the loan only suitable for those who dont have discipline to save money

If u cant discipline yourself, i think its better to tell ur bank to deduct a certain percentage of ur income directly to your savings account.  So every month, there will be a standing instruction to automatically deduct say 10% of ur income directly to ASB.  I think its better than letting the banks swallow your money through ASB loan.

Personally though, I look forward to put more money into my investment account myself..Because u get the feeling like you're paying yourself and putting more money for urself.. everytime i put more money in my asb i feel like i am getting richer.  I dont feel like I am depriving myself..but that is just my way of thinking.

No one is asking you invest 200k cash lumpsump.  . Just imagine since you are going to pay Maybank RM 1,100 for 25 years, what if instead you pay the bank but pay to ASB instead? What will the results be like?

Use back your assumption of 7% dividend, and pay RM 1,100 a month.

(a) if you pay RM 1,100 per month to ASB and reinvest the dividend, after 25 years you will get = RM 893,329.41

(b) if you pay RM 1,100 of the dividend is used to pay Maybank, after 25 years you will get =RM 220,000.00

Which one you prefer? You still pay the same amount at RM 1,100 per month either to the bank or ASB only.  Don't get conned by bank easily. 

just sign off asb loan from RHB yesterday. applied last week and approved few days later.

interest 6.6%, total asb 50k + insurance RM1069(total insurance for 25years) with loan period max to 25years. monthly need to pay rm300.
why so long? because i want take low monthly , rm300X12month=rm3600 i pay per year,  let say i got dividen for 8% plus bonus so its around rm4000 per year.
so basically i paying rm3600 for 1st year, by next year, i will use dividen to pay the monthly loan and its gonna be free money.

Getting an ASB loan will always be factored in by banks when getting a personal loan.

I believe in starting early, since this is also a win-win situation. I think you are working now and should have no problem passing through the criteria for ASB loan. I applied for rm200k ASB loan during my 2nd year in university and still lepas.

All the best.

 

the hardest part is to pay the monthly loan for first year. 2nd year you're on autopilot. 

After 1 year, u can actually use the dividend to pay off the installment for the next year.
If you are willing to wait 25 years to gain RM200k from RM14400(1200 x 12 months) investment, y not?
My advice is to apply the loan in November to get the full annual dividend.

Yes because by the time next dividend comes it will be less than one year for you. If you would like to invest in ASB better do it ASAP because any delay will cost you money.

Solsekuin44,

You do not have to wait till this November. If you really do, your dividend will be given at the end of 2014 which is a year later. The dividend will be pro-rated if you invest today.
It a fixed fund units and remain same, the early you invest, the more faster compounding effect will take it place.

U r so lucky, still young and can maintain 1k mthly for your saving.

Depends on your planning how.

Me prefer saving but now im late oledi

here my saving..to motivate me.

http://brunialamira.blogspot.com/

as i said..im so late now..but still prefer saving for asb. before i oledi make the lasb, but terminate due need more cash on hand.

Thought you already decided not to take asb loan...

Answer to your question is no. Use own money is better.

actually you are neither right or wrong

there's a risk of increased BLR, or reduced dividend, or a combination of both

if all variables remain static, you earn approximately 1 - 2% more with ASB loan than using your own  money

depends if the 1-2% is worth the risk to that individual

Thanks to you guys, my friend got the 200k loan..
He is planning to service consistent every year until it reaches RM300-400k. From there he can constant re-draw about 25-27k each year, RM15k to cover ASB year & rest cover house loan. He told me is hard but later years senang.

20 Tahun atau sehingga Umur 60 tahun, (yang mana lebih Awal)

Accumulated by year-9 almost can reach 400k, but at the time you already fork out own money for almost 130k.

Ok, thanks for the replies
I'm now saving rm1500 monthly.

Calculated using the ASB calculator, with the dividends rate set at 7.75%, if consistently deposit rm1500 monthly for 10yrs,
without taking out a cent of the dividends, will get rm232k.

i follow 

but just beginner lor..sob sob

my saving http://brunialamira.blogspot.com/

Good luck and all the best, its not easy to save rm1500 every month consistently for 10 years, soon you will have family, kids, parents getting older, things gets more expensive, more commitment, hospitalize and medical bills etc etc... Dicipline and financial planning is the key...

*cont. here for more appropriate place to discuss regarding loan;
Hi,

Thanks for the respond. May I know if you also planning (or already applied) the same loan as I been discussing about on the another thread?

Yes, CONSISTENCY is the key.

Without loan, do we have option to auto deduct from our account, OR, we have to manually bank in to the account?