Another business that the group ventures in is Islamic Pawn broking. It was incorporated in July 2010.
Islamic Pawn broking or Ar-Rahnu is a form of short-term collateralized borrowing alternative and is Shariah compliant. It is a new micro credit instrument capitalizing only on gold and jewellery made of gold to be pawned.
The loan tenures ranging from 1 to 6 months where borrowers will be given the option to either repay via lump sum of by monthly instalments.
Borrowers will be given an extension of up to 3 months in the event that they cannot repay their loan. If a borrower fails to repay the loan in the stipulated period, the gold submitted as collateral will be auctioned off to the cover the loan outstanding and any surplus be refunded to the borrower.