A short-term collateralised borrowing, Islamic pawnbroking or Ar-Rahnu provides an alternative, Shariah-compliant pawnbroking services for borrowers. A relatively new micro credit instrument, Ar-Rahnu allows for only gold and jewellery made of gold to be pawned. Loan tenures range from 1 to 6 months where borrowers will be given the option to either repay via lump sum or by monthly instalments.
Borrowers will be given an extension of up to 3 months in the event that they cannot repay the loan. If the borrowers are still unable to repay the loan, an auction will be conducted on the pawned item(s) and any surplus less outstanding amount and charges would be returned to the borrower.
KAPB have chosen to invest in the Ar-Rahnu business under Bank Rakyat Ar-Rahnu X’Change franchise flag. Bank Rakyat hasbeen known as pioneer and market leader for Ar-Rahnusince 1993, compare to other competitors like Yapeim, Bank Islam, Agro Bank, Bank Muamalat, Pos Malaysia and Habib Jewel.
We at Ar-Rahnu X’ Change certainly understand your financial needs as well as appreciate the value of jewellery and such valuables as a sign of your efforts. Our Islamic pawn scheme promises a pawning atmosphere that is comfortable, safe and friendly for our clients and offers a high margin that fulfils your cash requirement. Let something that is valuable and took your hard work to obtain, now help you in your time of need.
- Qard (charitable loan)
- Wadi’ah Yad Dhamanah (savings with security on pawned items)
- Ujrah (Fee)
- Interest-free, eliminates element of riba’
- Processing fee exempted
- Ujrah rate calculated daily
- High value pawned margin
- The pawned gold is kept safe and Takaful coverage
- Malaysian citizens, permanent resident and non-citizens
- Aged 18 years and above
- Ar Rahnu RM 10,000.00 minimum a day up to maximum cumulative amount of RM 50,000.00
- Ar Rahnu RM 10,001.00 minimum a day up to maximum cumulative amount of RM 100,000.00
- 65% from marhun value (new customer)
- 70% from marhun value (existing customer)
- Ar Rahnu 6 months maximum with an extension period
- Az Zahab 3 years maximum for repayment in instalments