ASB Loan introduction

asb loan

History of ASB 

AmanahSahamBumiputera(ASB) is an attractive unit trust fund for Malaysian Bumiputerasbetween the ages of 18 and 60 years old.

ASB was launched by AmanahSahamNasionalBerhad (ASNB) on 2nd January 1990 for all Bumiputeras as an alternative savings vehicle for them. This will generate long term, consistent and competitive returns for investors.

ASB was designed as a fixed price equity income fund where the price per unit of the fund is fixed at RM1.00 with no sales charges and no fees for redemption of units. Investors shall input a limit up to RM200,000.

Investors will enjoy capital gains that are retained in the ASB account which is allowed to cause the total amount in the account to exceed RM200,000. Therefore investors are free to decide the amount to invest at, and can add funds.

Dividend is distributed on a yearly basis but computed monthly based on the minimum amount of the months. Investors will also be assured capital guaranteed whereby historically, ASB has never given returns below 8.5%p.a.


ASB Financing

ASB loans is known as a basic term loan, and interest charged on ASB loans will be calculated using the reducing balance method (similar to those used by Housing Loans and Fixed Deposits). Most ASB loans today use floating interest rates, so interest rates will change according to BLR.

 ASB Loan application steps

The good news is, many banks such as Maybank, RHB, CIMB and Affin Bank offer such loans.Clients can just walk in the branch or apply online for the loan.

Banks provide a min loan amount  of RM10,000 and max loan amount up to RM400,000 per borrower, at any one time including the balance outstanding of the existing ASB loans (if any), or up to the maximum investment amount allowed by ASNB, whichever lower

Investors will have the option to take up the loan up to 25 years or up to age 60, whichever is earlier.Below is an example of the loan pricing provided by banks:

Loan below 30,000

  • BLR – 1.35 % (for 1st 3 years)
  • BLR – 1.30 % (thereafter)

Loan RM30,000& above

  • BLR – 1.65% (throughout loan tenure)
  • View the monthly instalment repayment schedule

Documents that are needed for application

To apply for ASB loan, investors must submit some basic documents for approval:

  • Application form
  • Photocopy of Identity Card
  • Photocopy of latest 3 months pay slip/other proof of income e.g : Bank account statement
  • Photocopy of ASB Passbook (for existing ASB unitholder customers)

Self-Employed / Own or Partnership Professional Practices:

  • Business Registration (Form A / B for Sole Proprietorship / Partnership); Business License (Form D), Current & Valid professional practice certificate issued by relevant competent body (for Professional Practices); OR
  • Trading License (for East Malaysia); OR
  • Local Council License; OR
  • Borang 24 and Borang 49 (for SdnBhd); AND
  • Latest six (6) months Personal or Company’s Bank Statement; OR
  • Latest Borang B / BE (validated payment receipt of payment to LHDN)

Commission Earners:

  • Latest six (6) months salary slip/commission statement; AND
  • Latest six (6) months crediting bank statements; OR
  • Latest Borang BE (validated payment receipt of payment to LHDN);

*NOTE: A Bank may require up to 6 months of income documents if the income comprise of variable components (Overtime, Allowances, Commission &etc).

Standard repayment method

For easy repayment, investors are given convenient options such as:

  • Monthly repayment option
  • Variable Standing Instruction (VSI)
  • ASB Income Distribution & Bonus Earned
  • Automatically credited into the respective ASB unit holder’s account

Managing early repayment

Depending on the bank terms for full repayment of the outstanding ASB Loan made within the first 3 years from the date of loan disbursement, an exit fee based on the difference between the ASB Board rate and the promotion/special rate is chargeable.