Bank Rakyat to add 10 Ar Rahnu outlets

JOHOR BARU: Bank Rakyat will invest RM2mil to set up 10 Ar Rahnu outlets offering Islamic pawn-broking service next year to offer alternative financing to consumers.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/8/3/business/11783906&sec=business

Its southern region head Abdul Lidzam Muhamad Alias said the outlets, costing RM200,000 each, would be opened in Johor, Malacca and Negri Sembilan.

He said the bank so far had identified Pagoh, Sungai Udang and Kuala Pilah for the new outlets.
“With the new outlets, our Ar Rahnu pawn shops in the southern region will increase to 13 outlets,’’ said Abdul Lidzam.

He said this after presenting the bank’s 37,700 business tithes (zakat) to 377 students of SMK Bandar Uda Utama.

Abdul Lidzam said there were now 136 Bank Rakyat branches nationwide, of which 23 were in the southern region comprising Johor, Malacca and Negri Sembilan.

He said the majority of the bank’s Ar Rahnu customers were Malays and Indians and these ethnic groups were known to buy and keep their gold jewelleries for rainy days.

“Most of them pawn their jewellery items to us to raise money for personal loans or to start or expand their small businesses,’’ added Abdul Lidzam.

He said it was better to seek financial assistance from a legal financial institution instead of from illegal money lenders.

Abdul Lidzam said unlike conventional pawn shops where business transactions were done openly over the counter, transactions at Ar Rahnu took place at private rooms.