QUOTE(polemic @ Sep 12 2011, 01:53 PM)
Hi firstly sorry if im asking a silly question..
i have taken ASB loan from cimb (65k for 20 years).
the monthly payment is RM 440 per month.
My plan is to use the dividend which i will get next year to pay for the loan monthly payment.
my question is, if i pay the bank using all the dividend money, for example, in January , does it mean that i will not going to have to pay, say, 10 months of monthly payment?
thanks in advance..
Loan Taken: RM65,000.00i have taken ASB loan from cimb (65k for 20 years).
the monthly payment is RM 440 per month.
My plan is to use the dividend which i will get next year to pay for the loan monthly payment.
my question is, if i pay the bank using all the dividend money, for example, in January , does it mean that i will not going to have to pay, say, 10 months of monthly payment?
thanks in advance..
Monthly: RM 440.00
The amount you would have to pay for a year of montly payment is: RM 5,280.00
Let's take for example, we get 7% from ASB for each year.
The dividend you would get for the first year is, RM 4,550.00, you still owe bank another RM 730.00, and this would answer your question that the dividend will cover 10 month of your monthly payment.
I suggest that you take up more years and more RM on the loan....
for example a loan of RM200,000.00 of 25 years tenure, at RM1164 per month (maybank)
The dividend you would get for the first year is, RM 14,000.00, you owe bank @ RM 13,968.00 per year. On the second year, if you decided to use up all your dividend to pay for the monthly payment, you still have RM32.00 extra in the asb (along with the RM200,000.00 from the loan that does not show up on book)
hope that helps. This is just a rough calculation. Kindly approach an expert on the matter before making any transaction.