Ar-Rahnu financing is a Shariah-compliant facility that uses gold as collateral to guarantee debt obligations. The financing period and rate are determined in advance and agreed upon by both parties (Agrobank and Customer).
Shariah Concept
- Ar-Rahnu financing adopts the concept of Tawarruq involving two (2) separate sale and purchase contracts. The first involves the sale of assets by the seller (the Bank) to the buyer (the Customer) on a deferred basis. Subsequently, the buyer of the first sale transaction will sell the same asset to the third party in cash and on the spot.
- Rahn, on the other hand, refers to a mortgage contract whereby one party as the Pawnbroker ("Rahin") makes a pledge on the asset as collateral ("Marhun") to guarantee its liability or debt obligations to the other party, the Pawnbroker ("Murtahin") in the event of a failure on the part of the Pawnbroker in fulfilling the obligation.
Eligibility
- Individual
- Open to Malaysian citizen or permanent residents
- Aged from eighteen (18) to seventy (70) years old
- Not declared bankrupt
Benefits
- Fully Shariah compliance product
- Free from Riba
- No charges in profit throughout the financing period
- No additional fee charged for early clearing of the financing
- Financing up to 80%
- Financing tenure up to 36 months (3 years) with the profit rate payment in every 6 months
- Profit rate as low as *RM0.55 per month
- Fast, easy and safe
- Fully protected by Takaful
- Customers are eligible for Takaful coverage in the event of death or Total Permanent Disability (TPD)
- Free gold cleaning service for selected branches
- Over 100 branches nationwide
Product Features
| Financing Limit |
|
| Margin of Finance |
|
|
Financing Tenure |
|
Monthly Profit Rate
|
Marhun Value (Current Gold Price) |
Monthly Profit Rate with Every RM100 Marhun Value |
| RM100 - RM2,000 |
0.55% |
|
RM2,001 - RM5,000 |
0.65% |
|
RM5,001 and more |
0.80% |
Type of Collateral (Marhun)
Gold Jewellery
- 999, 950, 916, 875, 835, 750
Gold Coin and Gold Wafer
- Minimum weight from 1 gram to 50 gram (all branches)
- Minimum weight from 1 gram to 100 gram (selected branches)
- Gold grade: 916 - 999
Note:
- Accept all types of gold wafer and gold coin including gold certificate from the employer.
- All types of gold coin and gold wafer issued/distributed by Distributor Companies, State Governments and Banks in Malaysia EXCEPT companies that do not have approval/permission (as well as blacklisted by Bank Negara Malaysia (BNM)). Financial Consumer Alert List - Bank Negara Malaysia (bnm.gov.my)
How to Apply
- Complete the application form and bring your Identity Card along with gold jewellery/gold wafer/gold coin for collateral at the nearest Ar-Rahnu Agrobank counter.
Payment Method
- Profit rate payments can be made through branches, ATM, CDM, and Internet Banking.
Redemption Method
- Redemption of collateral can only be made at branches where the pledge is made with the payment of redemption in a lump sum before or during the maturity of the financing.
- Make Ar-Rahnu Financing (Tawarruq) a facility to get instant cash, solve cash flow problems and avoid illegal lending activities.
"CONVERT YOUR GOLD TO CASH"
Ar-Rahnu Product Disclosure Sheet
