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Old 14-06-2019, 03:57 PM   #2
Orphan
Senior Member
 
Join Date: Nov 2018
Posts: 548
Hi was recommended by dealer to take up No Early Settlement Rebate to get loan discounts.

What does it mean?
Using a 5 year loan as example:
When you get a 5 year loan, you can do early settlement before the full 5 years to pay off everything. This way you save on total interests that the bank charges you. (There's normally a penalty to pay, but will be less than the remaining interests).

So for your case, the bank is willing to give you some rebate if you dun try to settle early. They lose a bit of earnings, but potentially keep you as a customer in their books, and can reach out to you to recommend other products.

They might even still give you an option to settle earlier, but charge more penalty than normal.

Last edited by Orphan; 14-06-2019 at 03:59 PM..
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