Just compare interest to interest.
FD interest lower than Loan interest, so put in Loan.
If balance in flexi loan already 500K and zero interest, then put in FD.

I think compounding interest also works for Loan but have to start at say 400K so that you actually do incur interest

I think banks can lend you up to installment equals to 1/3 of your salary.
Maybe like share investment they lend you (not others) 3x your balance but by 3 days,
you have to pay or force sell.

Don't think they can lend someone money they don't have ... by create money from thin air.
Maybe they can borrow money from Japan with lower interest and lend to Malaysians but I think BNM will limit them.
If they can create money, don't need customers' savings at all right???

This post has been edited by getsmart: Feb 21 2009, 06:35 PM