ok buggie...im correcting my statement

yes u are right about that...

in ASB account it have credit limit. This credit limit will be increasing follow to your total fund in ASB + dividend...

For example if u have 200k and next year u get 14k of dividend then your credit limit will be increase to 214k...but this credit will move on along together (your fund/loan + dividend)...so if you take out your fund in ASB then your credit limit will be reset to 200k...thats why u cant apply for 200k loan when u have 45k in your asb account because of this credit limit.

so if u have 245k in your ASB the best way is to separate the money to 2 portion, 200k into ASB2 and 45k into TH or your wife/family ASB account.

When u take this fund out from your ASB then u can apply for 200k loan. You cant put back the 245k into your ASB1.



i try my best to explain in english... Hope u can understand

sorry for my previous statement... i just clarify it with my upper. It a bit complex to understand about this credit limit. Thanks buggie for asking me to double check

BUT

You can always confirm with the bank how much of unit / loan u can apply. Only give ur IC no and full name to check. Much easier to do so.

This post has been edited by haziqnet: Jan 17 2017, 03:28 PM

Credit limit will be reset back to 200k?

yes i been told like that. When u take out all the fund in your ASB account it will be reset (might have another terms/name)

but you can always confirm with the bank to check what is the max loan u can apply. Only give ur IC and full name. Make sure you already have ASB account.

Cannot afford 200k loan

Hi Bro Haziq, Thanks for taking the trouble to talk to your upper people to get clarification. before I comment on the rest, can I clarify on this first?

I understand that you cannot put back 245K after taking the 200k loan. But can you put back 45k? since the limit was 245k before? So then in the ASB will be 200k sijil + 45k cash

Deleted

This post has been edited by tonytyk: Jan 17 2017, 07:42 PM

So interest calculation starts from disbursement date and first installment payment will be subsequent month?

Correct...

I try to ask my upper but they said u can check it to confirm. It is in the system. They dont give an exact answer but from what i understand when we take out the fund in ASB and then make loan into the account the credit limit will start from 200k again. I cant give u better answer for now. But i will share it here after i get it.

I advice those who are in the situation to ask the bank before apply. Who apply with me i will ask behalf on you. (Only apply to those who have max fund 200k or more in their asb account and want to make loan)

Bro Haziq, hope you don't take this as a personal attack. Rather it's contructive sharing. Please know that I write this from experience of what I have done and gone through.

The ASB limit will never ever reset. Once you've achieve a certain level that will be you limit. If it resets everytime you reaaply the loan, no one will use the terminate/reaaply technique. Because if they do then the ASB account will reset and they cannot compound the dividends. To show that that credit limit never shrinks, please refer to this statement from 2014:-



Ignore the other markings here. Just notice the circle at the bottom. On this account there is a 400k on sijil, and cash 77k with a balance of 477k.. Yet, if you look at the bottom, I can still add to the account the amount of RM 9,433.63 because my account has reached that limit before. To make it clearer, I can take out and put back the 77k cash anytime at will.

I mentioned earlier that I had applied for ASB2 loan. Before the loan, I had 223k cash in it:-



As you can see, the account was zerorised to make way for the 200k loan. And later after the loan was disbursed, I was able to put back the 23,833.00 back making it 223k again (200 sijil + 23k cash). I am able to do this because my limit has expanded to exactly 223,833.58 and it didn't revert back to 200k after it was zerorised to take the loan. In fact, the only reason i didn't put in the 58 cents was because they only deal in RM1 units!!! lol. Although this is for ASB2, but it should be the same for ASB1

Hope this helps clarify things.

Thanks bro...no i dun take it as personal attack...we as consultant know how to deal with calculation, and technique but the other will depend on the info what bank tell to us...with your information and personal proof than it clarify all things that was not unsure before about the credit limit.

I ask the upper but yet they cant tell me details for now...

If it does like u said than your question before already have an answer. Hope we both can help each other to educate other people on how asb works and all the techniques available.

Bro buggie thnks again for the sharing. Im glad to know the right answer for it.

This post has been edited by haziqnet: Jan 17 2017, 11:50 PM

It seems we can now top up the loan on top of the 200k we had. Maybank said I can add 100k loan more for ASB1.

That's awesome. That means PNB has raised the limit to 300k? It's the first I've heard of it but it is indeed great news. Those with 300k size can take advantage of it

You already have a 200k loan with Maybank?

Yes, already have 200k loan for ASB1 as well as 200k for ASB2. They said yesterday I can get 100k more loan for ASB1, just need to bring proper documents since I am self-employed.

Awesome. Will you take it up? and if you do... it would mean taking out 100k to make way for the loan right? Out of curiosity, where would you park that cash?

wow if that is true you can OPM by using ASB1 only which is great. We dont get any new about that for now. Maybe because of your credit limit had been increase to 300k?

This post has been edited by haziqnet: Jan 18 2017, 10:06 AM

Yeah bro, I agree. Withdrawing dividends is a bad idea...letting it compound is the best way forward to financial freedom! But since I was a university student I didn't have any other income to repay the loan, so dividends was the way to go.

Anyway I told my parents of terminating my loan and they kinda disagreed...but I haven't met them face to face yet to explain everything. I guess financial discussions over the phone is not best way to present this.

I saw a lot of subsequent discussions here and am trying my best to follow. Thank you bro Haziq for your sharing here!

Agree bro buggie. I've been living frugally for a year now due to reading a lot about Warren Buffett: I like his style. I now find happiness in things that doesn't cost a fortune.

Hi, I just want to know about the ASB loan. Where will my ASB loan money put after 20 years? In my bank account or ASB account?

I am now borrowing RM199k from RHB Bank for 20 years. After 20 years, that RM199k is mine. This mean, RM199k loan at RHB 4.85% is RM1,297/month. In this RM1,297/mth, RM829.17 is my own money, RM467.83 is belongs to bank interest.

So my future value should be RM311k. So in total, after 20 years, the RM199k is mine but the RM112k is bank interest.

I want to know how is that RM199k works in my ASB since my book does not show that RM199k but just show my dividend and bonus gain. Will that RM199k remain in my RHB bank account after 20 years?

Should be on your asb account unless you transfer it.

In your ASB account. Might need to go to PNB to convert the sijil. I'm not sure. Haven't come to that point yet.



Hmmmmm.... Your future value won't be 311k.

If your use the rolling dividend technique where dividend pays for next year's installments, you would have roughly 199k and you paid 15.5k (first year only) for a nett gain of 183.5k

If you let it compound and don't kacau the dividends, you would have 700k and paid 311k for a nett gain of 389k (assuming dividends @ 6.5% every year)

So you will either see 199k or 700k in your ASB account after 20 years. That's 500k difference!

Don't worry so much about the bank's earnings.



It doesn't show because it is in the form of sijil kept at PNB. PNB then credits the dividend to your ASB. So when it is all over, RHB releases the sijil to you and it's yours.

This post has been edited by buggie: Jan 26 2017, 09:24 AM