Jun 12 2010, 02:13 PM
QUOTE(b00n @ Jun 12 2010, 12:46 PM)
You check with HSBC.
As far as I know how it works is the interest gets reduced; but principal is the same. So total monthly installment is reduced because of the reduction in interest portion.
Btw, I don't recall seeing "interest" vs "principal" split in HSBC statement.
But from what the bank loan personnel told me, my understanding is the monthly installment is fixed, if the interest charge is reduced because of extra amount of cash in the current account, more portion of the monthly installment will be used to pay the principal, and therefore the loan period will reduced.As far as I know how it works is the interest gets reduced; but principal is the same. So total monthly installment is reduced because of the reduction in interest portion.
Btw, I don't recall seeing "interest" vs "principal" split in HSBC statement.
Anyone can clarify?
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