Hi everyone, i'm new here. i'm bit confusing about advance loan payment for ASBF. how its work?

Let say i apply loan

Loan = RM 100k
Duration = 35years
Monthly payment = RM505

ok.

SITUATION

every months i paid RM505 from January 2019 Until December 2019, then in early december 2019, i got bonus from my jobs around RM4k. So i decide to make advance payment for the ASBF loan RM3K then i transfer the money in december 2019 in same year and month.

Then this january 2020 i got around RM6k (not include RM3K i trasfered) for dividen, but where is my money (RM3k) goes? it is be deduct for january 2020 until jun 2020 for montly payment or what? so sad.

Otai2 can explain this to me? im such a noob huhu..

@haziqnet

haziqnet knock knock.....
I think TS is in need of your help and are trying to summon you.

Thanks bro

I think best is to as your loan bank. different bank might use different terms.

My understanding your payment pre-payments/advance loan payment will use to pay 5.9 months(jan till jun)

While

A loan reduction payment will take your 3K to offset total still own. This will result shorten our loan period. you still need to pay monthly payment. (loan amount reduce = pay less interest in long run).

My 2 kupang.

The best is still as your bank to conform.

This post has been edited by dreign: Jan 4 2020, 12:04 PM

You should never, ever advance payment for asbf.

To maximise returns, always take the maximum period to pay. This has been explained countlese times in the main asb thread so no point going over this again.

I think this idea better. Just put lump sum money to another place. Normal ASB better too. Thanks 🙏🏼

Thats right. Coz payment period n total loan not change if we transfer money exceed than we should transfer for monthly payment. Right?

If correct what u said the money will be used for 5-6 months then its fine. But still waste for me. If i transfer to a normal ASB account. I get another dividen. Normal asb dividen n ASBF dividen right?

Doesn't matter. To pnb, it's 100k plus 4k (if u deposit directly into your asb account)

To bank, since u paid 4k to bank, u don't need to pay for the next 8 months? Korek me if I'm wrong.

Summon sifu wild_card_my

First of all, the RM3k that you paid goes into your ASBF account, not your ASB account. With CIMB, you should have the option of paying as capital or as advanced payment

Since you didn't clarify you paid it as what I am going to assume that it was paid as advanced payment. This means you do not need to pay the installments for the next 6 months or so based on your monthly installment of RM500/m

btw, the longer ASB tenure is 40-years now, till the age of 65

Thanks for the summon and you got it right

Woww. Up to 40years. Saved money for monthly payment. Hope divident this year higher than last year.