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 ASB loan, worth to get it???

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Leo the Lion
post Jul 29 2013, 10:26 AM

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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).
laugh.gif

Need advice!

Thank you

This post has been edited by Leo the Lion: Jul 29 2013, 10:29 AM
Leo the Lion
post Jul 29 2013, 03:13 PM

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

This post has been edited by Leo the Lion: Jul 29 2013, 03:19 PM
Leo the Lion
post Jul 31 2013, 05:40 AM

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QUOTE(solsekuin44 @ Jul 31 2013, 06:36 AM)
What makes you changed your mind?
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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
Leo the Lion
post May 27 2019, 12:48 AM

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I want to clarify the things with ASBF.

Say I take 200k ASBF with profit rate 4.9%, maxed out 30 years.

If return dividend is consistent between 6%~6.5% then it would be RM12k~RM13k per year.

And if I want to surrender the cert say after 2-3 years of financing, total dividend I will receive will be RM24~36k (if dividend return is 6%), am I correct? That makes overall return for 3 years = RM9,472.19 + RM36k = RM45,472.19 or 2 years RM6,159.20 + RM24k = RM30,159.20, correct?

And last question, I can surrender the cert at any time but best would be to hold the cert as long as possible, right?
Leo the Lion
post May 27 2019, 01:49 AM

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QUOTE(lotter92 @ May 27 2019, 02:44 AM)
Correct? Not at all. I suggest you read more about interest compounding.

Let's go this way. Based on your case, you took 200k ASBF / 4.9% / 30 years tenure: Monthly installment - 1061

1st year - Dividend (6.5%): 13,000

2nd year - Your dividend will be based on 200k + ACCUMULATED DIVIDEND which you received for last year, so the dividend will be based on 213k. So dividend this year: 13,845

3rd year - Dividend will based on 226,845 (213k + 13,845): 14,744.93

Therefore after 3rd year, your accumulated dividend will be 41,589.93. Of course the longer you hold the cert, the dividend will keep accumulating and be bigger. This calculator would be helpful to see the picture clearer: http://myrakan.com/misc/asb.php
This also doesn't include the surrender value when you terminating the loan, which will be around 9k (if you didn't attach takaful to your loan).

However you need to take into account of the monthly installment you made. So 36 x 1061 = 38,196. So total profit you've made will be around 12-13k for 3 years holding into the cert.
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I was so close and I totally forgot about the compounding interest. Thank you😁
Leo the Lion
post Feb 13 2022, 04:46 PM

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QUOTE(CounterRealm @ Feb 13 2022, 03:19 PM)
Normally you guys get finance for asb with takaful or without? What is the difference?
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If you don't have "hibah", take it.
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