In a move that benefits both new and existing borrowers, Maybank has officially removed the Early Settlement Fee for its personal loan products, effective 31st March 2025. This means customers can now settle their loans early without paying any penalties — giving them more financial freedom and flexibility.
An Early Settlement Fee is a charge that banks impose when a borrower chooses to repay a loan before the agreed loan tenure ends. This fee typically acts as a penalty for early termination of the loan contract.
Previously, borrowers might have been charged a percentage of the outstanding balance or a fixed amount when choosing to settle their personal loans early. With the new policy, this no longer applies to Maybank personal loans.
The removal of the Early Settlement Fee applies to:
Whether you’ve just taken out a loan or have been repaying for some time, you can now choose to fully settle your loan early without worrying about incurring extra costs.
Removing this fee provides multiple benefits:
Borrowers can choose to repay their loans early — especially if they come into extra funds — without any penalties or restrictions.
Early repayment means paying less in overall interest, reducing the total cost of borrowing.
You can become debt-free ahead of schedule, which helps with overall financial planning and peace of mind.
This move reflects a positive shift in the banking industry, focusing on transparency and consumer empowerment.
If you’re a current Maybank loan holder and have the ability to pay off your loan early, now is a great time to do so. Review your financial situation and consider the interest savings that come with early repayment.
If you’re planning to apply for a new personal loan, the removal of the Early Settlement Fee makes Maybank an even more attractive option compared to lenders who still charge this fee.
Maybank’s decision to eliminate the Early Settlement Fee, effective 31st March 2025, is a customer-friendly change that empowers borrowers to manage their finances with more freedom. Whether you’re looking to pay off your debt early or planning to apply for a loan, this update offers more value and flexibility than ever before.
