You're given an account with the loan amount, together with a cheque book to issue payments and atm card to withdraw money.

The loan amount reduces every month, based on your tenure (e.g. 20 years, 30 years, etc) and repayment.

It works like an overdraft, where you're charged interest (daily rest) only for the money that you use - otherwise it's just RM10/mth admin fee.

You can pay any amount at any time - even in full, without prior notification. Of course, if you close the account within the lock-in period there'll be a penalty (1~2% of the loan amount) or you can just leave the money there as emergency cash.

I think the loan is most beneficial for businessmen because of their non-fixed monthly income.

It's also fantastic to avoid scrutiny from LHDN because you can almost buy a house with cash, e.g. take a 90% loan this month and then pay in full the next month. It'll still show that you have a 30-year loan but you're paying 0% interest.

It's even more interesting when you think how those making illegal money (e.g. loan sharks and illegal betting) can "clean" their money this way too.