Bank loan. Monthly, Fortnightly or Weekly Payment?

One of the ways to reduce your loan amount is by finding loan facilities which have lowest interest rate. With current economic situation, government may reduce Base Lending Rate (BLR) in order to boost the economy.

However, beside low BLR, Bank also give more discount. Some bank may offer up to BLR - 2.3% for the interest rate.

Another ways is by increasing the number you pay to the banks. Instead of monthly payment, you can pay the bank weekly or every 2 weeks.

Let's assume RM100k loan with interest rate 3.5% (5.55 - 2.00) for 30 years.

Monthly payment if pay:-

Monthly = RM 449.04

Forthnighly = RM 207.16 X 2 = RM414.32

Weekly = RM 103.56 X 4 = RM 414.24

Different per month = RM 494.04-414.24 = RM 79.80

Saving in 30 years = RM 79.80 X 30 X 12 = RM 28728

So, any wonder where the bank got the money?