- As a bumiputera, I have a slight advantage in using my ASB cert as a collateral in order to apply for OD
- Current interest rate (BLR) is low. Today, it stands between 5.55 and 5.65 (depending on banks)
- OD is calculated on a daily rest vs. monthly rest in most conventional loans
- Ability to control cashflow (money going in and out) of the OD, at the same time manipulating the interest charge on the balance
- Lower application cost or processing fee than most conventional loans
- No fixed tenure (repayment years) to settle the outstanding balance
- I stand to gain the dividends and bonus from the ASB cert that I use for collateral
If you satisfy all of the above reasons, make sure you apply for an OD rather than a personal loan. Later, I'll post the current rates and OD facility by the main banks in Malaysia.
For those who do not know what an ASB cert is, the above is a sample of a cert converted from an ASB Book. You can convert any amount of your ASB savings to a cert at the PNB offices/branches. Only then you can use it as collateral when applying for OD.