Suppose you are a Bumiputera and are looking for an avenue to invest in where you are sure to get good returns at low risks, you are sure to land up on an ASB investment. This investment comes with an upper limit of RM 200,000 and can be invested in only by those who are considered Bumiputeras. It has a reputation of being a very lucrative place to invest in and offers attractive returns since it invests in equity markets. Now, even though you have identified the investment, you are still going to need money to invest in it and that is where the RHB ASB loan comes into the picture. This loan features high loan amounts along with easy repayment schemes.
Features of the RHB ASB loan
Some of the features that you can expect to see in the RHB loan of ASB investments are:
The maximum amount the bank will offer to lend is up to RM 2 million for ASW and for ASB investments the maximum amount is RM 200,000.
The minimum amount that you can borrow is RM 50,000 if you go in for a term loan.
If you go in for the overdraft facility, the minimum amount is RM 10,000.
The bank offers to finance up to 100% of the amount required for the investment.
The bank can also extend this loan as a personal loan and offers 95% of the value of the ASB certificates that can be used as collateral.
The bank will also offer an insurance to cover the loan, which is optional and funded by the bank itself.
The tenure of this loan can range from 25 years till such time as the borrower turns 65 years old.
The term and the loan amount are also subject to the entry age and can be limited to 95% of the requirement in case the borrower is over 60 years old.
The bank allows loans to be repaid before the maturity period, however if the loan is repaid before the first two years are over, there will be an exit fee that will be charged.
The loan can be paid back via standing instructions.
RHB ASB Loan Interest rates
The bank charges an interest rates on the loans that it approves. This interest rate can depend on the type of loan and also the amount that is borrowed.
For term loans between RM 50,000 and RM 80,000 the interest rate is BR (Base Rate)+1.15%
For term loans of RM 80,001 and above, the interest rates are 1.10% above the base rate.
For overdraft against ASB certificates the interest rates are base rate + 1.85%
It is also important to note that these interest rates can keep changing from time to time, so it is best to confirm them with the bank before you apply for the loan.
Eligibility criteria and documents required
The eligibility for this loan depends on the borrower meeting certain eligibility criteria determined by the bank. There are also a certain set of documents that will be require to complete the application process. These are:
You will need a copy of your identity card which can be an NRIC or a passport.
You will also need a copy of your ASB passbook.
The latest pay slip or credit card statement will be required for salaried individuals.
Salaried individuals will also have to provide a letter from their employers confirming the income. This is mandatory if the applicant has been with the company for less than 6 months.
Copies of documents certifying the business will be needed in the case of self-employed individual.
They will also have to submit theirs or the company’s bank statements for the last 6 months.
For those earning a commission, the last 6 months commission statements will be needed.
They will also need to submit a statement for the last 6 months of their credit banking.
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