Is it better to take ASB loan compared to invest in public mutual equity fund?
what is the rough percentage of return if i leverage with rm20k?

May i know which bank has better offer for ASB financing?

Hi, can anybody tell me whether BLR increase, the Dividend on ASB oso will increase?

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Added on October 27, 2011, 6:10 pmAnybody knows which bank has the best offer rate currently? I just asked CIMB bank just nw, but i nt sure which bank has the best offer.. hope somebody cna gimme advice. thansk

This post has been edited by bursalchemy: Oct 27 2011, 06:10 PM

If i am not wrong, u can just loan let say rm100k, then u pay the instalment for the first year only which is rm657/mth and loan it for 20yrs tenure. Then, u can goyang kaki and wait ur dividned for tht year do the job, and u no need to commit any fund into it anymore. thats mean u only have to contribute rm7,884. After 20 yrs, u can get rm100k.

Is it correct?

How long could u save rm100k? Leveraging on otheer people money is the fastest way to make money. Thats why entrepuneur can make money through loan borrowing..

Nothing difference.

When u dun have capital and knowledge, u use energy/body to earn money.

When u got knowledge but no capital, u use brain to make money.

When u have certain capital, u use money to make money.

The most clever step is use other's people money to make money.

That is why i am so interested in banking/insurance company, they cna use the 80% population's money to help them generate more money. Thats why alot of holding company likes to diversify their investment into insurance company, u can have a fixed float of money to do more profitable investment.

I think this is mutual benefit right?

Ya. the dividend is inside ur ASB account.. if u wan to repay the loan, u have to transfer it to the bank account so that bank can direct debit the instalment frm ur bank account

BLR currently is 6.60 %, do u think is it still financially worthwhile to takeup the ASB loan?

Besides, some of the loan officer told me when BLR increase, signify the economy is improving and the ASB dividend will increase accordingly. is it correct?

thanks.

I planned to take CIMB bank loan coz it offered 4.65% for the first 2 yrs. besides, i got cimb bank accoutn, so it is more convenient to direct debit frm the same bank account, right? it is quite attractive, but the cons is its max tenure is only 20yrs. thats mean i cant have bigger cash flow each year. maybe i need partly finance the loan from my pocket.

This post has been edited by bursalchemy: Nov 2 2011, 11:31 PM

let me do simple calculation for u.
Assume the BLR fixed at 6.60% throughout the tenure.
The dividend is 7% throughout the tenure (this is the worst scenario.

Based on the table provided by CIMB bank for ASB loan.
Assume i take rm100k loan and loan it for 20 years.

monthly instalment rm657
total payment made after 20 yrs
=(657 x 12mth x 20yrs)
=157,680

thats mean total interest paid after 20 yrs is 57,680

Although the loan is based on reducing balance method,
let me assume it is using compound interest method,

use compound interest formula,
We find the rate of interest using compound interest formula,

P(1+r)^n = Principal +interest
100,000 (1+r)^20=157,680

use ur calculator,
r= 2.3031%

in case of worst scenario,
ur ASB dividend at least generate 7% without include bonus.

u borrow at 2.3031% but u get a return of 7% at least per annum.
Ask urself, is it worth?
the figures tell it all.

This is just a simple arbitrage. I will not say it is a free money, because u gain higher return by facing higher risk. but the risk is near to zero. if the BLR increase to 7%, using weighted average for 20 yrs, u still in financially better position, becaouse the 2 interest gap is quite big. if PNB collapse, i think malaysia will face bankruptcy too. Then the ringgit u deposited inside the bank also will worth nothing at the end. better u buy gold if u dont have confident with the prospect of malaysia.

rm657x12mths= rm7,884 only. i dun understand what 16k are u talking.

LOL! is there any problem, it is for future savings.
after 20 yrs, u can get rm100k, does it worth?

Like. some mediocre mind just dont understand the effect of compound interest. It is a double edge sword. Time is our great friend if we know how to use compound interest by our side.

Nvm.. diferent people has different risk appetite. u happy then is ok. Actually there is no real answer right or wrong. After 20 yrs see who accumulate more wealth.

u can take different loan package from different bank. there is no limit of how many certs are u taking. but u will be charged by the initial fees for each certificate. such as stamp duty and initial bank charges

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Added on November 15, 2011, 11:50 pmWe are not fighting. just speak out own opinion. my strategy now is take rm50k loan and open a new bank account, so that the bank can direct debit my account each month and i wont mix up with my day to day account which is use to finance my daily expenses.

when i got extra cash flow, i will transfer the fund to the account use to finance asb loan. if it still not enough, i will take out some of the dividned frm asb as a last resort.

This post has been edited by bursalchemy: Nov 15 2011, 11:50 PM

which bank loan are u taking? Maybe u can use online banking to check how much u owing

what are the benefit taking ASB islamic loan?

[quote=OneBuck,Dec 22 2011, 10:57 AM]
[quotebursalchemy,Dec 21 2011, 10:44 PM]
what are the benefit taking ASB islamic loan?

[/quote]

For me shariah compliance.

[/quote]


thats mean muslim cannot take conventional loan? must take islamic bank loan for shariah complaince?

May i know how much can i get if i cancel the loan before maturity? will i incur losses compared to self savings?