Ar Rahnu, Islamic Pawn Broking (Tawarruq)

Ar Rahnu, Islamic Pawn Broking (Tawarruq)

Islamic Pawn Broking is an Islamic Pawn Broking scheme based on the Shariah concept of Tawarruq (commodity Murabahah) and Rahn (Pawn broking).

Applicant Eligibility

• Open to all Malaysian citizens and Permanent Residents, aged 18 and above
• Not declared a bankrupt

Benefits

• Fully-Shariah compliant product
• Free from Riba’ (usury) and Gharar (uncertainty)
• Fixed Profit Rate on the financing amount
• No early redemption charges
• High margin of advance
• Fast, easy and secure
• Gold cleaning service
• Improve customer experience by providing convenient online Ar Rahnu revaluation transaction without present at BMMB premise. Please refer below pdf attachment for further information on Ar-Rahnu Online Revaluation.
• All branches can accept the gold bullion for pawning without opening the seal.

Financing Margin

Up to 80% margin of financing from gold value

Financing Limit

Maximum financing amount of RM1,000,000 (RM500,000 for gold jewellery, gold coin, dinar gold bar, as well as another RM500,000 for physical Muamalat Gold-i (Perth Mint) Gold Bar and Muamalat Gold-i account).

Acceptable Gold Collaterals

• Gold/jewellery (without precious stone) of standards 750, 835, 875, 916, 950 and 999. Click Here for the list of branches.
• Accept all types of gold bars/bars/coins/ wafers of standards 916, 950 and 999 from all goldsmiths, institutions, authorized distributors except those blacklisted by Bank Negara Malaysia (BNM), “Consumer Alert”, “Fraud Alert” and “SC Security Alert”.
• Muamalat Gold-i account (minimum allowable transaction is 10 grams and with multiple of every 10 grams i.e. 10 grams, 20 grams, 30 grams).

Please click the following links for further details:

• CONSUMER ALERT & UPDATES
• LIST OF UNAUTHORISED WEBSITES / INVESTMENT PRODUCTS / COMPANIES / INDIVIDUALS

Pawn Duration (Tenure of Financing)

18 months,  subject to profit servicing to be paid every 6 months.

Profit Rate

18 months,  subject to 11.25% p.a. on the margin of financing or 0.9375% monthly.

Comparison On The Calculation Of Profit Rate as Opposed To Safekeeping Fee

• Example:
  a) Gold value: RM1,000
  b) Loan/Financing : RM800 (however customer request for RM250)
  c) Profit Rate Islamic Pawn Broking (Tawarruq): 11.25% p.a. d) Interest Rate Conventional Pawn Broking: 2% per month