Pos Malaysia Launches Islamic Pawnshop Service

Published On August 8, 2012 |

BANGI – Pos Malaysia Berhad today launched an Islamic pawnshop service under the brand, Ar-Rahnu@POS which complies with syariah requirements for customers to exchange jewellery for cash.

Information, Communications and Culture Deputy Minister, Datuk Maglin Dennis D’Cruz said the service would benefit the public, especially low-income earners and petty traders.

“The public will be more confident in such a service as Pos Malaysia is an agency under the ministry and the government is indirectly involved in ensuring the security of the items kept here,” he told reporters after launching the service at the Pos Malaysia branch in Bandar Baru Bangi, here.

D’Cruz said the two branches offering the service here and Kuala Terengganu had given out loans amounting to RM600,000 since July. He said every transaction would be attended to promptly by trained personnel, and when extended to all 700 Pos Malaysia branches nationwide, the service would benefit those staying in the rural and remote areas.

Pos Malaysia Group chief executive officer Datuk Khalid Abdol Rahman said the service was another effort to make the post offices into one-stop centres.

He said the service was capable of eradicating poverty by providing financing for petty traders and enabling borrowings without interest.

“The market for this syariah-based service is up to RM2 billion. We feel the service will be hugely beneficial to the public and we target ArRahnu@POS to become a core business in Malaysia,” he said.

Khalid said 50 ArRahnu@POS branches were targeted to be set up nationwide for the financial year ending March next year, and 50 more in the next financial year.

ArRahnu@POS is strategic cooperation between Pos Malaysia (80 per cent equity) and Muamalat Bank (20 per cent). Both are under the DRB-Hicom Group.

Handled by Pos ArRahnu Sdn Bhd, a subsidiary of Pos Malaysia, ArRahnu@POS accepts jewellery with not less than 75 per cent gold, with a keeping fee of 60-80 sen a month for every RM100 value of gold, depending on the market value.

The maximum loan is RM100,000 for a customer with a maturity period of six months which can be extended subject to certain terms and conditions. – BERNAMA