Have u heard of building good credit rating by using credit card? By using credit card and paying promptly before due date that itself is sufficient. Bank wont be so hesitant to give u loan after u have build good credit rating.

Yup, this is also a good way. I support the use of cc. But the case I mentioned, he also got rejected by bank for his cc application, which shock me as hell as I thought applying for one is a piece of cakes.

Maybe too clean is a sin.

Never heard of such case before unless his income is less than 2k or he just started working(less than 6 months).

I think that is the case.

hai otai otai and taiko. i just started to work. plan to get asb loan 30k for max duration payback. if i terminated the loan on 3rd year, how much profit can i get from dividend?

This is just rough estimation, you can use excel sheet and http://www.mycalculators.com to do the calculation.

Assumption:

Dividend is 7% per year.
Interest rate is 4.95% at BLR 6.6
Payment for 30 year loan.
MRTA at 1k (This one I am not sure how they calculate MRTA. As mine is around 2k+, yours might be around this)
All dividend is not used, no withdrawal or extra saving.

Loan installment = RM166 per month.
In 3 years, total paid = RM5976.
In 3 years ASB balance will be = RM36987.77
Outstanding loan balance = RM29546.49
Net Worth = RM7,441.28

Profit = NW-Paid = RM1,465.28
Profit per year = RM488.43

Let say the same method for 100k, total loan is RM102,750

Loan installment = RM549 per month.
In 3 years, total paid = RM19764.
In 3 years ASB balance will be = RM123,292.56
Outstanding loan balance = 97,932.75
Net Worth = RM25359.81

Profit = NW-Paid = RM5595.81
Profit per year = RM1865.27

Bigger loan, bigger return, bigger installment.

Cool

ASB is a good capital guaranteed investment scheme thanks to the consistency in its annually dividend rate declaration. As for the loan, the only concerning risk would be the fluctuating based lending rate over time. It is worth looking into it!

i was pretty convinced with my own calculation that taking loan will be more profitable than saving, for case below:

1. Able to commit rm2500/month (either saving or paying loan)

After reading the thread from Page 1 to 37, i m a little less convinced (doubting my calculation) Lol

P/s: annual dividen is calculated on the min balance throughout the year or prorated?

This post has been edited by azeL_Inc: May 13 2014, 09:49 PM

if you guys are interested to know more about ASB please contact me.

name : farid chu

Maybank Loan Officer

contact no : 012-9187775

This post has been edited by falique89: Jan 16 2015, 03:37 PM

hey all - questions.. in the mids of getting an ASB loan.

let say if i have cash 25k in hand. I'll take loan 200k for 10 years. For the first year the monthly instalment will come up to 25k. So if i pay the 25k in hand for the first year, i am settled for the rest of the 9 years right(revenue generated every year will be used to pay the monthly instalment for year 2nd till 10th)? so by the 10th year, i'll have 200k in hand and plus the revenue.

Am right? or is there a better way to go about this?

Thanks !!

Folks,

There is a third way. Do not be too greedy. Use the dividend to pay the installment instead of putting ALL back into ASB. Then, you will not be too stressed on your monthly cash flow. If and when your income level is high enough, then and only then put the dividend back into ASB.

Do not THINK in binary fashion. Money is flexible and can be divided many way.

Dreamer

hello, i suggest u learn the basic of investing first. Learn about the yield of ASB first. Assume ASB yield is at 8%. From the 200K you invested, you will get 16K. Sorry for stating the obvious, 16K is less than 25K, you still have to top up 9K every year.

my bad!! i got it all wrong... i missed that part when the return is lesser than the yearly monthly commitment... so that means ... i gotta go for longer period of repayment.

what would be your suggestion?

backspace66,

1) You are right. But, if the person make the loan last longer like 15 years or 20 years until the monthly installment is only 16K per year, he will not need to top up.

2) With 10 years loan, the 200K is increased by 16K per years. Assuming 8% dividend yield, when the principal of the ASB reaches 312K, he would no longer need to top up. That happened in year 7.

200 16
216 17.28
233.28 18.6624
251.9424 20.155392
272.097792 21.76782336
293.8656154 23.50924923
317.3748646 25.38998917

Dreamer

Thanks that is correct.its either I lower the amount or go for longer loan period.

Actually ASB is a FREE MONEY investment to Bumiputra, just that you need to think of some simple calculation whether you use your own money to invest or take ASB loan still provide good return. Malaysia government already offer such a good benefit but to Bumiputra only laa. So lets put some effort to workout your calculation.

im fresh grad working for 4 months already. nett 2.5k. if i apply personal loan of 10k do u think the bank will approve?

no other commitment now other than pay PTPTN.

This post has been edited by shrimp.kebab: Jun 6 2014, 01:57 AM

should be no problem, try RHB / MBB / CIMB such a small amount very fast and easy to get approval.

Fair warnings to the young bumiputra graduates. If you are thinking of buying a property in the next 2 years, do not get the ASB loan yet. Otherwise, I am all for it as after 2 years the dividend from ASB can be used to offset the loan commitments.