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Old 14-06-2019, 03:59 PM   #3
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Join Date: Mar 2016
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When you get a 5 year loan, you can do early settlement before the full 5 years to pay off everything. Thus way you save on total interests that the bank charges you. (There's normally a penalty to pay, but will be less than the remainung 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.

Thanks for the reply. Does it affect if I take up a loan of 7 years with no early settlement rebate.. But I sell the car at the 3rd year?
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