PosMalaysia Launches Islamic Pawn Broking Service ArRahnu@Pos
(Kuala Lumpur, 8 August 2012)- - PosMalaysia Berhad (Pos Malaysia), Malaysia’s postal services company, announced today it has launched an Islamic pawn broking service called ArRahnu@Pos.
ArRahnu@POS is a strategic partnership between Pos Malaysia and Bank Muamalat Malaysia Berhad, (BMMB), combining the former’s network of outlets and the latter’s expertise in Ar-Rahnu. Pos Malaysia and BMMB are companies under the DRB-HICOM Group. ArRahnu@POS will be operated by Pos Ar-Rahnu Sdn. Bhd., a subsidiary of Pos Malaysia.
Ar-Rahnu is an Islamic pawn broking system whereby a valuable asset is placed as a collateral for a debt in exchange for a fixed safe-keeping fee. The collateral may be disposed in the event of a default. A form of micro credit financing, ar-Rahnu offers an alternative to bank loans, and could meet the financing requirements of petty traders, as well as small and medium businesses.
ArRahnu@POS accepts gold jewellery with a minimum purity content of not less than 75% as collateral for a six-month loan. The maturity of the loan is renewable subject to terms and conditions. Its’ safe-keeping fees are fixed between MYR 0.60 and MYR 0.80 per month for every MYR 100 value of gold (depending on the market value). It offers a maximum loan amount of MYR 100,000 per person.
“Ar-Rahnu is certainly a cost effective option especially for those with limited capital and are not eligible to apply for bank loans,” said Khalid Abdol Rahman, Pos Malaysia’, group chief executive officer.
Pos Ar-Rahnu plans to offer ArRahnu@POS at 50 outlets throughout Malaysia by its financial year end in March 2013.
Ar Rahnu Yayasan Pembangunan Ekonomi Islam Malaysia (Ar Rahnu YaPEIM), or the Malaysian Development of Islamic Economics Foundation, has disbursed a total of MYR 7.98bn to 5.2 million customers including to non-Muslims in the country since its service was introduced in 1993, according to a November report in Malaysia’s local daily Bernama. -/-