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Bank Islam To Tap Potential Markets For Pawnbroking Services

News From : DagangHalal.com (16 Jun 2010)

KOTA BAHARU, June 16 (Bernama) — Bank Islam Malaysia Bhd plans to tap potential markets like Terengganu, Kedah, Perlis, Pahang and Kuala Lumpur for the Islamic pawnbroking services or Ar-Rahnu, managing director Datuk Seri Zukri Samat said Wednesday.

“The demand for Ar-Rahnu services is there with potential to grow. We plan to tap both the Malay and non-Malay segments. We want to give customers a choice,” he told reporters after the opening of Bank Islam’s first branch here.

The branch was officiated by Prime Minister Datuk Seri Najib Tun Razak. Also present were International Trade and Industry Minister Datuk Seri Mustapa Mohamed, Tourism Minister Datuk Seri Ng Yen Yen and Deputy Finance Minister Datuk Dr Awang Adek Hussin.

Zukri said in order to offer the Islamic pawnbroking services, Bank Islam had entered into a strategic partnership with Farihan Corporation Sdn Bhd (FCSB), an Islamic pawnbroking service provider.

Bank Islam holds an 80 per cent stake in FCSB with the remaining 20 per cent stake held by FCSB director Aziz Nawi and his family, he said, adding that FCSB was currently operating a pawnbroking branch in Pasir Puteh, Kelantan.

Zukri said Bank Islam planned to open another three new branches in the second half of the year.

He also said that the bank will educate public on the advantanges of the Ar-Rahnu services via active promotion and advertising activities.

Earlier in his speech, Zukri said Bank Islam had decided to offer the pawnbroking services through the Ar-Rahnu chain of outlets, separated from the bank branches.

He said this would enable Bank Islam to play an important role in expanding access to its Syariah-based financing, particularly to micro industries and small enterprises.

“We are aware of the huge potential for the services as applications for micro credit are increasing,” he added.

According to him, the entrepreneurship spirt is still strong among Malaysians and what they need is financing sources that are convenient, fast and offering reasonable rates.

On the pawnbroking services, Zukri said on average, customers could get up to 60 per cent financing from the value of gold pawned.

He said all transactions would be recorded clearly and comprehensively together with takaful coverage to ensure the security of pawned items.

If a customer is unable to repay the financing taken, then the gold will be auctioned. The proceeds from the auction will be returned to the customer after deducting the amount owed and the storage fee for the gold.

— BERNAMA

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