Nope.after 20 @ 25 years, u get back the div + principal.

In short : 25 years : rm 183,825
                  20 years : rm 156,180

Pure profit i think

Hi Mikeshashimi,

Your formula for ASB Dividend is wrong. You did not take into account Compounding Interest. 

It should calculate like this:
Year 1: RM50,000 x 7.65% = RM3825.  So total Principal + Dividend = RM53,825
Year 2: RM53,825 x 7.65% = RM4117.  Total now is RM57,942
Year 3:.......repeat the same till Year 25. (Easier if you use a spreadsheet).

Based on the example, Year 25 you will get RM315,734

At year 20, you will get RM218,399.....

Actually, if you use an example of RM200,000 and ASB dividend of 7.65% - -> you will be a millionaire in 22 years.

BUT the dividend + bonus is average at 8.5%pa - -> so RM200K ASB will grow to RM1 million in 20 years.

You are a FUTURE MILLIONAIRE     

If u want to settle your loan, just paid using the dividend u earn so far without terminating your asb loan.

Or

Terminate your asb loan and paid your debt and reapply asb loan

Or

Like bro buggie said if u can afford to pay for both just proceed like normal because u can maximize your OPM. By the end of the day, you will settled your loan plus dividend compounding.