Borrow to Invest : ASB Loan Part 1
In Malaysia, undoubtedly Amanah Saham Bumiputera or ASB is the hottest product amongst the Bumiputeras. Refer to my previous ASB post. There are a number of strategies out there in investing in ASB. One of it is taking up ASB loan. So, is it worth it? In this post, I’ll be analysing ASB loan method. The analysis is a bit mathematical, so, bear with me. Please take note that this analysis is based on a number of assumptions. Also, please remember that as I am not an expert, this analysis is of my own and is subject to error. Consult your licensed financial adviser. Alright, that being out of the way, let’s get on with the analysis.
Assumptions:
- Loan amount: $50,000.00
- Loan tenure: 10 years or 120 months
- Interest rate: 6.25% per annum or 0.5208% per month
- ASB rate: 7% per annum or 0.5833% per month
- Inflation is disregarded
- Time Value of Money Formulas are used
- All dividend incomes are not withdrawn at all
- Interests and ASB dividends are compounded monthly
The Situation:
Ahmad Ping Pong is a Malaysian Bumiputera. He works as a circus freak earning $2000 per month. He plans to own his own circus empire in 10 years time. Thus, he needs to invest his money to realise that dream. Due to him being a conservative investor, he chose ASB as his investment vehicle. So, he sat down and did some calculations using formulas he obtained from nadlique.com :). He came up with two ideas:
Scenario 1 (ASB Loan Method)
He takes up a $50,000.00 ASB loan and invests it in his ASB account for 10 years. This is without withdrawing the dividend income at all and let it compound. He will service his monthly repayments with his salary. Here are his calculations:
Formula:
PV = loan amount
FV= amount in the future
A = monthly repayments
r = interest rate
n = time period in months
Interest rate of 0.5208% per month is used to calculate repayments.
A = Monthly Repayments = $561.39
His total payments
$561.39 X 120 months = $67,366.80
Total interests paid
$67,366.80 - $50,000 (principal) = $17,366.80.
Remember that the ASB loan was invested right away in his ASB account. Thus after 10 years, the balance will be:
ASB Rate of 0.5833% per month is used
FV = $100,479.07
Balance minus costs (interests):
$100,479.07 - $17,366.80 = $83,112.27
The balance at the end of 10 years is $100,479.07.
Scenario 2 (Monthly Deposits Method)
Ahmad Ping Pong is scared of loans. He thought that loans are works of the devil. So he decided to just deposit a portion of his salary every month instead. He will deposit $561.39 (same as the repayment figure in scenario 1) every single month for 10 years.
Formula:
ASB Rate of 0.5833% per month is used
FV = $97,165.94
So, the balance after 10 years is $97,165.94
As illustrated above, scenario 1 (with ASB loan) results in a higher balance than scenario 2. However, this is based on the assumptions given (i.e. interest rate, ASB rate and etc.). The interest rate was obtained from RHB Bank’s website. If the interest rate was higher, results would have been different. Due to the fact that the difference between scenario 1’s balance and scenario 2’s balance is not that much, higher interest costs would have made scenario 2’s method more viable. Remember, analysis would yield different results with different inputs.
If I have made an error in any way, please feel free to correct me by adding comments at the comment box below.
P.S. The above analysis is not a recommendation of either methods. Individuals need to take into consideration their own circumstances and consult their licensed financial advisers.
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Filed under Unit Trusts (ASB, Public Mutual and others) |47 Responses to “Borrow to Invest : ASB Loan Part 1”
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Hi Nadlique..
You are amazing…at the age of 21 you managed to illustrate and talk about wealth creation in a very clear way..Congrats!
Well..first time here to read your blog accidentally:)!
Good stuffs ha…topic cover ranging from investment, online business, financial etc…very good effort! its all involve in money..hehe
By the way…why not you apply Google Adsense to your webpage here…i can see a potential here in your blog…atleast you get another possible extra income if you do serious considering on it…right?
Cheers 4 YOU!
Regards,
Khairil Redzham
Unit Trust Advisor
CIMB Wealth Advisors Berhad
Thanks a lot Khairil. You got directed to my blog from Emily Wee’s blog right? ;)
I hope you didn’t get offended by my comments over there. Just thought of sharing my views, that’s all. Kalau kecil hati, minta maaf ye :D
I did register for Google Adsense earlier but my account got suspended. I’m now scouting for other options. I’m also considering having somebody else’s Adsense account to serve their ads here and share the payout with me.
Anyway, thanks for visiting my blog. Please feel free to comment on my posts. Would love to exchange ideas with a well-qualified unit trust advisor! :)
erkkk…there is no wrong n right in giving opinion Nadlique..so no hard feeling…
Emily blog? maybe…:)
Considering on using somebody else’s Adsense acc??
I do have an account..but has not been active quit so long…if you do interested then i will check about my adsense acc status with Google…may i know about your website traffic statistic…average per month (if u dont mind)….adsense program is much2 more competitive now compare to past few years…but atleast it is kind of potential income generation while you are sleeping..
am i right smart girl??
:)
Haha. With regards to the Adsense account, I actually already have somebody else to work with. Sorry! Thanks though :)
jus like text book dear
:)
Textbook? It’s that bad huh? Hehe :)
lol.loans are the works of devil. nice calculation there by the way . Do u mind if if u explain how situation 2 really works?
Hi there Zim :)
Sorry for the late response.
Situation 2 simply means that the chap doesn’t take any loans at all. So now, the same amount of money, which is $561.39, is deposited into his ASB account instead of paying to the bank. This is just to compare which is better. Are we better off taking the loan or is it better putting the same amount of money each amount into the ASB account.
Let me know if you ave any other specific questions.
Cheers buddy!
Hi Nadlique,
Can you come out with calculation, where the investor will pay the 1st year loan by their pocket money and 2nd year onwards by using the dividend + bonus declared by PNB.
All the dividend + bonus received will be compounded and only the amound needed to pay the loan for that dedicated month withraw.
I already calculated it and it shows more i got.
And the cost only the 1st year loan payment.
Thank you.
Hi there Zul,
I’ll try to do that soon.
Nevermind, i just got the answer from ASB itself thru email.
Untuk makluman tuan, pengagihan pendapatan untuk unit amanah harga berubah-ubah seperti ASN, ASN 2, ASN 3 dan ASG adalah dikira berdasarkan baki unit pegangan di akhir tahun kewangan dan bukannya purata tahunan.
Manakala, bagi ASB ianya adalah dikira berdasarkan formula di bawah :-
Pengagihan Pendapatan
Pengiraan pengagihan pendapatan adalah berdasarkan kepada baki terendah pada setiap bulan untuk jangkamasa 12 bulan ataupun setahun. Untuk mendapat pengagihan pendapatan penuh pada bulan tersebut, pelaburan tambahan mestilah dilakukan pada 01 haribulan pada bulan tersebut dan dikekalkan sehingga hujung bulan. Sekiranya pelaburan tambahan dilakukan selepas tarikh tersebut, perolehan pengagihan pendapatan hanya akan dikira untuk bulan ke hadapannya.
Contoh pengiraan pengagihan pendapatan bagi tahun berakhir 2007:-
Jumlah *BMB dari bulan Januari 2007 hingga Disember 2007 x KADAR
12 Bulan
* BMB adalah Baki Minimum Bulanan dan merujuk kepada baki yang terendah di antara 1hb hingga hujung bulan bagi setiap bulan
* Baki minimum bagi setiap bulan akan ditentukan terlebih dahulu mulai Januari, 2007 sehingga Disember, 2007 (12 bulan).
* Baki-baki minimum tersebut akan dicampurkan kesemuanya dan dibahagi dengan 12 (jumlah bulan dalam setahun) bagi mendapatkan purata baki minimum
tahunan.
* Purata baki minimum tahunan yang diperolehi akan didarabkan dengan kadar pengagihan pendapatan yang diisytiharkan.
Bonus
Pengiraan bonus pula adalah berdasarkan kepada purata baki terendah bulanan untuk jangkamasa 10 tahun ataupun 120 bulan terdahulu.
Contoh pengiraan bonus bagi tahun berakhir 2007 :-
Jumlah *BMB dari bulan Januari 1998 hingga Disember 2007 X KADAR
120 Bulan
* BMB adalah Baki Minimun Bulanan dan merujuk kepada baki yang terendah di antara 1hb hingga hujung bulan bagi setiap bulan
* Baki minimum bulanan selama 10 tahun bermula dari Januari 1998 hingga Disember 2007 (120 bulan) dicampurkan kesemuanya dan dibahagikan dengan
120 bagi mendapatkan purata baki minimum untuk tempoh 10 tahun.
* Purata baki minimum 10 tahun yang diperolehi didarabkan dengan kadar bonus yang diisytiharkan.
Nice formula, but not include a risk, wat happen if lion ‘kriok’ Mr He, but Mr he not died, need to settle a loan right? better used mr Ahmad ways, safe and gurantee, and want more, the financial expert says don’t not borrow to invest, the liar financial only says borrow money to invest?…
Yeah, I believe his beneficiaries need to settle the loan.
Of course, at the end of the day, having the discipline to save your own money to invest is the way to go.
I almost fell into the trap once.. But my husband did the calculation and since then we never think about getting loan to save.. Aren’t that strange enough? You borrow money so that you can save money? Huhu..
Siapa yang untung? Itu bank juga!
To me, getting a loan with an interest rate of say 7% and then invest it in an instrument that could potentially yield 8% is really not a smart thing to do. Margin of safety langsung tak dak. Interest naik sikit, merana.
However, taking a loan with an interest of 7% but investing the money in an instrument that could potentially gives 20% return is a different matter.
Betullah, at the end of the day, baik jadi bank. Senang buat duit :D
Salam nadlique..
wow..i’m so impressed with ur site nih. u r so young, yet u dah fikir bout financial freedom! Cayalah :>
i just came back from lunch and decided to search the net on anything that has to do with ‘lending from ASW to invest in ASB’. a friend of mine was telling meabout it, lantas terus i’m interested giler :> So i surf, and here I am, reading ur site.
honestly before this i have never thought of investing seriously. it’s just lately that i started to realise i should do something if i want to live a financial-stress-free life later :>
Congratulations n thank you for sharing all this with everyone. I plan to visit this site of urs from time to time. looking forward for any new tips and cool ideas on financial management :>
salam………saye nk tnye.unit dlm asb tu ape sbnrnyer?
@Aya
Salaam,
Terima kasih Aya. Masih banyak lagi yg saya perlu belajar dan perbaiki :)
Participate ye dlm diskusi-diskusi di blog ni :)
@zumira
Salaam zumira.
Untuk ASB, setiap seringgit ialah 1 unit. Jadi, setiap satu ringgit yg kita masukkan dalam akaun ASB, seolah-olah kita sedang membeli saham ASB. Cuma untuk konsep amanah saham, ianya dipanggil unit.
Jadi, kalau masukkan RM100 ke dlm ASB, kita membeli 100 unit ASB.
Well nadlique,
nice idea ur throwing out here. By the way, I have to agree 100% on the 2nd method as I’m the living exampleon how the 1st method is totally fail & troubling me!
Right now, am trying to terminate my loan & guess what? Lots & lots of protocols that I have to obey just to claim back what I’ve invested over the years. Yet time is running & my money is wasted down to the drain.
I’m totally RUGI over the last 5years as the dividend decreasing each & every year while my interest remains high. It seems like now I’m donating my money to the bank. Get any alternative to suggest dear nad?
Well nadlique,
nice idea ur throwing out here. By the way, I have to agree 100% on the 2nd method as I’m the living example on how the 1st method is totally fail & troubling me!
Right now, am trying to terminate my loan & guess what? Lots & lots of protocols that I have to obey just to claim back what I’ve been invested over the years. Yet time is running & my money is wasted down to the drain.
I’m totally RUGI over the last 5years as the dividend decreasing each & every year while my interest remains high. It seems like now I’m donating my money to the bank. Do u have any alternative to suggest dear nad?
Hi Dr. D,
I guess that’s part and parcel of the investment world.
So, the bank that loaned you the money refused to let you get out of the loan or something?
Honestly, if it was me, I wouldn’t borrow money at a given rate to only earn a few percent extra on top of the interest rate. If the central bank hikes up the interest rate, then I’ll be in trouble. For example, borrowing money at 6% to invest in ASB that gives 8%.
However, borrowing money at 6% (just an arbitrary rate) to be invested in something that could potentially make me 20% (again, an arbitrary rate), then, that’s something that I would consider.
Just remember that the higher the potential returns, the higher the risks. In fact, the risk of losing money is also present.
So, at the end of the day, tepuk dada tanya selera.
salam…
my friend asked me about the asb loan cz im an actuarial science student.i’ve learn a little bit about investment loan n etc.b4 this he has invest 10k for 5 years in asb loan.then he want to make 50k loan for 10 years.
i try to calculate for him the amount that he should pay monthly.but in that time i’ve no calculator.luckily i found your blog.thanks to you.
Salam….
Luckily i found your blog.thanks to u.Actualy, my friend ask me about this asb loan.he want to make 50k asb loan for 10 years.just like your example.he asked me while we are online.i’ve no calculator to calculate the amount that he should pay monthly.luckily this blog safe me from his question.:)
thanks…it just look like abook but not all people can understand this calculation.”we” who are in the field of this metter can easily said like that huh..
erm bagi untung kat bank???kalo simpan duit bawah bantal sampai bile pun tak kaya,right…?
Hi all,
Pasal loan ASB ni kan, sepatutnya tak timbul pasal berapa banyak duit yang kita ’sedekahkan’ kat bank. Itu adalah lumrah kalau kita pinjam duit. Yang kita nak sekarang ni, kita dapatkan kapital yang tinggi untuk mendapatkan pulangan yang tinggi start dari first year. Adalah amat berbaloi kalau kita pinjam dan kita tak ambik selama 20 tahun. Kira kita buat pelaburan untuk hari tua lah… Dan anda akan kagum dengan pulangan yang anda dapat daripada jumlah yang anda bayar kat bank, Saya buat loan untuk memenuhi kuota 200 0000, dan target saya adalah buku bank saya akan tunjukkan 7 ANGKA untuk 20 tahun mendatang. Masa tu, dapat 80 000 setahun (kalau 8% return). Tu adalah pendapatan saya semasa saya bekerja sekarang ni. Takdelah susahkan anak2 nanti.
Betul tu. Kalau nak buat kekayaan, kita tak patut fikir sgt pasal berapa duit bank korek dari kita. Yg penting, kita pandai allocate duit tu dan pilih instrumen yg sesuai utk dapatkan return yg baik.
Katakan saya pinjam RM10 dari bank. Dgn RM10 tu saya dapat buat lagi RM10. Lepas tu saya kena bayar bank RM10 dan tambah lagi RM5 untuk interest. Tinggallah RM5 utk saya. Sesetengah org mungkin kata, buat apa lah kita sedekah duit kat bank. Kalau kita fikir balik, baik ’sedekah’ RM5 tu kepada bank dan saya juga dapat RM5, daripada duduk diam tak buat apa-apa dan tak dapat duit langsung.
betul kata sally. Kalau simpan duit bawah bantal, bila nak kaya.
Ya, mungkin kalau buat pinjaman utk melabur, kita mungkin akan rugi. Tapi, kena ingat. Itulah namanya risiko.
Nak bagi pendapat lagi..tidak mengape la kalo sedekah sikit kat bank.aper yang kita buat along the investment period??just dump the money and do nothing.the financial manager is the one who manage and diversify our risk.so tak pe la bagi fee kat orang yang dah bepenat lelah diversifying the risk.
Hi…
Thanks nadlique for the calculations…
But I’m curious y u talk all his good thing bout ASB yet u, urself didn’t invest in ASB?
Y aaa?
Sorry if I ‘menyibuk’, but u must have good reason right?
Don’t u want 2 share?
ASB ialah satu jenis investment yang lembab pada pendapat saya..yang di lihat 7-8% setahun, kalau sentiasa melebehi paras 15%..than you need to be serious…
Make more research for better ways to double up ur income faster, let me ask you..which vehicle do u want to ride?? a car or a rocket?
Lu pikir la sendiri..
@ateng
I do have some money in my ASB account, but my account is currently being dominated by my mum.
Also, for me, with limited amount of funds but with a longer investment time horizon, I invest my money in other places that offer me better returns.
Don’t get me wrong though, ASB is a great product. In fact, in the future after entering the workforce, I do plan to utilise my ASB account.
@Jumper
Memang la ASB satu investment yg lembab. Tapi kena ingat, bukan semua org ada aggressive risk profile. Bukan semua org sanggup tgk duit dia org jatuh 20% dalam masa 6 bulan. Sesetengah org lebih rela dapat 8% setahun dan dapat tidur lena.
Kalau nak kejar returns yg lagi tinggi, memang ada byk lagi investment yg lain. Kalau nak yg teramat tinggi, go for leveraged products. Tapi bersedialah utk tgk duit kita fluctuate. Bersedialah tgk kita untung minggu ni tapi hilang beberapa ribu pada minggu depan.
Utk option naik car atau rocket, here’s a food for thought. Kalau car accident, masih ada peluang untuk survive. Kalau rocket accident, terus disintegrate. Mati terus.
Lu pikir la sendiri.
in the end of the day, it is how u disern ur way through, either u are agressive risk taker or safety first, both will succeed if discipline applied and consistent and on top of that u must be knowing what u re doing!!!!!
True alex domino.
Having said that, I myself am involved in a number of aggressive investment measures, with the purpose of souping up my returns.
However, at the same time, I think it is also fine for certain individuals to opt for less-risky products, as long as they are comfortable. The key is to actually INVEST and not just safeguard the money under a pillow.
salam, hi…
i started invest in ASB since i was in secondary school. Tapi tak consistent due to financial problem. Few years back, somebody proposes this ASB loan. I’m still considering all aspects before making any decision.. Just want to find out if it involves interest (charge by the bank) then it is considered as riba’ which is haram in Islam, right?
I’m not too sure whether there are ASB loans that are syariah-compliant. As far as I’m aware of, most of them involves riba’.
assalamualikum nadlique….wow!!u r great..this is my 1st time reading ur blog n u amazed me..wow again!!hehehe
would u mind taching me other kinds of investment with their own good/bad)…i really2 wanna be an investor but then my background and knowledge not really helpful..hopefully u can help me..thanx to u n may Allah bless people like u!!
p/s..my email: ibnubattutah@yahoo.com
Saya baru nak apply ASB Loan RM 20K.20 years. ok ker ek? tp bila sya culculat balik cam best jerk diveden n bonus yng kita dapat..
@wannaBgudDoc
Waalaikumussalam Doc. Thanks for the compliments.
Ada banyak lagi artikel-artikel di blog ni pasal investment yg lain. Banyak yg tak detail sgt, tapi boleh lah sebagai permulaan.
Mari tengok sitemap saya http://www.nadlique.com/index.php/site-map/
@IMA
Memang best kira dividen dgn bonus tuh. Hehe.
Hi Nadlique,
I have 2 questions. Could you tell me.. if I have RM30,000 and put that in my ASB account, how much would that add up to 10 years later?
My second question is..how is the interest calculated? I still don’t get if let’s say in the 1st year you accumulate let’s say 10% - which would be RM3,000 on the RM30000, will you accumulate 10% interest on RM30,000 or will you accumulate 10% on RM33,000 for the second year and so on.
Thanks for your help.. Great blog, by the way!!
The interest is calculated on a compounded basis based on the average balance.
With your example, for the second year, it’ll be calculated as 10% on RM33,000.
aku dah amik loan untuk ASB from MAYBANK,nasihat aku kat kawan2 sume,amik je la ASB loan,walaupon untung sikit dari kita simpan bulan2 but still untung,pikir banyak2 smpai 6 bulan mmg buang masa…….ASB satu pelaburan yg less risk
Salam sejahtera!Pada pandangan peribadi saya lah, pinjaman(loan) ASB memang amat berbaloi dan paling menguntungkan.Senang cerita, lumayan lah. Sebab apa saya katakan demikian? Ok, katakan kita mengambil pinjaman sebanyak 200K. Untuk tahun pertama sahaja, saya ulang sekali lagi, untuk tahun pertama sahaja kita mengeluarkan modal untuk membayar pinjaman tersebut.
Ramai yang cakap oh.. bank jadi lintah darat ambil untung mudah daripada kita yang buat loan ni. Dah tu, kita ada duit 200k tunai dalam tangan sekarang untuk letak dalam ASB? Saya tanye lagi sekali, ada ke duit sebanyak 200K cash???.Orang nak berniaga pun kena ada modal. Bank pun nak berniaga jugak. Dia bagi kita modal, mestilah dia nak kembali modal + untung. Kita pon kalau berniaga kita nak untung. Logik ke kita beli milo setin kat pemborong harga contoh 7 ringgit, kita jual kat pengguna lain dengan harga 7 ringgit jugak? Di mana rasionalnya? Jadi kita sebagai golongan yang tak berduit ni kenalah pinjam duit kat bank untuk melabur.Tak gitu??:tt2:
Ok, berbalik semula pada perbincangan tadi. Kakanlah saya ambil loan sebanyak 200K dengan bank dan pihak bank akan mengenakan bayaran bulanan pinjaman ASB saya 1500K sebulan, termasuk insuran. Dan saya hanya membayar sejumlah 18K setahun sahaja. Sekiranya PNB mengumumkan dividen tahun tersebut sebanyak 10%, dalam akaun saya akan dikreditkan 20K. Saya hanya mengambil 18K daripada amount tersebut untuk membayar bayaran pinjaman tersebut. Begitulah seterusnya sehingga pinjaman habis. (Disyorkan ambil pinjaman 20 tahun untuk kurangkan bayaran). Jadi.. siapa yang tolong bayarkan pinjaman saya? PNB lah bukan saya yang bayar. Saya cuma modalkan 18K sahaja. Diulang sekali lagi.. Saya cuma modalkan 18K sahaja.. Modal 18K lps 20 tahun dapat 200K.. tak nak ke bang??? Bila ada yang kata kalau saya simpan bulan-bulan sebanyak 1500 lagi bagus. Saya kata pulak, siapa kata saya tak boleh simpan 1500 bulan-bulan. Saya bukan sahaja masih boleh simpan 1500 sebulan tapi saya juga bayar extra 18k setahun untuk modal 200K.Buktinya.. saya simpan 1500 kat asb, + saya bayarkan lagi 18K sebulan untuk loan(Modal 200k saya tak usik sebab dah cover dengan duit dividen yang dibayar pada bank).Cuba kira sendiri berapa banyak saya boleh simpan??([B]1,077,124.88 [/B]selepas 20 tahun, tapi itu kalau kita simpan 1500 sebulanlah… banyak tu beb)
Sekiranya dividen tahun tersebut 9%, saya akan dapat 18K atau jika kurang daripada itu pun, saya cuma perlu tambah sedikit sahaja.(So far dividen ASB tak pernah kurang daripada 7 persen). Jadi, saya tak nampak di mana ruginya saya ambil loan ASB tersebut. Saya bukan bayar guna simpanan duit saya. Saya bayar guna duit dividen daripada PNB. Lagipun duit tu pun bukan saya nak guna sekarang, saya nak guna bila dah bersara nanti. Katalah selepas 20 tahun nanti saya dah ada 200k dari simpanan ASB dan 200k daripada simpanan KWSP. Saya akan keluarkan 200k daripada KWSP dan saya akan simpan dalam ASB. Wow.. bayangkan saya ada 400K dalam asb untuk sara saya sepanjang hayat bila dah bersara kelak. Saya tak perlukan duit anak-anak saya.(kalau saya meninggal pon ada insuran yang akan bayarkan 200k tu, jadi anak dan isteri dapat lah jugak daripada tak dapat apa-apa langsung)
Terus terang saya katakan yang saya memang tak ada disiplin untuk pergi ke bank tiap-tiap bulan untuk simpan duit. Saya malas nak potong bulan-bulan sebab saya tau saya juga tak ada disiplin untuk tak ambil duit tunai dalam akaun bila dah banyak.(Kucing kalau nampak ikan depan mata, kalau tak makan pon dia akan cium). Oleh itu saya rela ambil loan sebab saya tau saya tak boleh ambil duit tu (dah tukar dalam bentuk sijil).Dan yang lagi penting dan utama… adalah terlebih elok saya ambil loan daripada saya tak buat apa-apa. Kalau tak mampu nak bayar terminate je, bukan susah pon. Esok lusa kalau dah ada duit buatlah loan semula. Kalau takat cakap bergegar-degar macam tin kosong pon tak guna jugak.
p/s: Perjalanan beribu-ribu kilometer bermula dengan langkah pertama
To all investors in ASB,
The maximum amount investment permitted per account is only RM200,000 in ASB, i.e. your own investment amount. However, your dividend is allowed to flow back in your ASB account, although you have reached an investment limit of RM200,000.
My recommendation is to use both loan and salary deduction. I am using my fully paid ASB’s certificate to obtain an OD facility with a bank so that I can use this OD facility for my platform to reduce my cost of borrowing in the long run.
I found your blog while I was googling for ASB stuffs. Great stuffs you got here; really useful!
I’m planning to take ASB loan/investment from RHB; haven’t really decided on the amount yet. Is there any diffence between the banks?
Salam,saye nk tau boleh ke cancel loan asb lepas dapat dividen.sebenarnye saye baru start bayar loan asb bulan 9 yang lepas,tapi ad masalah kewangan la.so saye nak cancel bulan 1 tahun depan.Tapi,bile saye tanye staff maybank,mereka kate nt kene bayar lagi banyak.Lepas setahun baru boleh cancel.Kalau boleh saye nak cancel secept yang mungkin.Tapi,bape banyak yang pihak maybank akan ambil ye.Harap encik dapat menjawab soalan saye ini.
hi nadlique..impressed on your calculations..well done!!!accidently browsed in asb site and found ur blog,mind if I throw in some opinions aite..totally agree wt pijul regards on the loan term.It is true that experts says not to borrow to save but we juz need to bear in mind that the profitable interest every mth/year is compounding on a larger sum of $$$.So if you are planning to have a long term plan, this method could work at its best.Unless if you do have that huge amount of money it would be a different story.However still this method works only on long term goals,should it be short term,minus the interest charges on loans,you’ll barely get the profits.
Juz an opinion though,it is still subject to individuals perspective :)
Cheers!!!
Hello guys,
Sorry to interrupt…
I allready had an explanation from my friend about profit earn from ASB through dividen,at the same time he also touched about ASB certificate (Sijil ASB) in order to open overdraft account.Same method as Mano Waikato describe earlier.Hopefully u can help me to understand what is ASB certificate n how to obtain this cert.thaxx
Hi Nadlique,
I took out a Maybank ASB loan for RM30,000 in 2004.. Can you tell me, would Maybank allow payment of the loan in full?
Thanks..