EXPERIENCING ARRAHNU

AR-RAHNU AGRO BANK   

I shall write today my experience going to ArRahnu Agro Bank, Klang.

What is ArRahnu?

An Islamic pawn broking scheme based on Syariah principles of Al-Qard, Al-Wadiah and Al-Ujrah which provides a source of immediate financing to assist individuals in overcoming cash-flow needs, offering investment opportunities as well preventing from illegal/unlicensed financing activities.

Agro Bank only accepts gold jewelleries to be ArRahn.

Nowadays to 'rahn' your gold jewelleries, you have to come early to the bank and get your number.  Once ArRahnu Agro Bank finishes their allocated numbers, the officers will not entertain anymore people that day. You have to come on other days.

Once your number is called upon, you will be served by a Bank Officer. You have to fill up three types of documents as to ensure that you are the owner of the jewelleries and other terms and conditions. Your jewelleries will be tested to ensure that they are genuine and pure.  They will also be weighed to determine the actual weight.

The bank publishes the daily prices for the gold.

Say I bring 100g jewellery gold 916. The published price at Arahnu is RM183.70. Thus the jewellery has ‘nilai marhum’  amounting to RM18,370.00.
Maximum loan that you can take out is 70%.  Thus for your 100g gold bar, you can get cash of RM12,859.00 (at 70%)
The safekeeping fee 'upah simpan' is RM0.75 for every RM100 gold jewellery kept. Thus one month, the safekeeping fee is RM18,370/RM100 x RM0.75 = RM137.80
Maximum period you can keep for the first time is 6 months. Thus the storage fee for the 6 months’ period is RM826.65.

Details of ArRahnu Facility AGRO Bank is in the link http://www.agrobank.com.my/ar-rahnu

SAFEKEEPING FEE

Enjoy low administration fee as follows:

Margin Pinjaman	Upah Simpan bagi setiap RM100.00 Nilai Marhun/Bulan
50%	RM0.50
60%	RM0.60
70%	RM0.75

PAWN DURATION

6 + 3 + 2 months

The first duration is for 6 months, can be extended for another 3 months and lastly for another 2 months.


AR-RAHNU TIME ZONE SDN BHD (HABIB JEWELS)

I was in Time Zone last Saturday, for fact finding.

Ar-Rahnu Time Zone Sdn Bhd is located besides Habib Jewels outlet Ampang Point.

Here, we can place Public Gold gold bar and dinar. You have to produce a receipt.

Price for gold bar 999 last Saturday is RM149/g. If you bring in 50g gold bar, the value or 'nilai marhun' is 50g x RM149/g = RM7450. 75% of the value can be arRahn to you = RM5,587.00. 

The ArRahn amount of RM5,587 is paid in cash, on the spot.

The maximum Ar Rahnu amount is RM100,000. However, Ar-Rahnu Time Zone limit RM10,000 per transaction.

If you bring in 250g gold bar, the 'nilai marhun' is 250g x RM149/g = RM37,250. 75% is RM27,937. ArRahnu can only give you only RM10,000 though.

How to avoid the situation?

1. Bring in gold bars/dinar/jewelleries worth RM10,000/0.75 = RM13,000, which is equivalent to 80g gold bar 999 (or 90g jewelleries/dinar 916) for each transaction. 
2. Bring your purchase receipt as well
3. Do not bring gold bar 999 of > 90g for each transaction 

SAFEKEEPING FEE

Ar-Rahnu Time Zone's Safekeeping fee is 1% per month.

If you purchased a lot of gold bar, this can be an alternative to you should you require cash.