Short answer
- Ar Rahnu is a gold-backed loan run under Shariah principles. Its cost is a safekeeping fee (ujrah), not interest.
- A licensed pawn shop charges monthly interest and is regulated under the Pawnbrokers Act 1972.
- Both value your gold and lend you a percentage of that value.
- Choose by how the cost is worked out, what items are accepted, and which branch is nearest to you.
Ar Rahnu is a cash loan secured on gold jewellery that operates under Shariah principles. You hand over gold as collateral and receive cash. Instead of interest, you pay a safekeeping fee, and your gold is returned when the loan is settled.
How is Ar Rahnu different from a licensed pawn shop?
The main difference is how the cost is worked out.
- Ar Rahnu charges a safekeeping fee (ujrah) for storing your gold, under Shariah principles.
- A licensed pawn shop charges monthly interest on the loan amount, and operates under the Pawnbrokers Act 1972, regulated by the Ministry of Housing and Local Government (KPKT).
With both, your gold is valued at the current price and the loan is a percentage of that value. The percentage, rate and period differ between providers, so ask before you agree.
How does Ar Rahnu work?
- Valuation. Your gold is weighed and its purity tested at the counter.
- Offer. You are offered a financing amount based on that value. You can accept or decline it.
- Agreement. If you agree, you sign the agreement, receive the cash, and your gold is held for the financing period.
- Redeem or extend. You repay the loan amount and the safekeeping fee to redeem your gold, or apply for an extension before the maturity date.
If the loan is not settled, the pledged gold can be auctioned. That is why it pays to know your maturity date and act early.
How does pawning work at Pajak Master?
Pajak Master is a licensed pawn shop with 13 branches in Selangor, Kuala Lumpur and Pahang. Here is how it works:
- What we accept: gold of any purity from 375 to 999, diamond jewellery, luxury watches and designer bags.
- How much you can borrow: usually 80% to 90% of the assessed value of your item.
- What it costs: monthly interest on the loan amount, and a RM0.50 processing fee per ticket. There is no valuation fee.
- Loan period: six months. We send an SMS seven days before your ticket matures, and before any auction we also send a letter and call you.
Which one suits you?
If you want financing under Shariah principles, Ar Rahnu is built for that. If you want to pawn something other than gold, such as a watch or a designer bag, or you need a branch close to you, a licensed pawn shop may suit you better.
Whichever you choose, ask three things before you sign: what it costs and how that is worked out, when the loan matures, and what your options are if you need more time.
Frequently asked questions
Is Ar Rahnu only for Muslims?
Generally, no. Ar Rahnu is usually open to everyone, even though it operates under Shariah principles. Check the terms with the provider you choose.
What items can be pawned?
Ar Rahnu usually accepts gold jewellery. At Pajak Master, we also accept diamond jewellery, luxury watches and designer bags.
What do I need to bring to Pajak Master?
A valid identity card or passport. You must be 18 or older.
If you are not certain where your own ticket stands, send us the ticket number and we will check the date and the options on it. There is no charge for asking and no obligation to renew.