lets say i take a flexi loan, current interest rate around 6%
it would best for me to finish paying the loan faster in order to save on interest.
but im afraid that if i follow this attitude, i will use half my monthly salary to pay the loan,
and no spare cash to enjoy my life, or invest elsewhere.

how do you do it ?

does ur loan package allow u to do withdrawal? if so... and it's without charges.. then it shud be ok...

usually they have 2 acc

one loan acc and one current acc

the $$ u put in loan acc wont be able to withdraw... but those in current acc u will be able to.

so does the money in current account have any effect on my loan repayment / interest ?

There are loans from the Std Chartered , HSBC or Alliance Bank with the following advantages :-

Your loan comes with current account ( two in one ) meaning you can put in all your savings into this account, so to minimise the interest charge. You can withdraw the excess or extra payments by way of cheque if you need the money.

However, you cannot withdraw instalments due and paid. Let say, you have paid 12 instalments by now, this amount paid is not for withdrawal.

If you worry you may need some money later, it is also good to have a longer period to pay. let say 30 years. But you can pay more as if it is 20 years loan. Let say, you need to pay only RM 1000 a month, you can pay RM 1500 a month. As I say, you can withdraw the extra paid if needed.

This post has been edited by SKY 1809: Feb 16 2008, 12:10 PM

issit possible by put all savings in loan account will attract income tax ppl to check u? i heard they can't simply check our saving account but how about loan account?
i also plan to pay 99% loan in advance but scare of LDHN invite me to having teh tarik session...

Why are ppl afraid of income tax when one declares his due?

Anyway, usually upon purchase of a property LHDN would run a check on the person. So if they've decided that this guy can afford the property, why would LHDN check that loan account again?

Unless the bank reports you for suspicious activity; than that's a different story.

most of businessman afraid of income tax...
so.. advance payment not suspicious activity right
thanks.. will ask the banker for more detail.

This post has been edited by genkis3: Feb 21 2008, 03:20 PM