepayment up to amount of total installment for the duration of lock-in period anytime without notice.
- Penalty imposed if loan is to be settled within lock-in period.
- Withdraw prepayment from branch office at a cost of RM10 or RM50 per withdrawal. Amount of withdrawal must be in multiple of RM1000 at a minimum of RM5000.
- No monthly maintenance fee and setup fee.

Some glossary that i am so confused with before all the research:
1. Installment - Minimum amount you need to pay every month.
2. Prepayment - Excess amount you pay apart from installment. Please take note most banks will consider your payment made 7 days before installment due date as prepayment.
3. Advance payment - Monthly installment you pay in advance so that it will be deducted automatically every month. This amount do not offsets principal for interest calculation. However, most banks do not practice this anymore. They will suggest you to use standing instructions.
4. Principal - Your total loan amount.

Note: Please check carefully for your needs. I have chosen semi-flexi because i hardly use the cheque book facility, hardly needed to withdraw money immediately, put extra cash into loan account, keeping only 6 months of expenses at saving account for easy cashflow, and i save more from semi-flexi. Must do a simulation of your loan amortization schedule!

Yes, i did calculate having all my money into the full flexi loan account. But due to the full flexi i applied requires MRTA, hence the loan amount is higher, translating into higher interest. Note that the semi flexi loan i have applied do not need MRTA. Anyway, from my rough calculation, i will be paying around RM15 extra interest per month if taking the full flexi. Probably it is not a lot for the convenience of ATM card and cheque book provided.