QUOTE(neobita @ Sep 13 2011, 12:28 PM)
Loan Taken: RM65,000.00
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.
Thanks for the reply bro.
for now, i only can afford to pay the current installment of RM440. Maybe i will take another ASB loan in the future, but not now.
1 more question to add, is it possible to pay the bank straight away 10 month installment? So that i didn't need to pay the installment for 10 months in return?
If its possible, this mean i will have extra RM440 per month for 10 months next year