Putradinar | Malaysia

This Blog Is About Gold | Emas and Ways To Own Gold Bar and Gold Dinar.

Jul 16, 2009

PawnBroking Your Gold in Malaysia

Posted by PutraDinar

Pawnbroking is a useful service during financial distress and very helpful for small budget gold trader.Just bring your valuable item, normally jewelery and you will get cash.There are two ways you can pawn your gold in Malaysia. Whether going to conventional pawnbroking or Islamic pawnbroking(Ar-Rahnu). Both of it can give you financial aid immediately but what make it differ from each other?

Islamic Pawnbroking(Ar-Rahnu)

  • Example: Bank Rakyat ~ AgroBank ~ The Malaysian Islamic Economic Development Foundation (YPEIM)

  • Loan Financing: 65% to 70% of the gold value(marhum)

  • Loan Period: 6 month but there are extension period if can't redeem on time

  • Pawn Product: gold wafer and jewelery

  • Safekeeping Fees: RM0.65 to RM0.75 for every RM100.00 of gold value per month

  • Eligibility: Malaysian citizens above 18 years, permanent residents and not bankrupt

Conventional Pawnbroking

  • Example: just go through the yellow pages and you find a lot :)

  • Loan Financing: normally your gold will be under-valued below 50% of its actual

  • Loan Period: 6 month with extension period not less than 3 month

  • Pawn Product: almost anything that valuable

  • Interest Rate: 2% of the loan permonth(24% peryear)

  • Eligibility: not sure

# I will go with Islamic Pawnbroking because these Islamic financial institutions don’t make profit from interest, but from the safe-keeping fees. You may get a better rate from banks compared to conventional pawn shop.

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