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Banks to cut loan repayments

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nwb,

Just maintain the original installment if you afford to do so. In fact I would suggest you pay more if can as it will further reduce your principal much fast in view of the low BLR.

aunties111,

Go ahead to cc BNM. Frankly speaking, you are the only one that I ever know that your existing bank wanna charge you such a high fee for reducing the interest rate. There are more than 10 persons that I know (friends/colleagues) requested for lower interest rate and all of them got it with just paying less than RM100 processing fee.

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nwb,

Just maintain the original installment if you afford to do so. In fact I would suggest you pay more if can as it will further reduce your principal much fast in view of the low BLR.

aunties111,

Go ahead to cc BNM. Frankly speaking, you are the only one that I ever know that your existing bank wanna charge you such a high fee for reducing the interest rate. There are more than 10 persons that I know (friends/colleagues) requested for lower interest rate and all of them got it with just paying less than RM100 processing fee.

bunnyNwife,

Yeah, tot so too....

aunties111,

Well, not sure why u need to refinance to get the new rates? UNLESS urs currently a fixed rate package? if yes, then u've got no choice... but the lock-in penalty usually can nego wan.... maybe ur bank doesn't....no idea... sorry

Else like mine, the variable rates package, all i need to do to reduce my installment according to the new interest rate is just RM 10 to reassign my Standing Instruction for payment every month from my Savings to Loan acc.

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What to do... Banks are licensed blood sucker (all sort of fees or penalty clause) and loan shark (look at the credit card and personal loan interest rate - 15%-18%p.a.)...

ya... but recently i got notice from my PBB credit card statement shown there is reduction in credit card interest from 18% to 17.5%

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sorry to sidetrack a bit...

i received a letter from the bank that i can now choose reduce my monthly installments since the BLR has been reduced...or I can retain my existing figure of installments (which i think is good as well, as it'll probably reduce my overall tenure in the long run)...

any opinions on this?

I also received letter from PBB said my installment prepayment drop by abt RM100 but I had decided to continue the same prepayment since I had used to the amount paid (scare later reduce the payment donno where the extra $$ spend :tongue: ) & additional can reduce the principal faster & can save on interest...

But u got to bear in mind some bank do not ask u agreement on the reduction & they will auto debit the new prepayment amount automatially... coz this bank tactic to earn more interest.

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sorry to sidetrack a bit...

i received a letter from the bank that i can now choose reduce my monthly installments since the BLR has been reduced...or I can retain my existing figure of installments (which i think is good as well, as it'll probably reduce my overall tenure in the long run)...

any opinions on this?

I also received letter from PBB said my installment prepayment drop by abt RM100 but I had decided to continue the same prepayment since I had used to the amount paid (scare later reduce the payment donno where the extra $$ spend :tongue: ) & additional can reduce the principal faster & can save on interest...

But u got to bear in mind some bank do not ask u agreement on the reduction & they will auto debit the new prepayment amount automatially... coz this bank tactic to earn more interest.

yeah mine's pbb also...

anyway, me too i'm wondering, if i continue to pay the same amount will the amount be reducing the principal fully... or put aside as advance payment (which doesn't reduce the principal)....

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sorry to sidetrack a bit...

i received a letter from the bank that i can now choose reduce my monthly installments since the BLR has been reduced...or I can retain my existing figure of installments (which i think is good as well, as it'll probably reduce my overall tenure in the long run)...

any opinions on this?

I also received letter from PBB said my installment prepayment drop by abt RM100 but I had decided to continue the same prepayment since I had used to the amount paid (scare later reduce the payment donno where the extra $$ spend :tongue: ) & additional can reduce the principal faster & can save on interest...

But u got to bear in mind some bank do not ask u agreement on the reduction & they will auto debit the new prepayment amount automatially... coz this bank tactic to earn more interest.

yeah mine's pbb also...

anyway, me too i'm wondering, if i continue to pay the same amount will the amount be reducing the principal fully... or put aside as advance payment (which doesn't reduce the principal)....

emm... as for my knowledge the monthly payment I used to paid will split in 2 part. 1st will cover the monthly interest incurred then the balance will fully deduct the principal, & if like said I paid more than the monthly installement it will deduct the principal once i deposit....

In another scenario, I am used to take out my EPF to settle the loan principal & while I bank in the payment I will inform the officer that I would like to settle the principal.

Whenever I received the statement every 6 months will shown the principal reduced accordingly....

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my loan is flexi loan. any additional payments made will be considered advances and they will reduce the advance amount next everymonth as loan repayment (i dun pay the loan monthly). the interest is calculated using principal minus advances

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nwb,

We are discussing about asking the Bank to reduce the spread. Usually our flexi loan interest rate is quoted as BLR + x% pr BLR - x %, the +- x% is the spread. For example, my loan used to be BLR + 0.25%, I asked PBB to reduce the spread from +0.25% to - 1.8% so that my interest rate will become BLR - 1.8%, 2.05% lower than my original rate assuming BLR remains the same. Since BLR has been reduced from 6.75% to 5.55%, my total interest rate reduction = 1.25% + 2.05% = 3.3%.

So, it's time for you to look at your interest spread & see whether still within the market rate or not. If it's too high from the market rate, it's time to ask the bank to reduce it even though you are still in lock-in period. If the bank ever give you a reduction, then they will usually lock you in for 5 years from the date of revision despite you have serve part of your original lock in period.

Whether your excess installment will be deemed advance payment or knock off your principal amount, it does not really matter as the bank will net off the principal outstanding against all advance payment before they calculate the interest charges. Despite my PBB loan is not a flexible loan, I will pay more than the installment amount every month in order to reduce the interest charges. The only diff is that I will never be able to withdraw those excess installment while the flexi loan allows withdrawal.

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nwb,

Just maintain the original installment if you afford to do so. In fact I would suggest you pay more if can as it will further reduce your principal much fast in view of the low BLR.

aunties111,

Go ahead to cc BNM. Frankly speaking, you are the only one that I ever know that your existing bank wanna charge you such a high fee for reducing the interest rate. There are more than 10 persons that I know (friends/colleagues) requested for lower interest rate and all of them got it with just paying less than RM100 processing fee.

bunnyNwife,

Yeah, tot so too....

aunties111,

Well, not sure why u need to refinance to get the new rates? UNLESS urs currently a fixed rate package? if yes, then u've got no choice... but the lock-in penalty usually can nego wan.... maybe ur bank doesn't....no idea... sorry

Else like mine, the variable rates package, all i need to do to reduce my installment according to the new interest rate is just RM 10 to reassign my Standing Instruction for payment every month from my Savings to Loan acc.

Well, now I've written to the bank to extend the time for the acceptance of the letter of offer first. As I am looking at other banks which can offer me a better rate and package. At the moment Maybank may be giving me a better offer, So, once I get their letter of offer, then i'll write to the bank again and ask then to relook not only at waiving the fee but also to reduce further the interest rate. If not, I'll just switch to the new bank.

Getting really frustrated with these banks :sauer2:

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What to do... Banks are licensed blood sucker (all sort of fees or penalty clause) and loan shark (look at the credit card and personal loan interest rate - 15%-18%p.a.)...

ya... but recently i got notice from my PBB credit card statement shown there is reduction in credit card interest from 18% to 17.5%

Haha u think PBB so nice and willing to reduce the rate automatically?? It was under the direction of BNM... After all, 17.5% still damn high - not any "generous" than a loan shark...

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nwb,

We are discussing about asking the Bank to reduce the spread. Usually our flexi loan interest rate is quoted as BLR + x% pr BLR - x %, the +- x% is the spread. For example, my loan used to be BLR + 0.25%, I asked PBB to reduce the spread from +0.25% to - 1.8% so that my interest rate will become BLR - 1.8%, 2.05% lower than my original rate assuming BLR remains the same. Since BLR has been reduced from 6.75% to 5.55%, my total interest rate reduction = 1.25% + 2.05% = 3.3%.

So, it's time for you to look at your interest spread & see whether still within the market rate or not. If it's too high from the market rate, it's time to ask the bank to reduce it even though you are still in lock-in period. If the bank ever give you a reduction, then they will usually lock you in for 5 years from the date of revision despite you have serve part of your original lock in period.

Whether your excess installment will be deemed advance payment or knock off your principal amount, it does not really matter as the bank will net off the principal outstanding against all advance payment before they calculate the interest charges. Despite my PBB loan is not a flexible loan, I will pay more than the installment amount every month in order to reduce the interest charges. The only diff is that I will never be able to withdraw those excess installment while the flexi loan allows withdrawal.

icic...

phew~ lucky mine's still ok so far... rate's BLR - 1.65... i've decided to just stick to my current repayment figure to shorten the tenure in a long run.... *fingers crossed*

alrite...good luck to aunties111... hope u resolve ur matter soon.... :D

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nwb,

We are discussing about asking the Bank to reduce the spread. Usually our flexi loan interest rate is quoted as BLR + x% pr BLR - x %, the +- x% is the spread. For example, my loan used to be BLR + 0.25%, I asked PBB to reduce the spread from +0.25% to - 1.8% so that my interest rate will become BLR - 1.8%, 2.05% lower than my original rate assuming BLR remains the same. Since BLR has been reduced from 6.75% to 5.55%, my total interest rate reduction = 1.25% + 2.05% = 3.3%.

So, it's time for you to look at your interest spread & see whether still within the market rate or not. If it's too high from the market rate, it's time to ask the bank to reduce it even though you are still in lock-in period. If the bank ever give you a reduction, then they will usually lock you in for 5 years from the date of revision despite you have serve part of your original lock in period.

Whether your excess installment will be deemed advance payment or knock off your principal amount, it does not really matter as the bank will net off the principal outstanding against all advance payment before they calculate the interest charges. Despite my PBB loan is not a flexible loan, I will pay more than the installment amount every month in order to reduce the interest charges. The only diff is that I will never be able to withdraw those excess installment while the flexi loan allows withdrawal.

icic...

phew~ lucky mine's still ok so far... rate's BLR - 1.65... i've decided to just stick to my current repayment figure to shorten the tenure in a long run.... *fingers crossed*

alrite...good luck to aunties111... hope u resolve ur matter soon.... :D

Thanks nwb. I hope so too *fingers crossed*

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What to do... Banks are licensed blood sucker (all sort of fees or penalty clause) and loan shark (look at the credit card and personal loan interest rate - 15%-18%p.a.)...

ya... but recently i got notice from my PBB credit card statement shown there is reduction in credit card interest from 18% to 17.5%

Haha u think PBB so nice and willing to reduce the rate automatically?? It was under the direction of BNM... After all, 17.5% still damn high - not any "generous" than a loan shark...

Ya I know its annouced by the PM b4 where estimate to reduce from 0.5% to 1% ... yes we always quote bank as "Loan Shark with licensed" :sauer2:

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What to do... Banks are licensed blood sucker (all sort of fees or penalty clause) and loan shark (look at the credit card and personal loan interest rate - 15%-18%p.a.)...

ya... but recently i got notice from my PBB credit card statement shown there is reduction in credit card interest from 18% to 17.5%

Haha u think PBB so nice and willing to reduce the rate automatically?? It was under the direction of BNM... After all, 17.5% still damn high - not any "generous" than a loan shark...

Ya I know its annouced by the PM b4 where estimate to reduce from 0.5% to 1% ... yes we always quote bank as "Loan Shark with licensed" :sauer2:

yeah loan sharks indeed.... high interest, prompt reminders, late interest...u name it...

i recently did a silliest thing by accidentally overpaying one of my cards, and guess wat?...

upon calling them, they'll only refund me in 21 working days...'great' :P

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nwb,

I experienced once b4 where the bank (MBB) overcharge me in my credit card account & the payment done (coz that time I was using SI to make payment) but discover later & ask for refund but the bank said the refund need to be more then RM10 & above then they will only issue cheque & ask us to utilise it by using the credit card to do some purchases :sauer2: I was so frust where I need to bear the responsibilities of the bank fraud....

I was so mad that time coz if we owe them 1 sen only still need to pay sharp sharp if not interest incurred but when come to they owe us $$ all kind of accuses to delay the refund :girl_devil:

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nwb,

I experienced once b4 where the bank (MBB) overcharge me in my credit card account & the payment done (coz that time I was using SI to make payment) but discover later & ask for refund but the bank said the refund need to be more then RM10 & above then they will only issue cheque & ask us to utilise it by using the credit card to do some purchases :sauer2: I was so frust where I need to bear the responsibilities of the bank fraud....

I was so mad that time coz if we owe them 1 sen only still need to pay sharp sharp if not interest incurred but when come to they owe us $$ all kind of accuses to delay the refund :girl_devil:

well ur case still not too bad...

i've heard of cases of ppl recently lost their wallet/purse, and only to find out the thief used their credit cards to make a few ks worth of purchases...

even with the police report the bank refuse to write off the amount, and keep on reminding and prompting them to pay....

some might even wanna take legal action for not paying.... how ridiculous....

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nwb,

I experienced once b4 where the bank (MBB) overcharge me in my credit card account & the payment done (coz that time I was using SI to make payment) but discover later & ask for refund but the bank said the refund need to be more then RM10 & above then they will only issue cheque & ask us to utilise it by using the credit card to do some purchases :sauer2: I was so frust where I need to bear the responsibilities of the bank fraud....

I was so mad that time coz if we owe them 1 sen only still need to pay sharp sharp if not interest incurred but when come to they owe us $$ all kind of accuses to delay the refund :girl_devil:

well ur case still not too bad...

i've heard of cases of ppl recently lost their wallet/purse, and only to find out the thief used their credit cards to make a few ks worth of purchases...

even with the police report the bank refuse to write off the amount, and keep on reminding and prompting them to pay....

some might even wanna take legal action for not paying.... how ridiculous....

ohh... thats bad...

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there was once i paid extra to a bank for credit card. so when the next month bill came, i din go to pay coz the advance is enough to cover the current month purchase. guess what the next statement came and i was charged late payment charges and and also interest. i called to ask why they say coz the advances was in visa and the purchase is master. duh....can't they just make an adjustment. i told them i did not even charge them interest for the advances and in turn they charge me interest. well, the credit card is my husband's and they refuse to waive it unless my husband call. he was overseas then. so angry.

then there is another bank where i paid 12cents less. cost using ATM to deposit. next month, was charged interest RM19!!! again, i am sup-card holder they refuse to waive until my husband call. how stupid, like my husband dun mind paying them RM19 interest for owing them 12 cents.

LOAN SHARKS!

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Let me share my Credit Card story then...

My OCBC card due my 1st every month. 2 months ago when I was kinda sick, I insisted HB rush to OCBC to pay on 1st Feb to avoid any late payment charges. HB went there at 10+pm due to heavy rain and managed to bank in CASH for me. 1 month later, I found tat they are charging me late payment charges as well as interest for all my new purchases!!!!! I called OCBC up and SCOLDed the bank. The officer said that I must bank in b4 10pm in order to be deemed paid on the same day as their system cut off time is 10pm !! WTF... It's cash payment and it should be reflected immediately mah. Damn it !! Anyway I insisted they waive all interest & late payment charges or else I will cancel the card & report to BNM. Haha... they guai guai and waive it.

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Let me share my Credit Card story then...

My OCBC card due my 1st every month. 2 months ago when I was kinda sick, I insisted HB rush to OCBC to pay on 1st Feb to avoid any late payment charges. HB went there at 10+pm due to heavy rain and managed to bank in CASH for me. 1 month later, I found tat they are charging me late payment charges as well as interest for all my new purchases!!!!! I called OCBC up and SCOLDed the bank. The officer said that I must bank in b4 10pm in order to be deemed paid on the same day as their system cut off time is 10pm !! WTF... It's cash payment and it should be reflected immediately mah. Damn it !! Anyway I insisted they waive all interest & late payment charges or else I will cancel the card & report to BNM. Haha... they guai guai and waive it.

As for me, normally I'll bank in cheque to pay my credit card. Sometimes, on the same date or 1 to 2 days before the due date. Sos, of course they'll charge me late charges and interest as the cheque probably didn't clear in time. Well, so far, I've always managed to get waiver for all the charges. I think normally if its only 1-2 days difference they are ok to waive it. But of course, if worst case, threatening to cancel the card is a good way :lol:

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