personal loan is using flat rate. its not use  the same rate like ASB loan facility does. If u use personal loan + saving and put into asb account, u will only get the dividend distributions profit + bonus. Principal you dun get. Plus in the long term PL is much more expensive than asb loan rate even though look higher...go read about Flat Rate vs Effective Rate... You will understand what i'm talking about.

Your idea to use dividend to cover for your housing loan installment is good. But the idea to use PL and put into ASB is very bad idea.

So my suggestion for you

Apply ASB financing / loan facility and calculate how much you need to apply so the dividend distribution can cover for your house loan installments. For example :

ASB Loan 200k
6.75 % dividend = 13500 @ 1125/month

so if your house loan installment range is between 100-1100 than you can use the dividend to pay for the installment. For the asb financing installment you pay using your own money. This is what we call switching payment method.

When you finished your housing loan, you terminate your asb loan and you will earn the last dividend + any extra dividend balance (after paid house installment) + principal surrender value + available asb bonus

Calculation example


first year

Apply 200k asb
30 years
1100/ month

2nd year
apply housing loan
20 years
1000/month

After 21 years your housing loan is settle and terminate ASB financing. Look at below how much you get roughly.

Last dividend = 13,500
Dividend balanced x 20 years = 2,500
Principal SV = 105,754
Total earning = 121,754

If you use PL facility + ASB saving

you will only get
Last dividend = 13,500
Dividend balanced x 20 years = 2,500
Total earning = 16,000

Which one you will get more? Use ASB financing / loan method or PL + ASB Saving method?

Extra Note :
Your PL monthly is 1780 which is more than asb financing only 1100 or less...why should you use PL instead of ASB Financing? Both are loan facility. But with ASB you will get more...

First you need to confirm with the bank your current loan is no lock in period. If it does than you can terminate and reapply without any penalty. But take note whenever u apply for termination u might paid more interest for that month and still pay your installment until your termination process complete. If not, bank will take the unsettled payment first than after that will refund available principal into your bank account.

Most people terminate and reapply to get better rate, apply with no takaful, max loan tenure and so on.

Some people terminate and reapply because they want to get the cash in hands.

Last minit promotion utk pembiayaan asb bank sotong dan ambank.

Abam akan belanja yuran proses RM63 utk mereka yg mohon pembiayaan ASB 200K bagi ASB atau ASB 2 atau kedua2nya sekali

Bank sotong rate 4.8% - ASB shj
Bank ambank rate (4.75%) ASB dan ASB 2

Mesti submit permohonan sebelum @ pada 30 november 2017 utk layak dpt promotion ni

Sometimes the process will take longer because too many apply asbf. Even my cimb client take more than a month some of them after 3 month than the loan is approved. That after many email i sent to the officer in charge of the loan. If not i think it will take longer or never approve at all.

Give it a bit more.. It'll come through.

Edit... How many days since loan approved and today?

usually after approved loan it only take about 1 - 2 weeks to disburse into your asb account. If more than that please contact the officer who process your loan.

If it's from your own pocket then both option also should be the same. Just that if you paid yearly you won't mistakenly used the allocated money for the installment.

If talking about maximum return, you can also put the allocated cash money in ASB (if you still have the quota) or ASB2 and transfer the cash to your loan/financing account every month. The extra profit is not that significant but if you think it is worth it, why not? Also can consider paid your loan quarterly or biannually.

You're still missing the point. For this asbf, I would always wanna be at max loan tenure. Settling the loan is never on the agenda. How much the bank makes from me is irrelevant. Its about how much ROI I make. To get max ROI is keeping your repayments low. And getting back amortised value.

I'm too lazy to give figures... I've done so many times in my previous posts before haziq and wild card came on the scene. And when these two workhorses came on, they gave even more detailed calculations than I could ever give.

My advice, just read the posts. In the end, if you're still unconvinced, go with your gut and trust your calculations. As long you're still making money that's fine.

But if you wanna max your returns on investment, however you slice it... Max loan tenure is the way to go

As a real life example, I've just reached 7 figures, and I've still 25-27 years on the loans to repay...

Yes once the potong gaji already reach the 18k cap, your deduction suppose to temporary disable because u already reach your cap until you received dividend next year.

How to buy a car and get money by combine asb financing

Here is the step you need to do.

Assume your car loan installment is 800.00. Meaning 1 year RM9600

Search for a loan amount that can give dividen more than 9600 a year.

For this calculation i will take 149k loan because the installment is almost the same with the car loan RM800 and the dividend is more than 1 year car repayment.

Better apply the asbf a month early before january so can get full dividend next year.

1st year 2019 have 149k asbf. At december 2019 buy your dream car.

2nd year at january 2020 received 10,430 dividend out of 149k. Use 9600 from the dividend to pay for 1 year car repayment. Use the money to pay for the car loan to pay your asbf every month.

Repeat the 2nd step for the 3rd year onwards until year 10.

After 10 years make asb financing and 9 years car loan repayment terminate your asbf.

You will received ;

Prinsipal sv - 27,800
10th year dividend - 10,430
9 year dividend surplus - 7470
Total earning - 45,700

By combining asbf and car loan you will received 45,700 after 10 years. Is this a good amount of money???

-haziq-

If no payment 2 month in a row, the loan facility will auto terminate and will be record in ccris. If this happen next time if u want to request for other loan bank might not approve it.

If the person died yes the deceased family need to bring the death certificate to the bank and request to terminate the loan. All the money in the asb acc will be transfer to amanah raya berhad. The heirs need to process the release of the money through there. Distribution will use the faraid law.

Same if u apply with takaful. It will also through the same process and will distribute use the faraid law.

Nope, because the principal that you have paid to the previous bank would be returned to you. You can further reinvest this funds into other ASB funds like ASB2, ASB3 or in other unit trust funds

You are correct. But your terms are off and that would create some confusion so I will address that.

1. Loan principal or loan balance is the terms used to refer the balance that you owe the bank. In this case, you can pay this loan balance to settle the loan. For example, if you borrow RM200,000 with a tenure of 40 years @ 4.75%, after 5 years you decide to end the financing, your loan balance would be RM190,549. Please refer to the amortization table below



2. Now, if you were to refinance today, you bank will sell the RM200,000 certificate, take back whatever is due to them, which is the current loan balance of RM190,549, and return whatever is left to you which is RM9,451 credited into your savings/current account you have with the bank

3. Sure, when you refinance you would start this loan balance at RM200,000 but everything is done with good intentions. You would have RM200,000 ASB certificate to generate its own distribution, and an extra RM9,451 for further reinvestments.

4. The objective of ASBF is not to settle the loan account, but to generate as much distribution income by holding as much capital as possible - because the distribution is paid to you based on the capital that you hold. The more capital you hold, the more distribution you would earn

5. If you look at the amortization table above, you will find that as you pay your installments, you would be paying more principal and less interest. You are correct in that sense, I simply do not want you to mistake the principal repayment for the loan principal