How much does early settlement save?
Enter your loan details and how many instalments you've paid. See the amount to settle in full, the interest you save, and the effect of paying off part of the loan.
Figures assume you settle right after an instalment, so no extra daily interest has built up. Settling between instalments adds interest for the days since your last due date. We don't charge an early settlement penalty.
How it works
Each scheduled instalment carries interest of the outstanding balance × annual rate ÷ 12, so paying the balance off early means the interest in the remaining instalments is never charged. Interest you've already paid isn't refunded, because you had the use of the money.
Worked example: RM 20,000 over 24 months at 4.9% p.a. has instalments of RM 876.53 and RM 1,036.76 of interest in total. Right after the 6th instalment, the balance is RM 15,181.87. Settling then saves RM 595.71 of interest. Wait until after the 12th instalment and the balance is RM 10,244.49, saving RM 273.91.
That's why settling early saves the most in the first months of a loan, when more of each instalment is interest.
A partial prepayment (at least RM 1,000) reduces your balance, and the remaining instalments are recalculated over the same number of months, so your monthly instalment goes down and the end date stays the same. In the same example, paying RM 5,000 extra right after the 6th instalment lowers the instalment from RM 876.53 to RM 587.86 for the remaining 18 months and saves RM 196.17 of interest.
The figures assume you pay right after an instalment. Between instalments, interest is added by the day at the annual rate ÷ 360, for the days since your last due date: on the full balance if you settle, and on the prepaid amount only if you prepay part. For example, settling the RM 15,233.10 balance 10 days after the 6th instalment adds about RM 26.66. Your adviser confirms the exact amount for the day you pay.
Questions
Is there a penalty for settling early?
Not with AXAI Credit. You pay the remaining principal plus interest up to the day you settle, and nothing else. Ask your adviser on WhatsApp for an exact settlement quote.
How do I actually settle?
Message your adviser with the date you want to pay. They'll send the settlement amount for that date. Pay it by bank transfer, FPX or JomPAY to the lender's official account in your agreement, send the receipt, and ask for confirmation that the loan is fully settled.
Is it better to settle in full or pay part?
Full settlement saves the most interest. A partial prepayment (at least RM 1,000) keeps some cash for emergencies while still lowering your monthly instalment; your end date stays the same. Keep a few months of expenses aside before using savings to repay.
Should I use my savings to settle early?
Compare what the savings earn with what the loan costs. Money in a savings account or fixed deposit usually earns less than the loan's interest rate, so repaying often comes out ahead. But keep an emergency fund first: if you empty your savings and something goes wrong, you may have to borrow again at a higher cost.
Why is my actual settlement amount slightly different?
This calculator assumes you pay right after an instalment. If you pay between due dates, your exact figure adds interest for the days since your last due date, and it also reflects any payment that hasn't been recorded yet. Your adviser will confirm the amount before you pay.
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