How To Do Housing Loan Full Settlement at Al Rajhi Bank?

If you want to do full settlement for your housing loan at Al Rajhi, you can follow these steps.

1) Request for Redemption Letter

You send your request to and Al Rajhi will charge fee of RM10. So you need to have RM10 at your saving accounts where Al Rajhi deducts the monthly installment.

2) Fill in the form & submit it at any Al Rajhi branch.

The customer service will give you a form to be filled in. Fill in the form and submit it to any Al Rajhi branch. You must ensure your mailing address is up to date so you can receive the hard copy full settlement letter.

3) Al Rajhi will send full settlement letter via email and by post.

One to two working days you will receive your full settlement letter via email.

al rajhi full settlement letter
al rajhi full settlement letter

Full Settlement of My Housing Loan with Al Rajhi

Finally I fully settled my housing loan with Al Rajhi bank on 20th September 2023. I took the loan in April, 2010 with tenure of 35 years. At the time I want very low monthly installment that why I have very long tenure.

I started to reduce the principal slowly in May, 2021 then fully settled it by September 2023.

Details of My Housing Loan

Loan Amount: RM115,600
Average Interest: 4.25%
Tenure: 35 years
Start: 30th April 2010
End: 20th September 2023
My loan duration before full settlement: 4892 days / 13 years, 4 months, 22
Total prepayment: RM89,948.88
Paid Interest: RM57,659.82
Total interest: RM106,716.69
Interest saved :RM49,056.87 (RM106,716.69-RM57,659.82)
% interest paid: 54% (RM57k/RM106k)
Principal paid during my loan payment: RM25.651.12 (RM115,600 – RM89,948)
For 13 years per month only paid principal = RM25,651 / 161 months = RM159
Total payment during 161 months: RM85,169 (RM529 x 161 months)
Monthly payment: RM529.33


First 13 years, I paid 70% interest! Only 30% towards principal.

For further reading

Housing Loan Amortization Analysis