Serani/Portugese are considered Minority that allowed to invest in ASB scheme. This group shd be considered Bumi by defination, as this group of ppl already in Malaya b4 the Srivijaya/Majapahit influence to Malaya. But then many states (except for Melaka) do not recognise Portugese in other states, like in KL/Selangor, they do not enjoy bumi discount when buying property in these states.

I just met Maybank to enquire on the ASB loan. So far i feel its worth because ASB calculate divident by monthly min balance. So ASB will count our dividen base on the borrowing amount which is bigger compare on self money saving.

They told me for the first year we just need to pay rm300 per month but the following years we only need to pay rm88 after deduct the dividen of 7% up to 15 years of loan duration.

Now im not sure which bank is offer better between CIMB and Maybank. Maybe someone can advise.

Thanks.

Yes you can get the dividend to pay the loan and principal, but if you calculate properly, you can get much more by paying direct to ASB.. your choice of whether you want 100k or 300k. If you keep paying the loan with dividend basically your money will not grow for the next 25 years. Inflation will eat you alive.  Look at the calculation of my last reply. 

i am currently doing a research on asb loan as i am considering to go for it. been reading few pages back, notice ur post and i have to say that ur calculation has a serious FLAW.... lol
why? if let say a person takes the asb loan, pay the first year using own money but 2nd year and consecutive years, use dividend money to pay the installments, wouldn't it be that the person will have extra income from his annual as his salary is not touched to pay the installments? and that extra income can be used for other purposes such as other investments etc... i once calculated this before, in the end, the difference between taking asb loan and pumping the asb using traditional way is not much but still in favor of the traditional way.

I suggest you calculate it again in terms of compounded interest, if you pay the installments directly to ASB you will get more returns, with the simple reason that you do not need to pay the bank interest. Not to mention BLR has already increased 2-3 times already...

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Added on July 30, 2010, 9:01 amHere is a sample calculation for those who not able to calculate compounded returns.

Using Maybank- ASB loan financing Table

Calculation 1 : ASB Loan

Loan Amount : RM 100,000
Repayment : 20 years @ BLR-1.65%
Monthly Payment = RM 642 x 12 = RM 7,704 per year
Total payment after 20 years = RM 154,080

Expected Dividend = 8.5% (Based on last year dividend + bonus)
Dividend per year = RM 8,500 x 20 = RM 170,000
Total Returns after 20 years = RM 100,000 + (Rm 170,000 - RM 154,080) = RM 115,920

Calculation 2 : ASB Investment

Monthly Investment : RM 642 x 12 = RM 7,704 per year
Expected Dividend = 8.5% (Fully reinvested)

Total returns after 20 years = RM 404, 375

Well it's your choice if you want to pay the banks or pay yourself? 

so confident ah you?    apart from the point given by masami, common sense speaking, why would u deduct the payment (RM154,080) from the calculation in ASB loan whereas in your ASB Investment calculation, u didnt deduct the outflow of cash aka "payment" in order to invest? your calculation is soooooo one-sided 

a bit confused here....why should deduct for own abs investment??? 

so confident ah you?    apart from the point given by masami, common sense speaking, why would u deduct the payment (RM154,080) from the calculation in ASB loan whereas in your ASB Investment calculation, u didnt deduct the outflow of cash aka "payment" in order to invest? your calculation is soooooo one-sided 

coz he shouldn't deduct the monthly payment from the calculation ASB loan in the first place as we should assume the term "payment" is like the term "saving" in own asb investment. in this case, payment = saving. lol .. dunno whether u get what i mean or not

coz he shouldn't deduct the monthly payment from the calculation ASB loan in the first place as we should assume the term "payment" is like the term "saving" in own asb investment. in this case, payment = saving. lol .. dunno whether u get what i mean or not

this calculation based on my asb loan at maybank.i take this loan scheme since i was 19 and it's already 3 years now.
i paid 429 every month for 15years for my loan scheme.so for those who doesnt know where the 5148 figure at without(w/o) table this is the calculation=429x12months=5148.but for w/o loan table u must remember to deposit that 5148 amount lump sum at the early month of the year coz asb dividend is calculated based on the deposit date.so if not it will be slightly decreased.hope this table can help u guys make a better judgement.if my calculation was wrong feel free to let me know.
Loan   
year initial    dividend profit  balance
1 50000      8% 4000      54000
2 54000      8% 4320      58320
3 58320      8% 4665.6    62985.6
4 62985.6      8%        5038.85  68024.45
5 68024.45    8%      5441.95  73466.4
6 73466.4      8%        5877.3    79343.7
7 79343.7      8%        6347.5  85691.2
8 85691.2      8%        6855.3  92546.5
9 92546.5      8%        7403.7  99950.2
10 99950.2    8%      7996  107946
11 107946    8%      8635.7  116581.7
12 116581.7  8%      9326.5  125908.2
13 125908.2  8%      10072.65 135980.7
14 135980.7  8%      10878.45 146859.2
15 146859.2  8%      11748.7 158607.9
                    Paid      77220
                Nett Profit    81387.9
   
   
Assumption   
no dividend withdrawal for 15 years 
fix dividend at 8% every year 
fix interest rate   
   
Comparison   
profit - 81387.7   
punctual payment   
   

W/O Loan   
year saving initial    dividend profit      balance
1 5148 5148      8% 411.8    5559.8
2 5148 10707.8      8%      856.6    11564.4
3 5148 16712.4      8%      1337    18049.4
4 5148 23197.4      8%      1855.8  25053.2
5 5148 30201.2      8%      2416.1  32617.3
6 5148 37765.3      8%      3021.2  40786.5
7 5148 45934.5      8%      3674.8  69609.3
8 5148 54757.3      8%      4380.6  59137.9
9 5148 64285.9      8%      5142.9  69428.8
10 5148 74576.8      8%      5966.1  80542.9
11 5148 85690.9      8%      6855.3  92546.2
12 5148 97694.2      8%      7815.5  105509.7
13 5148 110657.9    8%    8852.6 119510.5
14 5148 124658.5    8%    9972.7 134631.2
15 5148 139779.2    8%    11182.3 150961.5
                      Paid          77220
                Nett Profit 73741.5
   
   
Assumption   
no dividend withdrawal for 15 years 
fix dividend at 8% every year 
   
   
Comparison   
profit - 73741.5   
must have good discipline to spend for every month
can be withdrawn for emergency

Here I did a simple spreadsheet to compare whether ASB Loan is untung or rugi (compared to investing yourself).

https://spreadsheets.google.com/ccc?key=0An...djMGJqcXc&hl=en

Check it out for yourself.

I suggest you calculate it again in terms of compounded interest, if you pay the installments directly to ASB you will get more returns, with the simple reason that you do not need to pay the bank interest. Not to mention BLR has already increased 2-3 times already...

---

Added on July 30, 2010, 9:01 amHere is a sample calculation for those who not able to calculate compounded returns.

Using Maybank- ASB loan financing Table

Calculation 1 : ASB Loan

Loan Amount : RM 100,000
Repayment : 20 years @ BLR-1.65%
Monthly Payment = RM 642 x 12 = RM 7,704 per year
Total payment after 20 years = RM 154,080

Expected Dividend = 8.5% (Based on last year dividend + bonus)
Dividend per year = RM 8,500 x 20 = RM 170,000
Total Returns after 20 years = RM 100,000 + (Rm 170,000 - RM 154,080) = RM 115,920

Calculation 2 : ASB Investment

Monthly Investment : RM 642 x 12 = RM 7,704 per year
Expected Dividend = 8.5% (Fully reinvested)

Total returns after 20 years = RM 404, 375

Well it's your choice if you want to pay the banks or pay yourself? 

Here I did a simple spreadsheet to compare whether ASB Loan is untung or rugi (compared to investing yourself).

https://spreadsheets.google.com/ccc?key=0An...djMGJqcXc&hl=en

Check it out for yourself.