say you are a bumi and work with the goverment, and let's say he got 200k in ASB investment account. My friend who work as a government servant told me the goverment loan interest is very low like 2.5 max 3%, so if he borrow 200k to buy a house, he just need to take money from the interest earn @ 8-9% in ASB to repay the loan...literally they are not paying any money to buy the house, still got extra money.

Any source regarding this matter? As I know government servant with salary as low as RM 1,500 can apply and GET up to RM 100k loan. I wonder how long they take to repay back the loan. The lowest isnt it 5% from aggro bank?

If i not mistaken. the lowest interest should be 4%-5% for any government loan. won't be 2.5%

i think it's housing loan. only for house.

I wonder where you learn mathematics.

The example u raised, basically meant that the person's investment yield higher return compared to his housing loan's interest rate.

READ, "INTEREST", what about the loan amount itself? No need to pay? Repay interest enough d?

*Btw, the interest rate for Govt Servant housing loan is 4%.

ofcourse need to pay the initial loan. but how much? will it be more than the interest earned from asb, if you calculate how much need to pay a year vs amount interest earn in a year.

That would depend on how long is the repayment period.

Btw, the ASB return not that high (8-9%). Average return is 7%+.

Anyhow, becos of the 'jacked up' return of ASB, ASN, ASW (the funds didn't really make that much profit actually). U get a lot of ppl (bumi especially), who put all their savings into the mentioned funds, then take loan (car, house, personal) to the max. Thinking that since the return from the Govt related funds are higher compared to loan interest rates, they are actually 'making money'.

Well, I'm not commenting whether this is right or wrong. But putting all the eggs into 1 basket is never a safe bet. Moreover on some funds with unbelievable statistics.

Govt Servant loan
Basic Salary Max Loan(RM)
1. 3500 & above 360,000
2. 3000 - 3499 300,000
3. 2500 - 2999 264,000
4. 2000 - 2499 240,000
5. 1500 - 1999 192,000
6. 1200 - 1499 156,000
7. 1000 - 1199 120,000
8. 800 - 999 96,000
9. 600 - 799 72,000
10. 599 & below 48,000

The interest rate is 4%. Dont know whether the ASN/ASB can cover the interest as the interest for house loan is different from ASN/ASB deposit (but I think ok lah with 8-9%)

agree that gov loan got low interest rate...very worth and if you're working for gov...this is the only super benefit i can see which is really worth it...
don't think...just buy!

not all government servants like to take government loan.. because the risk of late disbursement is very high.. end up the owner have to pay for the penalty.

well i would say that 4% isnt that fantastic considering that now loans are going at BLR - 2.X .... It used to be good in the days when the BLR were super high ...

yeah, not much of difference between govt loan and bank loan nowaday.

their interest is very low..i don;'t know how much.
but wat i know is they can use the low interest benefit once in a life only.

My wife is a gov servant. 4% interest. Still worth it, considering BLR is rumoured to increased

4% lah, the interest never change like BLR
Not once a life, but can get govt loan twice, with condition that the first loan must be fully settled/paid before the second loan is approved

Why do we let a racist mofo like u participate in this forum. Why do u have to specifically target Bumis who work with goverment? Is there not any non-Bumi who could earn interest more than u mentioned above working with gov too?

If you work in government and starting salary is less than 2,000 what chances do u have to save up to 200k. I am working in an MNC earning close to RM10k and still haven't reach 100k savings level. I doubt any civil servants below age of 30 will have that kind of money.

Stop being a racist mofo will u.

the loan is applicable to all government servant, no matter u are a bumi or not. race is not an issue here.

the interest rate for government loan is 4% but the max loan repayment is up to 25 years only, even if u are still at age of 20.

personally i don't think she is hinting any sort of racism here, she's merely using bumiputras as example to point out and link the interest rates between the gov loan and ASB investment profit in percentage.

i sure hope you're not offended that easily, not everytime a person utters the words bumi, malay, indian or chinese are racists.

tying to be diplomatic here.

lol, I specifically mentioning bumi working in government because 1) only bumi can invest in ASB and 2)government servant can enjoy low interest goverment loan. why do i mention ASB, because it's one of the most stable, risk free investment.

which in my ROUGH calculation, (If it's right) IF they have 200k in ASB which historically showing interest earning of 9-10% pa, countering their loan of 200k with 4% interest pa to buy a house, it will work out they LITERALLY don't need to fork out money to pay for the loan aka the house.

your earning 10k per month, can't even save 100k savings level, judging from the way you talk and seeing things, it doesn't surprise me. say you are earning 10k, thats 120k a year, take away 100k for savings, you left with 20k to spend a year which work out 1.6k to spend every month, which is more than enough to survive, and you cant do it, what kind of a spoilt brat you are. there are lots of way to get that 200k, it's not that much of amount in today's value, it can be sponsorship from parents or join fund with husband/wife/family members.

who's the mofo again?

Dont forget they can get another 5-7% discount on houses