What is Amanah Saham Bumiputera?

Amanah Saham Bumiputera(ASB) is an attractive unit trust fund for Malaysian Bumiputeras between the ages of 18 and 60 years old.

A brief history: ASB was launched by Amanah Saham Nasional Berhad (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 loan

ASB loans are basic term loans, 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.

Where to apply for ASB loan?

Investors can walk in to:

Maybank
RHB
CIMB
Affin Bank

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

Here is an example of the margin of advance for loan amount up to RM200,000:

Up to 100% of nominal value of ASB units
Up to 105%, inclusive of the GASBRTA

For loan amount above RM200,000, at any one time:

Up to 95% of nominal value of ASB units
Up to 100%, inclusive of the GASBRTA

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

What documents are required for loan 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 unit holder 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 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)

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).

What about repayment option?

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

What about 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.