what if i have the money to repay the loan for the 1st year and 2nd year started use to dividend to repay the loan. i don have to worry bout the repayment. do u think its great idea to take the loan?

like i have mentioned previously, mathematically speaking, you are winning

but the real winner here is the bank - they earn 5% off interest from you

you on the other hand, will have reduced loan eligibility, long term commitments to the loan and such

but i'm not saying the loan is bad. i myself has an ASB financing solely to build up my credit profile as advised by the bank manager

ASB loans u can take, but don't be greedy & take straight 200k when your salary/income so-so only. 1st take small amount like say 50k. u take huge amount loans, it can effect your credit rating.

just my opinion.
your money your decision

What's the interest rate like ?

if I'm not mistaken BLR -1.65%

The BLR is about 6.60% now right ?

yup. it may increase soon

I heard ASB2 loan would be offered soon

yes , they start offering this loan starting from 15/04 for maybank. RHB and CIMB i am not so sure.

Guys, regarding asb loan, I am planning to take a loan for saving into ASB.
Reasons why:
1. Want to discipline myself on saving money.
2. Lazy to go to post office every month for manual saving.

My current salary is RM2.5k per month before EPF ans Sosco deduction. And I have no other loan commitment. Only room rental +utilities +food expenses. Now I am 25 yrs old and don't plan to buy car for now.

My plan is to take RM100k loan with RM657 pay per month in 20 years. It is a good choice for me? I am plan that for second year and above I will use dividend to pay for loan. Only first year have to suffer pay rm657 per month.

Any advice? Thanks

what is the difference between asb1 and asb2?

i suggested u to buy property first than asb loan...
asb loan u can take 50k loan after that
no need to rush in investment

If I buy property, I need to pay deposit right and EPF 2 account also need to have certain amount?

ASB
Type - Income
Category-Equity
Launch Date- January 2, 1990
Objective-To generate long-term, consistent and competitive returns to the Unitholders whilst ensuring the preservation of capital at minimal risk tolerance level.

Approved Fund Size -Unlimited.
Sales Charge-None
Redemption Charge -None
Payment of Redemption -On-the-spot.
Cooling-off Period -None
Financial Year End - December 31

ASB2
Type -Income
Category -Mixed Asset
Launch Date -2 April 2014
Objective-The Fund seeks to provide regular income stream whilst preserving the Unit Holder’s investment capital through a mixed asset portfolio.

Approved Fund Size-10.0 bilion unit

Sales Charge- Currently, the Manager does not impose sales charge. However, the Manager has the absolute discretion to impose sales charge of up to 1% of the invested amount.

Redemption Charge -Currently, the Manager does not impose repurchase charge. However, the Manager has the absolute discretion to impose repurchase charge of up to 1% of the repurchased amount.

Payment of Redemption Money -Under the Guidelines on Unit Trust Fund, the payment of repurchase money is allowed to be made within 10 days upon receipt of repurchase request. However, the Manager will endeavor to pay on-the-spot.
Cooling-off Period -Nil
Financial Year End -March 31

This post has been edited by davinz18: Apr 13 2014, 10:07 PM

U can use own $ to pay deposit

i would suggest you to take RM50K ASB loan first instead of RM100K. for now it seems like you can afford the 100k, but do account future commitments into your loan consideration.

Wow! Thats a high interest rate.

So ull end up paying about 4.95% for an ASB loan and with the BLR expected to go up soon by 25 basis points, we would be looking at BLR 6.85 - 1.45 = 5.40%. Assuming ASB2 dividends are 7.70%, your nett profit is only 2.3%.

Darn!

Save up and get a property first. U cant live in your ASB account.

just finished open my ASB 2 and dump 5K each in ASB2 /AS1M.Gooding yo.

Why would you dump into AS1M when you have ASB2?