You can write in to the branch to reduce the standing instruction to the new amount.

Must be to the actual branch, not just any maybank.

The loan tenure will still follow the new rate and not your old one. So technically you are actually paying more....

All the excess money won't be put inside your loan account, but 'floating' inside the bank's system.

The 'floating' money also cannot be refunded back into your Standing Instruction-linked account.

I found out about this when I checked my loan statements online thru mb2u, and clarified with Maybank.

Apparently I 'overpaid' almost Rm500 but Maybank won't accept into the loan settlement account.

The solution is to write in to your branch and either ask them to retain the payment or reduce the payment to the new amount based on the new rate. Then do this:

Since my monthly payment is slightly more than RM1000, I just topped up the balance (paying straight to the loan account) and leave my SI account less than RM1000 during the due date (1st day of mth) so that RM500++ overpaid + RM5xx paid directly to loan account = that month's loan payment. The penalty is RM2 because 'not enough funds to do SI', but technically I didn't miss that months payment, jsut that I paid using cash + overpaid and not from account using SI.

The next month, my instruction to retain old amount for SI was approved, so back to normal. So pay more = faster to finish loan.

Or else the bank will untung at your expense.

This is my experience with ASB, did it once with ASW as well.

If withdraw from Post Office, I think RM5k per day.

If withdraw from PNB counter, max. cash withdraw is RM10k. More than that, they write you a cheque.

Bank should be the same with PNB.

true! Even Public Mutual is still in -ve territory...

No, they only keep the certificate (sijil).

You still get to keep your account book, and whatever money left invested through the book.

You can only withdraw the money invested under the account book, for the investment under sijil, you have to sell your sijil.

Since you are taking a loan from a bank to buy the sijil, the sijil is kept by the bank as collateral. So you can't sell it without their authorisation.

The dividend from your investment through book and sijil will be credited to the book though, so you can withdraw the dividends.

As for selling the sijil (effectively terminating the loan), Maybank usually won't let you sell it at least until 2 years into the term (written in my agreement).

I terminated my loan once and entered into another when they offered better terms (lower lending rates when the BLR was cut down 2 years ago).

But now the BLR is up 0.25%, so savings aren't that big anymore.

It's a bit complicated.

1st of all, how do you repay your ASB loan? I assume it's through Standing Instruction (SI) from your acount to your loan account?

SI basically means you empower your bank to transfer a certain pre-defined amount from your account to another account.

Unless you notify them, they will continue with this instruction.

Because you took a loan based on the BLR +/- principle, if the BLR changes, the monthly payment should also change, but since you didn't notify them of any change to your SI, they will assume you don't want to change the monthly repayment.

What will happn is this: it will take longer for you to finish your loan (no longer 240 months), because you are paying less than the actual monthly payment required to finish off your RM10k/240 mth loan.

What you should do now is to find out what is the actual monthly payment for your loan, and then make a new SI using the new amount and terminate the old SI for the old amount.

BTW, since this is already happening for quite some time, you should also ask them to recalculate the amount you owe the bank, because obviously you are now technically paying less than you should.

BTW, my experince was that I took the loan during high BLR (6.75%) and now technically I'm ahead of payment because I did not bother to change my SI amount.

Yes, your monthly payment should have increased.

Easiest way to check the new amount to pay is to go to Maybank, grab one of the ASB loan flyers, and check your actual payment amount at the table.

Or you culd always go during weekday office hours and check and might as well adjust your monthly payment straight away.

BNM has been very active in increasing the Overnite policy rate, which is the basis of the BLR for banks. I am no economist, but the simplest argument is that by revising the rates depending on the world's economic situation, Malaysia may not face a recession like in USA or Japan.

I dunno how they do it, but yes, we are paying the indicated BLR +/- amount.

I also think that as long as they keep giving out ASB loans, the ASB dividen rates will always be high....

You shoud be considered lucky, when I 1st took ASB loan it was BLR + 0.1%, meaning my loan was at 6.85% per annum.

I later cancelled that loan and took another one, it's now BLR - 1.5%...

However, I think 20 years for an ASB loan is too long, my suggestion is to try to shorten it to 15 or even 10 years.

Would save you on interest and you get a profit when you factor in the average dividen rate....

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Added on December 19, 2010, 2:37 amThey were quite late when they informed me that my monthly repayment amount is now reduced.

I just send them a letter saying that I prefer keeping the original amount.

Anyway BNM revised the BLR rate about 3 times this year alone.

They revised the rate in May and then again in July (2 months gap).

So I think Maybank is just being prudent by NOT wasting money printing a letter informing you that your monthly repayment amount has changed twice in the span of 2 months....



This post has been edited by Faidzal: Dec 19 2010, 02:37 AM

Oh shit I sold a few back in Nov. to pay some debts....

Damn, just 7.5%? I was realy hoping for 8% for dividen.

BTW, you guys should know the 'bonus' 1.25% is like tipu only, thy calculate your bonus not from your lowest average investment....

OK, so Sime Darby made huge losses, but other people gained rite? KLCI now 1500?

Or is it true that they used the extra profit and stash in secret fund for BN to use?

BTW, yes, me and wife plonked some money into AHB last week. Maybank Officer say they will target minimum 7% return by September 2011 (closing date for AHB account). But we decided to be better safe than sorry so just put in 1 month combined pay and see how it goes....

Oh, and apparently dividen for AHB will be paid 2 times/year....

My opinion. Feel free to correct me.

Most of ASB investors are poor to lower middle class melayu people.

Despite what you may assume, not many malays are so rich that they have RM200k in their ASB.

Some use ASB as exactly that, a savings account. They save a few thousand, get maybe some hundreds or thousand each year, withdraw the dividend to pay their bills/loans/children's school fees etc.

Also some melayu believe the dividen is somewhat like riba' (usury) and may donate it or use it on their loans which they say are also a form of riba' (so riba' cancels riba'). My wife is one of these type of people (dun laugh, I laughed at her when she explained this to me, end up sleeping at couch that nite...)

I am one of this type of people.

Most people who withdraw dividen are melayu.

Bumi usually keep dividen and withdraw only when necessary....

Apply for ASB loan. Maximise dividen.

cheapest rate is supposedly CIMB.

Easiest to get loan is thru Easy by RHB.

All year round promo is at Maybank....

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Added on January 16, 2011, 12:07 amBonus is a scam....

OK seriously, bonus is calculated from the start of your account book opening until closing of the account for current year.

Unlike dividen which is lowest monthly balance from January to December of current year.

Someone posted the method in this thread before, can try and search for it....

This post has been edited by Faidzal: Jan 16 2011, 12:07 AM