to make everything simple, let's make a few variables as constant. they are:

1. ASB return @ 8% / yr
2. BLR fixed @ 6.85%
3. BLR - 1.85% for the whole loan tenure

whatever the amount and length of loan you choose, you will definitely earn:

8% - (6.85% - 1.85%) = 3%

to answer your question:

1. Yes & No. depending on your financial commitment. if you take an ASB loan, your chances to secure a housing / car loan in the future may or may not be affected by your existing ASB loan

2. you haven't included the loan interest amount. this means that in the 30 yr tenure, the total interest is 22,500 for a 30k loan. in contrast with your ASB investment:

Assuming that you do NOT disturb, i.e. take out any dividend earned:

Year Total
1 30,000
2 32,400
3 34,992
4 37,791
5 40,815
6 44,080
7 47,606
8 51,415
9 55,528
10 59,970
11 64,768
12 69,949
13 75,545
14 81,589
15 88,116
16 95,165
17 102,778
18 111,001
19 119,881
20 129,471
21 139,829
22 151,015
23 163,096
24 176,144
25 190,235



by year 25, you'll have 190k

in contrast with the 22,500 interest charged, you earned a nett sum of rm167,500 over the 25 years


edit: changed the years from 30 to 25

This post has been edited by lucifah: Jun 29 2013, 09:03 AM

As someone mentioned before, why no auto-deduct rm 175 per month until 30 years? let's make a comparison for that (this is a very simple and not too accurate calculations, i can do a more accurate one, but it takes my time, and someone hs to pay for my time)

assuming all variables remain constant, and RM 175 x 12 = RM 2,100 per year is added

1 2,100
2 4,368
3 6,817
4 9,463
5 12,320
6 15,405
7 18,738
8 22,337
9 26,224
10 30,422
11 34,956
12 39,852
13 45,140
14 50,851
15 57,019
16 63,681
17 70,875
18 78,646
19 87,037
20 96,100
21 105,888
22 116,459
23 127,876
24 140,206
25 153,522



you'll end up with 153k at the end of the 25 yr tenure, vs 167k if you take the loan

of course this is just a simple variable, and hasn't included the real life calculations of taking the lowest amounf of the month into the dividend calculation (which will make the final amount lesser)


edit: changed 30 yrs to 25 yrs calculations

This post has been edited by lucifah: Jun 29 2013, 09:04 AM

u can take his advice or u can ignore it

he is not forcing your idea, and no one here is confused by his statement either

I thank you for your explanation as well as time consumed to enlighten me on this issue for start and in advance.

1 - Are we talking about CCRIS, that will kacau me during my house and/or car loan?

2 - If I agree to proceed with this loan, it mean that I will have RM 30,000 credited into my account, and start receiving 8%* dividend per year? And I am paying back to Maybank RM 175 (+RM 5) for 25 years to clear this RM 30,000 loan? Is it the idea?

2.1 - Based on your calculation, by 25 years (based on RM 30,000 loan - if Question 2's answer is yes), I will have nett RM 167,500 within 25 years, and it will be 100% mine?

2.2 - The staff did said that "once you completed the payment for 25 years, you can claim your sijil worth of RM 30,000 in this particular branch". This is the point where I start to confused; I can't integrate the idea of Question 2.1 with her statement.


*example


EDIT : adding some points.
EDIT2 : Bolding Question 2.2, for better emphasization.

This post has been edited by Mr.Docter: Jun 29 2013, 11:01 AM

Thank you lucifah for the comparison.

On the bolded statement, the calculation proves that the loan is relatively more profitable within 25 years.

1 - The PROS of this method (not applying for RM 30k loan) are I will not have problem with applying for future loan for car and house, yes? Do I have any other major PRO with this method?

2 - The CONS is since my starting capital is low, hence my dividen will be not as much as with the help of RM 30,000 loan. Apart from this sole point, do I have any other major CONS with this method?


EDIT : typo.

This post has been edited by Mr.Docter: Jun 29 2013, 10:59 AM

if u do have asb loan and u pay it promptly, it will make your ccris record nicer and asb loan wont be counted during your monthly commitment calculation

From my understand most of the bank would ignore the ASB as a monthly commitment as they knows that the dividend incomes is enough to cover it.
Banks pay more attention to mortgage/ credit card/ personal loan commitment.

Correct thread for ASB but wrong thread for ASB loan

https://forum.lowyat.net/topic/667676 (ASB loan Thread)

This post has been edited by davinz18: Jun 29 2013, 06:02 PM

1. bank will take your ASB loan as one of your commitments, so you will have reduced limites

2. u got it wrong. the bank will issue you an ASB CERTIFICATE worth 30k. they will HOLD the cert for you as collateral against your loan

2.1 yes. 137,500 is in the form of dividend, in your acc while another 30k is in certificate form

2.2 see my no 2. they will surrender the cert to you once you clear the loan

1. you will have more difficulties or maybe easier to loan

for most cases, your available nett income is lesser after minusing your loan, so you will have lower loan limit

for my case (isolated ones), servicing the loan lets other banks know i am a good paymaster. it's not a matter of being able to afford the loan or not, it's more like if you can have loan history or not (they call it credit profiling)

2. see my first sentence from my first reply. whatever you do, having the loan will earn you additional +3% should all variables remain

cons? mayhaps you default the loan due to suddenly being unemployed or something.

This post has been edited by lucifah: Jun 29 2013, 06:34 PM

If you take the loan, the money is not credited into your account. You'll get a certificate (sijil asb) of rm30k. But the bank keeps it.

What you have is your asb book. Where you can update the amount of dividends gained early of each year. You can use the dividends, not the principal amount, rm30k.

to me, if i have money..i keep the value of money back to my revenue.
dun let others 3rd party collect/use the value from my own money to share profit.

my 10cents..

my asb saving http://brunialamira.blogspot.com/

u're good. keep that good habit of saving into asb

Just wanna ask. If one goes for max asb loan, lets say rm200k. Then next year, the dividend will be included in the total amount. So technically ur limit in asb also increase higher than rm200k right? Just curious

yeah, for sure, the limit can only be increase due to the re-invested dividens, but once the limit increase, even after u take out the money, the limit increase is permanent and won't revert back to the original limit

Thank you for pointing me on the right direction!

Thanks for the tips! Nice to know that.

Also <RM200 per month solely for this is not a burden, to be honest, even as a student nowadays. Anyhow I do hope it wont limit my possible loan for house/car soon in future.

Hi,

2 - Even if they hold the cert, what will written in my ASB book soon? If I am not mistaken, the minimum needed to open an ASB account is RM 10, and for example I bank in RM 10 into my account, it will written only RM 10 OR it will written RM 30,010.00?

If only RM 10, the dividen of 8% will be from RM 10 instead of RM 30,000 yes?

2.1 and 2.2 are perfectly clear now, thank you!


Alright I understand now, thanks!

ur book will be written as RM 10

ur 30k is in cert form

when dividends come, it will be based on RM 30,010

the dividend will be refelcted in your book

the cert will be 30k from day 1 until year 25

Thanks! I understand the whole concept now. You are my hero!