What is RHB ASB Financing?
RHB ASB, short for Amanah Saham Bumiputera, is an alternative savings avenue managed by PNB for Bumiputera to save and invest.
The investment is usually long-term and aims to deliver consistent return. But, in order to invest, you need to understand the investment risk and reward.
Unlike other investment vehicles, ASB provides capital guarantee as it is fixed priced, relatively low-risk and also controlled by the regulation.
The best part about investing in ASB is that you will be paid dividend on a yearly basis based on the fund performance.
How can I invest in ASB?
You can easily participate into ASB investment by registering an account directly to ASNB agents or branches or via online portal.
This way, you need to prepare your own capital, which is usually not the case in the younger demographic who has just started working.
But that is not the end of the world. You can buy ASB units with ASB loan.
Also known as leverage investment, ASB loan such as RHB ASB Financing affords you to buy a significant amount of units for you to maximize your investment return.
How much can I borrow from RHB ASB Financing?
With RHB ASB Financing, you can enjoy a high margin of financing from RM20,000 to RM200,000 and flexible financing tenures up to 40 years, or upon reaching 65 years old, whichever is earlier; subject to entry age of 60 years old.
RHB ASB Financing also offers low and competitive financing tiered on the tenures:
|Financing Amount||Interest Rate (p.a.)|
|RM20,000 - RM60,000||BR + 1.20%|
|RM61,000 - RM100,000||BR + 1.15%|
|RM101,000 & RM200,000||BR + 1.05%|
RHB's Base Rate is standing at 2.50%.
How to pay for my ASB loan monthly repayment?
RHB requires you to set up Standing Instruction for the repayment of your ASB loan.
You must meet your monthly repayment on time, otherwise the bank will charge a late payment fee of 1% p.a. on the outstanding amount.
Mind you, the outstanding amount is compounded if you keep delaying the payment as it is calculated daily on the default amount.
What other benefits can I get from RHB ASB Financing?
Besides the opportunity of borrowing at higher margin at competitive interest rates, you also have the option to insure your ASB financing by adding 5% to your facility limit for peace of mind.
If you want to spare more cash at hand, you can apply for an Overdraft facility, subject to terms and conditions.
In doing so, you need to pledge your ASB certificate to the Overdraft facility with the following criteria:
- 95% financing for business purpose
- 67% financing for personal consumption
What are the fees and charges I should know?
There is no processing fee and Stamp Duty fee for obtaining RHB ASB Financing.
You only need to pay RM10 for the Letter of Offer and a one-time endorsement fee of RM50 per certificate.
Bear in mind that RHB ASB Financing has a 2-year lock-in period whereby for a full settlement of the financing made within the first 2 years will incur you an exit fee.
Who can apply for RHB ASB Financing and what documents to prepare?
Only Malaysian citizens aged 18 years old and above can apply for RHB ASB Financing. You are required to prepare the following documents:
- Photocopy of identity card
- Photocopy of ASB passbook - (optional)
- Latest 3 months salary slip; OR
- Latest 3 months crediting bank statement; OR
- Latest interim EPF statement (Minimum 6 months contribution)
- Letter of Employment or Confirmation from employer stating salary/allowances is mandatory if service of employment is less than 6 months.
- 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 Sdn Bhd); AND
- Latest six (6) months Personal or Company's Bank Statement; OR
- Latest Borang B / BE (validated payment receipt of payment to LHDN)
- Latest 6 months salary slips/commission statements; AND
- Latest 6 months crediting bank statements; OR
- Latest Borang BE (validated payment receipt of payment to LHDN).