The difference between Ar-Rahnu Schemes and Pajak Gadai Wangi

Baca versi Bahasa Malaysia

	Ar-Rahnu	Pajak Gadai Wangi
Concept	Islamic pawn based on Shariah principles.	Conventional pawnbroking.
Cost of loan	Monthly safekeeping fees based on the value of the pawned gold (marhun value).	2% interest per month based on the loan amount.
Loan Duration	The first period of 6 months may be extended for three months and finally another 2 months.	6 month loan period may be extended for another 6 months. A loan may be extended indefinitely.
Collateral	18K - 24K (750 – 999) gold only. Gold bars no longer accepted.	Pajak Gadai Wangi accepts gold of various grades of fineness, white gold, gold watches, gold bars, gold coins/dinars, diamonds, hollow gold jewellery and gold jewellery with stones. Gold items which are damaged, broken, torn, or crushed are also accepted.
Process	Customers must fill out forms and provide information such as employer’s name, work address, occupation, gross income and other personal details to the bank. Customers must also open a savings account with the bank.	Most transactions will take only a few minutes. No forms to fill out.
Credit Check and Bankruptcy Status	Customers who are declared bankrupt are not eligible to apply for loans under the Ar-Rahnu scheme. Loan details will be added to the Central Credit Reference Information System (CCRIS). A customer's credit report will be affected if the loan with the bank is not repaid on time.	No credit checks. Customers who are declared bankrupt can get a loan at a pawnshop. No customer details will be added to the CCRIS and a customer's credit history will not be affected.
Minimum Loan Amount	RM100 minimum.	Pajak Gadai Wangi can loan you an amount of less than RM100.
Opening Hours	Bank Rakyat and Agro Bank are closed on weekends and public holidays.	Pajak Gadai Wangi is open 6 days a week.

Why choose Pajak Gadai Wangi?

1. Pajak Gadai Wangi practices a high standard of business ethics and complies with the Pawnbrokers Act 1972.
2. Fair and transparent dealings: details of the pawn item, loan amount, loan duration and conditions of the loan are recorded in detail on each pawn ticket.
3. No late penalty charges or advance deductions.
4. Interest is charged based on the loan amount and not the value of the gold pledged. Therefore, customers can choose to borrow a large or small amount depending on their needs.
5. All valuables are securely stored and will not be tampered with.
6. Pajak Gadai Wangi provides a high loan amount and competitive interest rates.
7. Pajak Gadai Wangi will notify the customer whenever their loan duration is about to end so that customers can redeem or extend their loan duration on time.
8. An auction notice will be sent to the customer when their loan repayment period has expired. The auction will be overseen by the Ministry of Housing and Local Government and operated by a licensed auctioneer. Surplus money will be returned to the customer.

Read why Pajak Gadai Wangi is Your Loan Provider of Choice.