Loan for ASB investment
I guessed I never really wrote about this at all. Amanah Saham Bumiputera, or ASB, is one unit trust that’s created specifically for Bumiputera people in Malaysia. I guessed ASB itself need no introduction as most of the non-Malay friends that I knew heard about ASB before. With relatively high incentive percentage rate, it makes most investors drool at it.
But that’s not the main point for the discussion. I’ll be touching more on ASB loans offered by some banks such as Maybank and Bumiputera Commerce Bank. A lot of people I know were put off by having the idea of taking loans to save money. But I have my points.
Point 1 - Dividend payout
First of the points that people always raise when I talked about this topic is, why take loans when you can save your own money into ASB and don’t have to pay the bank a single cent? Yes, i agree with that point that you can save money by your own effort and put it in the ASB account every month. But are we getting the maximum effect?
ASB calculates the dividend by month of investment, i.e if you put your money in January that year, you’d have 12 months of dividend when they calculate the dividend for you, but you’ll have only 3 months of dividend if you started saving the money in October the same year. For the sake of illustrations, let me give you an example. Every month, starting from last month (January), i keep RM700/month until the end of the year - i’ll have RM8400 in my ASB account at the end of the year. Let’s say ASB declared 10% dividend for this year, so you’ll get RM840 in dividend.
WRONG! Remember when i said ASB will give you the dividend pro-ratedly? So you’ll get something like RM455 only for that year (do the calculation yourself - if you are stuck, let me know i’ll help you out).
Compared to taking the loan, i’m going to use this example. Let’s say I’m taking a RM100,000 loan for maximum of 20 years, and i have to pay the installment of, say, RM750/month. The same dividend payout as the example above, and I’ll have RM10,000 of dividend in my account. Yes, I may already be paying RM9,000 as installment, but I still have RM1,000 balance. And if I didn’t take the dividend out and let it continue for the next years to come, I’ll be filling up my ASB account (max RM300,000) in 7-8 years time.
Point 2 - Consistency in saving
OK, I’m still not convinced, you may say. I can keep money better than you do, so I don’t need the ASB loan, you continued. Bravo, if you can have the discipline to save money. But can we? I know I can’t consistently save money without being forced to - i have just too many evils around me that will do anything to entice my money away. With loan, I’ll have something to commit on, and I’ll have to find money to pay the installment no matter how tight my cashflow was that month. And don’t tell me that you don’t have the craving to upgrade to a bigger car, splurge a “little” on some fine dining when you have that extra cash.
I have to be forced. And so far, I’m loving it as I can managed to get my house down payment money from the dividends I got from the ASB loan 
Point 3 - Lower loan interest
Yes, it’s still based on BLR. But it’s way cheaper than what i took initially - 4.5% for 1st year, BLR - 0.5% for 2nd year, BLR + 0.4% thereafter was what I was on earlier. As updated by my Maybank advisor (chewah!), the loan interest now is like this - BLR - 0.3% for 1st 3 years, BLR - 0.5% thereafter, and RM42 (only!) for processing fee. I paid like > RM600++ for processing when I took mine like 3 yrs back.
It didn’t take me long to end my earlier loan to sign up for this. And oh, for settlement of that ASB loan (since i took for 20 yrs but opt out earlier), I’ll get whatever money that I have already paid minus the interest. And I got the insurance premium back as well.
I don’t have more points, as by point 3, i was already convinced that i needed help (externally) to save money. Eventhough it may meant I have to pay extra to the bank. I still save whatever extra money I have to ASB (although not much yet lah).
By the way, if you think I’m getting something out of this topic, think again. If you are interested, then good for you and please approach the nearest Maybank branch for more info. By the way also, only Bumiputeras need apply I’ll leave the part why I can invest in ASB for another day’s discussion.
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I Love what your write brother.. You are among the Bumi’s that have those awareness..
To support your statement, I’ll add-on rules & my own experience as an examples how the loan can help.. opss befire I forget.. Point no 4
The Loan are insured.. anything happen to you.. your ‘waris’ will inherit all amount in CASH without ‘banyak songeh’ unlike Insurance Policy..
No post mortem no hidden clause. It is your saving.. insured pay-out your waris get it all.
ASB re-act as the best life insurance for your family.
OK Let’s See the Rules:
1. Dont Calculate how much bank is earning..it is bank’s money of course they have to make some money. U get ‘0′ if keep on thinking about that. You focus on what u earn, end up a win-win situation.
2. Borrow with MAXIMUM Loan Tenure so that your monthly payment will be MINIMUM. Example now bank is offering 20 years.. take 20 years.
3. Chose bank that offering Consistent monthly payment regardless BLR is up or down. Alternatively bank will play at loan tenure. eg 20yrs may become 21 yrs if BLR going up
4. Dont take too many at one go. The purpose is to help the low & moderate income to have long term saving. Take such as RM10k for 20 years, BUT REPEAT EVERY YEAR.
So Year 1 = I take LOAN 1 at RM10k for 20yrs and monthly payment is about RM74 permth. I serve payment for 12 month and get Dividen say RM800 at the end of the year( amount based of past 10yr record) So I ll use ALL RM 800 to pay upfront YEAR 2 which can cover 11 months advance. Last month Dec YEAR 2 , top up abit laa.. RM74 only. SO LOAN 1 can be independent if I repeat payment until Year 20.
In Year 2 = take another RM10k for 20 yrs. Same amount pay RM74 permonth to cover LOAN 2 for 12 mths.. remember LOAN 1 already adv payout using dividen.. so no problem to have 2 Loans..still pay RM74/mth. End of the year..take all Dividen to payout Advance Loan 1 & Loan 2.
Year 3 = Repeat..take another RM10k for 20yrs.
At the end of 10 years..
1. I have 10 of RM10k policy = RM 100,000 by saving consistently only RM74/mth.. even a cleaner worker can afford this.
2. My oldest policy already 10 years.. if I despreate I can Let IT GO.. Bank will settle the loan and return to me the balance. Guess how much.. it will worth about RM 4500. How much I pay for that? RM74 x 12 mths ++ RM50 registration fee only. I STILL HAVE 9 POLICY RUNNING.
3. After 20 year.. every year I will pick RM10k.
So..U still want to TALK.. U GET TALK ONLY.. i HAVE DONE THIS FOR 10 YEARS.. AND I AM HAPPY NOW.. HOW MUCH DO U SAVE FOR LAST 10 YEARS?
MAYBE SOME MONEY BURNED AT SWISS CASH.. GOOD LUCK.
amir - thanks for dropping by. that’s why i would never understand the mentality of some people. they would rather not take loans for something that’s sure, but risk it in things like swisscash. in the end, who has the last laugh?
ashotiwoth..
i need some guidance regarding this. i am a fresh graduate and currently im in a dilemme of buying a new car, but as per parents’ suggestions, i decided to take asb, as you know, youngsters these days tend to spend it all on anything they could get their hands on.
so here’s the thing, lets say, my monthly salary minus epf (no socso as i dont have 12 months payslip yet) is about rm2500-2600. what’s the maximum loan amount that i can obtain. at most, i think i can spare rm1000/month for the monthly payment. thanks in advance.
by the way the email address that i’ve submitted is not valid. as I’m not fond of spam.
pls reply here
dude - check with the bank that you intend to take the loan from. From my understanding, the biggest loan amount you can take is Rm100k, although you can take 2 Rm100k loans at one go (max investment possible for ASB is 200k).
since you have just started working (still young), you can take advantage of the longest possible loan tenure - 20 years if i’m not mistaken.
With Rm100k loan, be prepared to fork out about RM700-800 (depending on bank’s interest rate) per month for installment. Since that’s within your budget, i would suggest that you go with RM100k loan first. Keep for a few years, and evaluate if you can afford additional one, or just continue with the current one.
I’m taking 100k loan myself from Maybank, and paying like Rm750/month in installment. Planning to increase but still weighing the possibilities.
if you currently have a transport to work, just postpone your purchase for one year. Since you budgetted like Rm1000/month for the monthly payment, keep the remaining balance (after paying the installment) in ASB for the whole year. By end of this year, you would have some money in addition to your dividend, and i believed that could very well be your downpayment
By the way, if you intending to go with Maybank, go this month so that you can start paying your installment from Mac onwards (as per my Maybank advisor advise). They need 1-2 months to process, so the earlier you go, the more dividend you can get.
Purely my 2 cents worth - you can choose not to listen to me
Write to me at ashotiwoth AT gmail DOT com if you want further clarification. And don’t worry - i don’t charge consultation fee… hehehe.
By the way, RHB is also offering considerably good offer on ASB loan.
Check out –> http://www.rhbbank.com.my/personal/services/loan/asb_loan.shtm
[…] i’ve known the few ways you can make money investing in ASB - hard-saving your own money, or take loan to invest in ASB. But using overdraft, or OD in short, to invest in ASB - now that’s something new that […]
Hey, I just took a loan of RM100k for 20 years.
Including insurance, I’ll be required to be RM687 for the first three years and RM798 (-1.3 BLR) for the remaining 17 years. And the CIMB officer rest assured me that all that is fixed repayment amount for that 20 years.
Is she bluffing? we all know that after the 1-3 years promotion, usually after that the interest rate of the loan will be based on BLR right?
I am eager to start this investment but I quite scared of the stability of the BLR in years to come after the promotion rate is done! what do you think? Should I continue?
Marina - sorry for not getting back you earlier. The bank officer is probably right about the fixed repayment amount - but check the repayment period. For Maybank, the amount to pay is fixed, but if the BLR increased, my repayment amount is still same, but the repayment period will be extended a bit. Somehow, you’ll still have to cover that extra amount of extra money.
aliza - yeah - i found that both RHB & Maybank now fight very hard to get customers on this. Only if all the eligible investors are that eager….
saya ada satu pertanyaan.sebelum ni saya pernah bekerja dan saya sudah buat asb loan bank 20k untuk 20 tahun dan tiap bulan saya bayar RM 152 pada bank. dan sekarang ni saya sambung belajar. dan setiap loan ptptn saya, saya asingkan untuk untuk bayar pinjaman asb loan saya. so, soalan saya, boley ke saya nak tambah asb loan saya lagi?? dan bank mana yang tawarkan bunga yang paling minima??
apa yang saya nak cakap, selagi BN memerintah, slagi itulah ASB aka kukuh. Cuba bayangkan kalau parti pembangkang yang memerintah? Saya pasti DAP akan lebih berkuasa dan nasib ASB akan jadi pertanyan. Saya memang tidak suka BN, tapi saya tak nak BN hilang kuasa. Kuasa bumiputra akan hancur bila pembangkang memerintah.
Hi..
Just to share bout the interest rate of ASB Loan..
One of the bank (Agent) offered much better rate..
First yr = 5.00% / 4.75% / 4.5% (according to the package 1, 2, 3)
Subsequent yrs = BLR - 1.25%
If u want to know which bank, please contact me at ateng_fa@yahoo.com
hi there,
i jst took asb loan at maybank paying rm353 per month for 20years. my plan is, wanna pay RM353 per month for the 1st year only. Following year will be paid by the dividend given by asb and jst top up whtever different. Then will buy a house.Question: will the bank approve my mortgage loan amounting rm450 to rm550 repayment monthly as my bring home salary only rm1770? i understand tht mortgage repayment should be one third of our bring home salary.will they consider my rm50k asb loan as loan commitment or saving (coz i hv the dividend to pay for it). ur kind answers are most appreciated.
frns
frans - my understanding is that the ASB loan will be taken as loan commitment. Why? I took a home loan from Maybank and ASB loan is counted as one of the loan commitment (alongside car loan) as well. The approval for your home loan may depend on how you will service the loan, as well as the bank that you’ll take the loan from as well.
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
adymfi,
i plan nak resign n become a housewife. mcm u kata, setelah kira2 benefits amik ASB loan ni, kita hanya perlu modal utk tahun pertama sahaja. selepas tu Dividen akan bayar kita punya loan mthly payment. Hasilnya, kita dpt beratus ribu pada hari tua + insurance. mcm ni, saya nak pegi apply skang juga tanpa lengah lagi. lepas setahun letak capital banyak skit saya akan resign,duk umah jaga baby. tapi boleh ke insurance cover kalau kita unemployed?
Tadi saya baru tanya MBB officer tu saya boleh apply RM500+ monthly utk loan RM80K for 20 years. OKla.. sebab saya pon dah ada RM25K dlm ASB skang. Cuma saya risau skit tentang BLR rate tu. Betul ke ashotiwoth kita akan bayar fixed monthly payment n tambahkan loan tenure bila BLR increased?
hi akai,
Awak telah mengambil tindakan bijak dengan menabung dalam ASB.
Pada hemat saya, awak cuba selesaikan dulu loan tu sebelum awak berhenti kerja. Ye lah mana tau kut2 tak lepas pulak.Unless kalau awak guna nama husband untuk jadi penjamin.
Setahu saya, insuran hanya cover pada kemalangan yang menyebabkan kecacatan kekal atau kematian sahaja. Selain daripada itu ia tak cover. Mungkin puan boleh refer pada Maybank.
Bertindak segera kerana tindakan yang kita ambil itu memang nampak tidak popular di mata orang. Tapi, kalau kita tak buat apa2 langsung..? Fikir-fikirkan..
hye to mr.adymfi do you have any YM or email address. i want to discuss with you bout ASB. anyway you can add my YM at weezer679@yahoo.com
Hye protogyl,
my email address is adymfi@yahoo.com. Please to meet you. To discuss anything bout ASB, pls feel free to mail me in that email.Happy investing.
regards,
adymfi