I dont know how they guy from the other forum calculate, but im pretty sure its wrong. ASB loan is like a housing loan right? It is reducing balance and not like a car loan/hire purchase.
Please correct me if im wrong. I remembered there is a blog somewhere he did the same calculation as what mooze quoted, after a few months he corrected his calculation and say is better to get a ASB loan.
That aside, consider this:
RM100,000 ASB loan with current BLR rate for 20 years.
RM100,000 x 8% (conservative) for the 1st year = RM8000
Payment for the year = RM620 (today's rate) x12 = RM7440
Ofcourse u only get extra RM560
But use the RM8000 from the 1st year to pay for Year-2
That means your year 2 is free. Do the same for next year and keep on doing that. After 20 years, with just RM7440 you get RM100,000 free.
Summary:
1. First year pay RM7440,
2. Use RM8000 from prev year's dividend to pay for next year.
3. Repeat step 2 for the next 19 years.
ASB loan, worth to get it???