yes sure u can if saving 1667/mth:-



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may i know what is the current interest rate % for asb loan? is it lower than persona loan?

THX

I am planning to apply ASB loan today. But I have a few question that I want to ask;

1. Which bank will you recommended? From what I've read here, most people recommend maybank.

2. My basic salary is RM22XX, but if add my monthly allowance(usually earned by going outstation) I can get total of RM2600-RM3200 per month(not fixed). Is it recommended that I take RM100k loan for 20 years(Need to pay RM620-RM640 monthly)?

There will be an increment this September, but I don't know how much that I will get. And yes I know for first and second year it will be a pain, but I don't have many commitment now(only have car loan).


Need advice!

Thank you

This post has been edited by Leo the Lion: Jul 29 2013, 10:29 AM

How does this ASB loan work?
Does the ASB book show the loan amount as well?

Ok I cancel from applying ASB Loan. Start off with savings. Need to discipline myself.

This post has been edited by Leo the Lion: Jul 29 2013, 03:19 PM

What makes you changed your mind?

This post has been edited by solsekuin44: Jul 31 2013, 05:37 AM

This year need alot of money to use, especially for my little sis wedding, and my part-time degree education. By doing saving, I can easily manage my ASB without being ikat by banks

Good I'm saving on my own too.

so fast changing mind ... ..

For me, ASB loan is good with this mindset: "susah susah dahulu, senang senang kemudian". Pay the loan for 1st year and wait for 24 years to get money. .

I have a tips not "too struggle" in first year. If you want to get ASB loan, mid year is always the best time to get it.

Some wonder why?
Answer is you actually pay half of monthly commitment but it takes one and half a year.

Some wonder how?
Pay monthly commitment with dividend in second year.

Some still wonder how?
My calculate is when apply in June 2013 and my first payment will be due in July. July-December 2013, you are earning dividend. I myself took 200k loan for 25 years and paying RM1190 monthly till December. In early January 2014, I will get dividend, say 8%, I will have RM8000.

Use the dividend as monthly "subsidy". RM8000/12 = RM666

So, my payment on January-December 2014 that I USE MY OWN MONEY is: RM1190-RM666 = RM524!

Based on record, January 2015 onwards till the rest of tenure, I spend RM0 of my own pocket and get RM200k at the end of tenure. Sounds a good deal? Definitely!

ASB never fail to pay dividend at least 7-8% a year. Based on record for 20 years, we are pretty safe but anything can happen in the future. As for now, take the opportunity. Malay is a bit lucky in this country. If ASB open to non bumi, I guess, ASB will be fully subscribe in no time. .

hmm make sense!! I am gonna start applying next year June! thanks for the tips

Hey, you just open my eye. Well done. Maybe I will apply next year.

If asb profit is less than 7% so whats the strategy?

How about if blr raise..? Do we have plan b to avoid blr effect to lasb roi or revenue of dividen.

I want to know olso..

As far as I remember, ASB never fail paying at least 8% annually (dividend + bonus). To drop dividend below 5% in next few years is unlikely unless PNB doing really bad in their investment or economy turns to worse in history. So, for next few years, we are pretty safe based on current economy situation. Strategy? read next post.

If BLR raise to a new level, it will not be more than 1-2% to a total of 7.6% or 8.6%. With most bank offering ASB loan at BLR -1.6%, you are paying interest of 6% or 7% (if BLR really raised) which still positive cash flow compare to 20 years of ASB dividend data.

Lets Makes thing the worse ever, BLR raise to 15%, with islamic loan, we are protected by maximum BLR (profit in islamic term) capped at 10.x%. With bank discount on BLR -1.6%, you are actually paying interest about 9%. Even worse, PNB doing bad and ASB dividend drop to FD level, 3.8% p.a, we are in negative cash flow at 5.2%. In terms of business point of view, losing 5.2% is nothing compare to potential profit 1400%!

If the above scenario really happens and you don't like -ve cash-flow, you may always cancel your ASB loan and get your money back (as well as insurance you paid for and of course, pro rated).

if u have money, self saving is definitely better compared to ASB Loan since u dont have to bear the loan interest
if u dump your money in ASB RM100k, at the end of year u will get full dividend 7%
if u get an ASB loan RM100k, at the end of year u will get dividend 7% minus loan interest 4-5% which mean u only enjoy 2-3%.
but in real case, there's not many person that have rm100k cash in saving. thats why they prefer ASB loan.

i think u miscalculate one thing which is prorate.
ASB dividen is distributed based on prorate.
if u get your ASB loan certificate in the middle of june, u are actually gain 7% interest only for 6 months, not full dividend.
its a rule of thumb for every bank and every financial institution. there's no way these companies will pay full amount.
if your theory is really true, then the best way is to get the ASB loan certificate on November! u pay for 1 month for december and u get interest for RM200k in january but there is no possibility to happen

at the end of year, ASB will distribute dividend + bonus. even if BLR is less than 7%, u still get profit from bonus.
dividend % is calculated base on yearly account which is interest % x months of saving for one year
bonus % is calculated base on certain period which is from last 5 years of saving x interest %.
therefore, even though the BLR is equal to 7%, u can still gain minor profit from ASB bonus.
but of course, to avoid the risk, its good to cancel the ASB loan if BLR goes lower than that.

Mate,

RM8000 dividend I mentioned in previous post based on 6 months dividend for RM200k loan.

RM200k x 8% dividend = RM16000/year.
6 months = RM8000.

So, my theory is right but getting ASB loan on November is not a good idea. . June-September would be the best time to get based on my own judge. .

true...becuz whole year dividend for 200k at 7% would be 14k