since there is an issue on syariah compliance for asb fund so now maybank only offer conventional loans

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Added on September 9, 2011, 1:59 amyes ofcourse. when you apply loan they will check your income and commitments (which include credit card, car loans, asb loans, any other loans/commitments)

what i would suggest is if you plan to take both (housing and asb). secure the housing loans 1st. the reason being, housing loans require central bank approval while asb loans is branch approval. you should already see which is easier to obtain

This post has been edited by rokai88: Sep 9 2011, 01:59 AM

Hi firstly sorry if im asking a silly question..

i have taken ASB loan from cimb (65k for 20 years).

the monthly payment is RM 440 per month.

My plan is to use the dividend which i will get next year to pay for the loan monthly payment.

my question is, if i pay the bank using all the dividend money, for example, in January , does it mean that i will not going to have to pay, say, 10 months of monthly payment?

thanks in advance..

Loan Taken: RM65,000.00
Monthly: RM 440.00

The amount you would have to pay for a year of montly payment is: RM 5,280.00

Let's take for example, we get 7% from ASB for each year.

The dividend you would get for the first year is, RM 4,550.00, you still owe bank another RM 730.00, and this would answer your question that the dividend will cover 10 month of your monthly payment.

I suggest that you take up more years and more RM on the loan....
for example a loan of RM200,000.00 of 25 years tenure, at RM1164 per month (maybank)

The dividend you would get for the first year is, RM 14,000.00, you owe bank @ RM 13,968.00 per year. On the second year, if you decided to use up all your dividend to pay for the monthly payment, you still have RM32.00 extra in the asb (along with the RM200,000.00 from the loan that does not show up on book)

hope that helps. This is just a rough calculation. Kindly approach an expert on the matter before making any transaction.

Thanks for the reply bro.

for now, i only can afford to pay the current installment of RM440. Maybe i will take another ASB loan in the future, but not now.

1 more question to add, is it possible to pay the bank straight away 10 month installment? So that i didn't need to pay the installment for 10 months in return?

If its possible, this mean i will have extra RM440 per month for 10 months next year

It is possible, but not advisable. I suggest you pay monthly, this is because, if you take it all out, the dividend count on the first month would be on the RM65,000.00 you put in. If you take it out monthly, the dividend will be count on RM 69,550.00, RM 69,110.00, RM 68,670.00 and so forth... this would maximize your didivend potential for the next year.

Thanks bro for d advice, really appreciate it

kindly refer to a more experienced asb player before you make any transaction, as I'm quite new to this as well

Yup, will do

any chance cimb going to give the 25 years loan for asb?

hi.. let say im still a student. so housing loan is still far away.

is it advisable to get this loan
starting at 30k.

i think only rhb provide 25 years, but their interest charge is higher @ blr-1.2% other banks are giving blr - 1.65%

The beauty is if u take 200k loan for 20 years, and serve the monthly instalment of rm1200 per month, with the power of compunded interest u can easily become a millionaire in 20 years. The only affort is to serve tge monthly instalment promptly and believe the power of compounding. Bumiputera is forced to become a millionaire if u follow the scheme.

Unfair advantage it is, but in 20 year some may says 1mil may not be much, I will like to reiterate, it better than nothing

I don't think so.

if u're fresh grad and just working, dont go taking max loan...yes u can rolling back the money but do think bout other loan as well. car loan, house loan. u might not be able to take them unless u salary is freaking big~

ASB return is highly stable and the fluctuation is small.

Take up the loan and you will reap the profit earned via higher interest rate offered by ASB.

Yung Seng is right. There is but one bane, you must be able to make monthly payment for the loan you borrowed. Depending on the loan payment years, you will benefit in the end.

I borrowed RM100k form Maybank with an installment period of 10 years. So in the end, based on my calculation, I will earn ~RM20K.

Up to you to consider if paying the loan every month is worth it though.

To get Max return, what u shold do is:

1- take the longest tenure (this will make the return higher. eg: loan 30k,monthly RM175, if the dividen is 8%, ur total return of the year is actually 14.3%. U Pay RM 2100, but ur dividen RM2400, Instant Profit RM300 that year. 300/2100 = 14.3% - Not to forget, you will get the RM30k in 25 years time. Every year profit 14.3%, after 25 Year another Grand 30k. waha!

2 - Split ur ASBloan acc. eg: instead of just 1 ASBloan RM200k, u can do multiple account like RM30k x 5 account + RM50k x 1 Account. The best thing here is if you suddenly hit a jackpot (Bonus/jual tanah,ETC) u can closed 1 account. Or u never roll the dividen, each year get RM16k Dividen. 2 years accumulate, RM 32k, so closed one of the account. Your monthly reduced & now u own 30k of Normal ASB, not ASBloan. By repeating this method, u'll Get your RM200k in ASB within 10-12 Years time. High disipline needed.

All da best!

just found out if we do the loan, we'll get the loan amount deposited in certificate form into our ASB account. how do we check if the loan money is deposited already then? cause if we update our book it won't show the money in certificate form..please correct me I'm wrong.

i guess it will only be shown on the annual statement

Or you can liase with PNB, direct Check