Redraw Facility

Redraw facility is a loan feature that allows you to make additional repayments and withdraw them anytime. It is one of the most utilized loan features and is offered by most commercial lenders. It allows borrowers to reduce their interest and shorten the life of the loan, while keeping their funds within easy access in case of emergencies. There is usually a one-off fee to activate the redraw facility. Some banks set a minimum and/or maximum redraw amount and charge a transaction fee every time you withdraw. Others offer a limited number of free redraws and will charge you for additional redraws.