Adui abang, dah silap kira dah ni.

It is correct that you paid rm127,080 to the bank. But you cant use the below calculation to compare between loan and self saving.



Because, if you want to be fair then you have to use the same calculation for case 2:

You deposit 1059 per month, then you are "paying" to ASB RM127,080

Thus, "pendapatan" according to calculation is:

Jumlah pendapatan (yearly div stays in asb, assume div 7%, every month depo 1059): RM182,237
Untung bersih (money in asb after 10yrs - total pay to ASB): rm55157

Hence, the difference between case 1 and case 2:

rm69,634 - rm55,157 = rm14,477

rm1,447.7 per year profit if you use ASB loan.

P/S: Why does this happen? It happens because of compounding power. You are compounding an amount so big that you can gain profit. But from my calculation, it is not effective with small numbers.

This post has been edited by yugimudo: Jan 23 2014, 09:29 PM

As of Dec 2012, my loan also is promised with out lock in period. Maybe to attract investors?

+1 Solid calculation with neutral opinion.

This is my take on ASB loan:

It is not a must but if you are not taking the loan, you MUST save your money in ASB. The simplest mistake is you dont want to take the loan because of risk and "hukum hakam" but you let your money rot in the bank.

My preference is to save in ASB to gain modal a.k.a bullets for other investment. Paper investment will no get you far.

Mad, dont confuse between ASB loan and ASB certificate.

After 10 years of payment, you have to check how much principal left to be paid to the bank.

But your certificate, will always be 100k. <== Correct me if Im wrong as I never cash in the cert.

I have yet to terminate my loan but what do you mean by paying beyond the lock in period plz clarify.

Lock in: A period where you promise to pay bank 3% if you terminate your loan early.

ASB loan is just a "loan".

Loan has 2 type in the market: Conventional and Islamic.

If you can buy car using Islamic loan, why not for ASB? It is just a loan where you buy a certificate from ASB.

You might be confused with the "hukum" of ASB and "hukum" of loan. Loan itself by "hukum" is haram when involving interest. ASB is deemed gray area as there is some questionable element.

I dont think it is an obstacle. You need to pay yourself first before paying others. Take the loan only if you have confident enough of not taking any big loan in the coming 3 years.

Owh, I got the same case. My friend want to buy a second hand car, but all bank reject coz records too "clean".

If you never take a loan before, banks will be hesitant to give you a new loan. So how to loan if you never apply a loan but need a loan to approve for your loan?

Yup, this is also a good way. I support the use of cc. But the case I mentioned, he also got rejected by bank for his cc application, which shock me as hell as I thought applying for one is a piece of cakes.

Maybe too clean is a sin.

I think that is the case.

This is just rough estimation, you can use excel sheet and http://www.mycalculators.com to do the calculation.

Assumption:

Dividend is 7% per year.
Interest rate is 4.95% at BLR 6.6
Payment for 30 year loan.
MRTA at 1k (This one I am not sure how they calculate MRTA. As mine is around 2k+, yours might be around this)
All dividend is not used, no withdrawal or extra saving.

Loan installment = RM166 per month.
In 3 years, total paid = RM5976.
In 3 years ASB balance will be = RM36987.77
Outstanding loan balance = RM29546.49
Net Worth = RM7,441.28

Profit = NW-Paid = RM1,465.28
Profit per year = RM488.43

Let say the same method for 100k, total loan is RM102,750

Loan installment = RM549 per month.
In 3 years, total paid = RM19764.
In 3 years ASB balance will be = RM123,292.56
Outstanding loan balance = 97,932.75
Net Worth = RM25359.81

Profit = NW-Paid = RM5595.81
Profit per year = RM1865.27

Bigger loan, bigger return, bigger installment.

I still get more than I pay but next year only get 150 pocket money