FACULTY OF BUSINESS AND MANAGEMENT

PRINCIPLES AND PRACTICE OF AR-RAHNU (ISB511)

GROUP ASSIGNMENT 1

WRITTEN REPORT TITLE:

AR-RAHNU YAPEIM

GROUP MEMBERS:
AHMAD IZZUDDIN BIN MOHAMAD 2020964371
FAIZ AZIM BIN ROSLI 2020957765
SHAHRINA BINTI MOHD FADLI 2021393255
NURUL ZULAIKA BINTI MOHAMAD ROZALI 2021505239
NURUL NAJWA BINTI JAMHARI 2021172785

GROUP CLASS:
BAE6 M

PREPARED FOR:
DR. NORHASIMAH BINTI SHAHARUDDIN

DATE OF SUBMISSION:
15TH DECEMBER 2021

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Table of Contents

Acknowledgement ..........................................................................................................................3

1.0 Introduction ..............................................................................................................................4

1.1 Development of Ar-Rahnu in Malaysia .........................................................................4

1.2 Development of Ar-Rahnu YaPEIM .............................................................................6

2.0 Operating System .....................................................................................................................7

2.1 Background & Implementation of the Concept of Ar-Rahnu ........................................7

2.2 Board Cooperative & Ar-Rahnu YaPEIM Management Members ..............................8

2.3 Products........................................................................................................................10

2.4 Mortgage Process & Ways to Redeem a Mortgage .....................................................12

2.5 Mortgage Methods .......................................................................................................13

2.6 Mortgage Period...........................................................................................................14

2.7 Safe Keeping Fees .......................................................................................................15

2.8 Criteria of the Mortgage Items .....................................................................................16

2.9 Other Services ..............................................................................................................16

2.10 Payment Methods.......................................................................................................17

2.11 List of Branches & Business Hours ...........................................................................18

3.0 Conclusion ..............................................................................................................................20

4.0 Recommendations ..................................................................................................................21

5.0 References ...............................................................................................................................22

6.0 Appendices ..............................................................................................................................23

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 ACKNOWLEDGEMENT

First, we would like to express my gratitude to Almighty Allah to enable us to complete this
report. We are grateful because we managed to complete this report in a time given by our lecturer.
We would like to express our special thanks of gratitude to our lecturer of Principles and Practice
of Ar-Rahnu (ISB511), Dr. Norhasimah Binti Shaharuddin. Without her proper guide, this report
would not have been a success. In every phase of the report, her guidance shaped this report to be
complete perfectly. We also would like to say thank you to our lecturer because teaching and guide
us to understand how to make this report. Her motivation, support, and advice allow us to complete
this report. Besides that, we are very thankful to our group members because we always stick
together and worked hard to produce a good report with all afford and responsibility. We are also
thankful to our family members that gave us support to complete our report especially during the
current situation in which we are struggling during Online Distance Learning (ODL).

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 1.0 INTRODUCTION

1.1 Development of Ar-Rahnu in Malaysia

Ar-Rahnu is an Islamic pawnbroker that specializes in short-term collateralized borrowing.
It is free from riba and gharar elements and the borrowers must only pay the principal plus a
safekeeping charge at the maturity date that is specified in the agreement. Ar-Rahnu has received
a lot of support in the Malaysian market, particularly from micro, small, medium enterprises, and
increase the engagement of low-income group society. The development of Ar-Rahnu in Malaysia
provides borrowers with an alternative pawnbroking service that adheres to the Shari'ah principle
which is in line with their objectives to protect the public, especially the Muslim community from
transactions that have the elements of riba. In Ar-Rahnu, the creditor guarantees the debtor's
repayment, allowing the creditor to hold an asset in relation to the loan. If payment is not made or
default occurs, the creditor has the right to take any action against the asset, such as selling it or
putting it up for auction, due to the pawnbroker’s inability to comply with the contract's terms and
conditions.

Ar-Rahnu operates based on Islamic concepts such as Rahn (collateral), Al-Ujrah (the
lender is allowed to charge a fee for safekeeping of the pawned items), and Al-Wadiah yad
dhamanah (savings). In 2020, Ar-Rahnu has implemented a new concept, At-Tawarruq to replace
the concept of Qardhul Hasan (interest-free loan) since the safekeeping fees are no longer relevant
because Ar-Rahnu will only take profit directly from the margin. In short, the operation remains
the same, but this new scheme is purer in terms of Shariah-compliant (BERNAMA, 2020). To add,
Ar-Rahnu currently provides not only to Muslims but also to people of different races in the
country.

In 1992, the first Islamic pawnshop in Malaysia is Muassasah Gadaian Islam Terengganu
(MGIT) which was introduced by Malaysia and Terengganu Islamic Religious and Malay Customs
Council (MAIDAM). The main vision for MGIT began with a pawnshop project proposal that
aspired to open the first Islamic pawnshop in Terengganu. Furthermore, the number of customers
in MGIT increased significantly from 12,732 in 1992 to 26,632 in 2005, while the mortgage value
rose from RM9.85 million to RM28.9 million (Bhatt & Sinnakkannu, 2008). Ar-Rahnu has grown
due to the ease of lending money and providing immediate working capital or personal needs to

4
those low-income individuals who are looking for financial support. After 29 years of its
implementation, Islamic pawnbroking is in high demand and has become the main choice even
though the conventional pawn scheme that was mostly managed by the Malaysian Chinese
community has been monopolized the industry for a long time. To add, the implementation of Ar-
Rahnu in Malaysia is because of demand by the Muslim community and customers in Terengganu
that has condemned the system used by conventional pawnbroking has the element riba in the
contract (Nor Fadilah Bahari, Shafina Fisal, Shafina Fisal, Tajul Azli bin Shahadan, 2015).

Customers prefer to pawn with Islamic pawnshops because of the lower storage fees
compared to traditional pawnshops, as done by Muasassah Gadaian Islam Terengganu (MGIT).
Indeed, Terengganu's economic growth would not have been possible without MGIT. In August
1993, the Ministry of Finance introduced the Ar-Rahnu scheme, which was developed in
collaboration with three institutions which are Bank Negara Malaysia, Yayasan Pembangunan
Ekonomi Malaysia (YAPEIM), and Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat).
Currently, Bank Rakyat has become Malaysia's largest Islamic co-operative bank, with 118
branches of Bank Rakyat X Change operating in Malaysia YaPEIM has 203 outlets around
Malaysia including Sabah and Sarawak. Meanwhile, PKB (Permodalan Kelantan Berhad) built its
first Ar-Rahnu pawnshop in the state of Kelantan in March 1992 (Abdul Razak & Azila, 2011).

Bank Islam, which had previously entered the market in 1997, was followed by EON Bank
in August 2002 and Bank Pertanian Malaysia in September 2002, which together contributed to
the growth of the Ar Rahnu industry. Additionally, in 2012, Pos Malaysia, in collaboration with
its banking partner Bank Muamalat, launched the Ar Rahnu@POS brand of Islamic pawnbroking
services. Currently, there are many Ar-Rahnu facilities provided by banking institutions in
Malaysia such as RHB Bank Berhad, CIMB Bank Berhad, Agro Bank, and others (Loanstreet,
2013).

Customers who are unable to receive loans from banks or financial institutions due to
specific issues such as complicated loan management and not being eligible may benefit from the
existence of Ar-Rahnu. Hence, customers’ reliance on loan sharks has been reduced since Ar-
Rahnu has become more widely available. Due to its benefits such as halal financing options,
simple loan approval procedures, and cheap safe-keeping fees, it contributes to the increase in
demand for Islamic pawnbroking services as compared to conventional pawnbroking services.

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1.2 Development of Ar-Rahnu YaPEIM

On the 30th of January 1985, the Cabinet Meeting agreed in general to the plan for the
construction of the Yapeim Islamic Pawnshop, and in 1992, Bank Negara Malaysia took the
initiative to form the Scheme Steering Committee to carry out the plan. Ar Rahnu Yapiem has
been implemented by Bank Kerjasama Rakyat Malaysia Berhad from 1993 to 2021, Bank Islam
Malaysia Berhad from 1998 to 2004, and Koperasi Yapeim Berhad from 2000 to 2021.
The objective and strategy of Ar-Rahnu Yapeim is to provide micro credit to the
community, particularly the low-income group, in an affordable, efficient, and trustworthy manner
so that they can use it for small-scale company capital and other productive activities to help the
ummah's socio-economic development. As an alternative to the community meeting cash
requirements through Islamic law-based mortgage transactions.

The At-Tawarruq concept is a new dimension of Ar Rahnu Yapeim's micro credit service
project, which is always in line with the current advancements in Fiqh Muamalat, Economics, and
Islamic Finance from time to time, according to the Implementation Approach. This concept is in
line with Bank Negara Malaysia's Shariah Advisory Council's decision. This notion is in consistent
with Bank Negara's Shariah Advisory Council's (MPS BNM) decision in the Rahn Document
Policy in 2018-2019. (PD). The development of this new concept is founded on and rooted in Qard,
Rahn, Wadi'ah yad Dhamanah, and Ujrah contracts, with commodities platforms under the Bursa
Suq Al -Sila'

Below are the advantages of Ar-Rahnu YaPEIM over conventional implementation:

AR RAHNU YAPEIM CONVENTIONAL PAWNBROKING

Shariah-compliant Riba Interest
Jewelry stored is safer and more secure No guarantee
Excess mortgage money is returned after the Excess money will not be refunded
completion of the sale and purchase process.
Relatively low service charges Service charges according to the interest method are
higher
Giving notice to the pawnbroker of the The notice is not notified directly to the
auction ceremony pawnbroker, it is placed at the pawnbroker
counter

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 2.0 OPERATING SYSTEM

2.1 Background & Implementation of the Concept of Ar-Rahnu

Ar-Rahnu is an Islamic Mortgage Scheme based on shariah. The word Ar-Rahnu is derived
from Arabic (Rahn) which means pawn. Besides that, the objective of Ar-Rahnu is the same as
personal financing, which is to get cash but by pledging gold. At least the borrower is not so
burdened if unable to repay the financing because it has been pledged with gold. Yayasan
Pembangunan Ekonomi Islam (YaPEIM) was the originator of the idea in introducing Ar-Rahnu
in Malaysia before being followed by other institutions such as Kedai Al-Rahn (KAR) owned by
Permodalan Kelantan Berhad and Muassasah Gadaian Islam Terengganu (MGIT) which was
established by the Terengganu State government. The Cabinet Meeting on 30 January 1985 had
agreed in principle to undertake the Islamic Mortgage Establishment Plan.
YaPEIM and Bank Negara Malaysia took the initiative to establish a Scheme Steering
Committee in 1992 to realize the establishment of Islamic Pawnshops implemented through Bank
Kerjasama Rakyat Malaysia starting in 1993 until now, through Bank Islam Malaysia Berhad in
1998 until 2004 and through Koperasi YaPEIM Berhad starting in 2000 until now. As for the
YaPEIM institution, it has started its own operation through the YaPEIM Cooperative Berhad on
15 September 2000. In accordance with the objectives of its establishment to assist Muslims who
are less affluent and offer debt -based financing collateral that is free from usurious transactions.
YaPEIM looks more friendly and customer -oriented because the wage rates charged are lower
compared to some other Ar-Rahnu institutions. There are a total of 203 branches and nine Ar-
Rahnu YaPEIM mobile counters across the Country.
The implementation of Ar-Rahnu YaPEIM is based on five contracts, namely Tawarruq,
Ijarah Al-Khadamat, Musawamah, Wakalah and AR-Rahn. Firstly, Tawarruq is a muamalah
(deed) transaction involving two stages. In the first stage of asset purchase between buyer and
seller. While in the second stage, the buyer will sell the asset to a third party. Involvement of three
parties unrelated to each other. Secondly, Ijarah Al-Khadamat is refering to a rental contract for a
service. Apart from that, Musawamah is a reference to the sale and purchase of an asset that does
not involve the disclosure of purchase costs and profits to the buyer. Besides that, Wakalah is
refering to the representative or representative who takes care, maintains, and guarantees a
business. Finally, Ar-Rahn refers to a valuable item as collateral that is tied to a debt, that is, a
secured loan that can be paid with it if the debt is not paid.

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 2.2 Board Cooperative & Ar-Rahnu YaPEIM Management Members

Parihah Binti Hasan

PRESIDENT

Sabariah Binti Zainal Abidin

VICE PRESIDENT

Adawiah Binti Sahmad Noor Aizan Binti Mohd Aziah Binti Ahmad Bakir Siti Fatimah Binti
SECRETARY Hadri TREASURER Ibrahim
ASSISTANT ASSISTANT
SECRETARY TREASURER

Nor Azizah Binti Ibrahim Mohd Arisfadhilah Bin Mohd Shariff Ahmad Rizwan Bin Abdullah
MEMBER MEMBER MEMBER
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 Management of Ar Rahnu YaPEIM

MOHD RIZUAN MAHADI

Acting General Manager/
Deputy General Manager of
Operations of Koperasi Yapeim
Berhad

NURAFFIDA ABDUL MOHD ZUL AZRI MAHAT

RAHMAN Deputy General Manager
Deputy General Manager of Business Development &
Management Services Marketing

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2.3 Products

Ar-Rahnu YaPEIM has offered several products to facilitate the affairs of their customers. There
are seven 7 products offered namely AR-Rahnu Prestij YaPEIM, Ar-Rahnu Bisnes YaPEIM, Ar-
Rahnu Emas YaPEIM, Ar-Rahnu Didik YaPEIM, Ar-Rahnu Care YaPEIM, Ar-Rahnu i-Protect
(Takaful) and Ar-Rahnu Emas YaPEIM (SERY account).
The first, Ar-Rahnu Prestij YaPEIM is an introduced product that has a financing margin
of 70% of the value of gold (marhun) and the maximum limit of such financing for one transaction
is RM 25, 000.00. Customers also must pay a storage fee of RM 0.90 for every RM 100 worth of
Marhun. Furthermore, for the maximum accumulated financing amount provided by Ar-Rahnu
YaPEIM is up to RM 75, 000.00.

The second is Ar-Rahnu Bisnes YaPEIM. For this product will be given a financing margin
of 80% of the value of gold (marhun). A transaction financing margin of RM 75, 000.00 is also
provided and for the maximum accumulated financing amount given to customers is up to RM
150, 000.00. Ar-Rahnu also offers a savings wage of RM 1.00 for every RM 100 of Marhun Value
to its customers. For customers who want to apply for this product, they must meet some of the
mortgage conditions that have been set such as having a license, SSM certificate, a record of 3
transactions for the purpose of business mortgage or other supporting documents.

Next is Ar-Rahnu Emas YaPEIM. The financing margin for Ar-Rahnu YaPEIM will be
given as much as 80% of the value of gold (marhun) and the transaction financing margin of RM
100, 000.00. The maximum accumulated financing amount for this product will be given up to
RM 200, 000.00. Customers will also be given a savings wage of RM 0.90 for every RM 100 of
Marhun Value. Among the conditions that need to be followed by customers are such as having a
purchase receipt, YaPEIM Gold jewelry certificate card, YaPEIM Gold product card in the form
of Hallmark or Hologram.

Apart from that, the product offered by Ar-Rahnu YaPEIM is also Ar-Rahnu Didik
YaPEIM. For the financing margin of this product will be given as much as 75% of the value of
gold (marhun) and a transaction financing margin of RM 50, 000.00 is given. In addition, a
maximum amount of accumulated financing will also be provided up to RM 100, 000.00.
Customers who are interested in this product will be charged a storage fee of RM 0.85 for every

10
RM 100 of Marhun Value. Among the conditions that must be complied with by customers are,
must have a school/IPT offer letter either in or outside the country and a receipt of
kindergarten/school fees/student confirmation letter/university support letter.

In addition, Ar-Rahnu Care YaPEIM provides a financing margin of 80% of the value of
gold (marhun) and the maximum financing limit for 1 letter of mortgage account (SAG) is as much
as RM 5, 000.00. Customers will also be charged a storage fee of RM 0.75 for every RM 100 of
Marhun Value and the charge period is 6 months and is allowed one re -charge. The entire review
process takes 90 days from the date of submission of the assistance form along with complete
documents. Customers are also eligible to apply for YaPEIM charitable assistance where YaPEIM
will continue to channel the assistance if the application is approved.

Moreover, Ar-Rahnu YaPEIM also offers Ar-Rahnu YaPEIM i-Protect where this product
will offer takaful protection against mortgage transactions with a protection value as low as RM
1.25 for every RM 1, 000.00 Marhun value which is the value of jewelry for a protection period
of up to 12 months. This product also charges an additional value of RM 1.25 for each multiple of
RM 1, 000.00 Marhun Value and is open to all mortgage transactions.

Finally, the SERY Account is a YaPEIM Gold Account that allows customers to sell, buy
and store gold at the daily SERY price in Ringgit Malaysia (RM) easily and sell gold at any Ar-
Rahnu YaPEIM branch throughout Malaysia and also through the website or application mobile
via download in the phone. Among the conditions for the sale of gold in the savings Account is
cash where the minimum cash withdrawal is equivalent to 1 gram of gold value (current value)
and physical gold where the minimum physical withdrawal is 10 grams of gold.

11
2.4 Mortgage Process & Ways to Redeem a Mortgage

• Mortgage Process

The estimated
The weight of The required time of
Jewelry will be the item will be documents completion is
tested for its determined by must be filled 15 minutes (for
quality weighing the out by the a normal
jewelry pawnbroker operating
situation)

• Ways to Redeem Mortgages Items

Redemption is a mechanism by which the pawnbroker repurchases his/ her jewelry by paying
the sum of the loan amount and safekeeping fees.

Need to bring a copy of the blue Mortgage Declaration Letter

(copy of the pawnbroker) and identity card

The fees to be paid are sum of the loan amount and safe
keeping fees

Redemptions can be made by installments or lumpsum

before or on the maturity date

A representative is eligible to redeem the mortgaged goods, but only under certain conditions:
1) Must bring the blue Mortgage Declaration Letter.
2) Must bring a letter of representative that has been signed by the owner of the mortgaged
goods.
3) Must bring a copy of the identity card of the owner of the pawned goods /owner of the
Mortgage Declaration Letter.
4) Must bring the representative’s identity card.

If any loss of the Mortgage Declaration Letter occurs, the pawnbroker may get an affidavit from
the relevant Ar-Rahnu YaPEIM branch and bring the affidavit to the Commissioner for Oaths or
the court to be stamped and certified.

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2.5 Mortgage Methods

1. Step 1: Go to nearest Ar-Rahnu YAPEIM's branch

The first step that can be done for those who want to do a mortgage for the purpose
to exchange their jewellery into cash is the borrower may go to nearest Ar-Rahnu YAPEIM
branches. Since YAPEIM are available all over the state, the borrowers can choose any
nearest branches to make a mortgage.

2. Step 2: Make the membership's fee payment

Next step, the borrower are required to pay RM10.00 for the membership fee where
the fee are only be paid once for a lifetime. They are also do not have to make another
payment for membership fee if the borrower wants to make any mortgage in future.

3. Step 3: Bring the gold items as collateral and Identity Card or My Card
The third step is the borrowers need to bring the jewelleries gold such as rings,
bracelets, chains and so on to be used as collateral items to the YAPEIM branches. After
that, they are also are required to bring their identity Cards and give it to the safe keeper at
YAPEIM.

4. Step 4: Provide the heir’s information

As the borrowers, they are required to provide the necessary information that have
been stated by the YAPEIM if they want to make a collateral for the items. The information
needed including the heir’s full name, identity card, residential address and so on to be
used by YAPIEM.

5. Step 5: Fill in the mortgage application form

Finally, in order to make the process of the mortgage is valid, the borrowers need
to fill in the mortgage application that have been provided by the YAPEIM institutions.
After they are completed fill in all the requirements from the application form, they are
already finished all the steps to do a mortgage.

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2.6 Mortgage Period

2.6.1 General Maturity Date

In terms of mortgage period of time for YaPEIM, the basic mortgage period which is the
maturity period for the borrowers is up to six months and if the borrowers are unable to pay back
within the stated date or period, there will be the first extended period for 2 months and if the
borrowers still can fulfil it on the time given, there is another chance for them where second
extension period for another 2 months. If it has exceeded the period of 10 months, the mortgage
items will be auctioned by the safekeeper. However, renewal of mortgage or re-mortgage are
allowable but the borrowers must pay for the safekeeping fee.

2.6.2 Maturity Date Based on YaPEIM Product

PRODUCT MATURITY DATE

Ar Rahnu BISNES • 6 months (Settlement of safekeeping fee)
• 2 months (First)
• 2 months (Last)

Ar Rahnu EMAS • 6 months (Settlement of safekeeping fee)

• 2 months (First)
• 2 months (Last)

Ar Rahnu DIDIK • 6 months

• 2 months (First)
• 2 months (Last)

Ar Rahnu PRESTIJ • 6 months

• 2 months (First)
• 2 months (Last)

Ar Rahnu CARE • 6 months (Re- Mortgage is allowable for only one time)

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2.7 Safe Keeping Fees

Ar Rahnu YaPEIM (ARY) was introduced the ‘Ar Rahnu YaPEIM Online’ system which
offers online payment facility for total financing and retention fees of customers who have leases
in Ar-Rahnu Yapeim. Since the Movement Control Order (PKP) implemented by the government
since March 18 until the Conditional Movement Control Order (PKPB) is extended nationwide
until this December, the online payment method is an urgent need for consumers. Where
consumers do not have to worry if they are late in paying the storage fee or redeem the leased item
because we can check for ourselves when the leased item expires and can pay the storage fee online
only.Therefore the system introduced by YaPEIM is timely and can benefit all customers.

Ar Rahnu YaPIEM does not charge incidental charges or interest, but the pawnbroker must
pay the deposit rate only. Ar Rahnu Yapiem provides jewelry keeping services by charging based
on the value of marhun, which is the value of the jewelry. A minimum marhun value of RM100
will be utilised in the computation for mortgaged assets worth less than RM100. The keeping price
is applied on a daily basis. When the jewellery is paid the mortgage according to the predetermined
keeping rate, the daily safe keeping fee is calculated on the date of charge based on the value of
the marhun.The safe keeping charge for the mortgaged goods sold/auctioned shall be calculated
based on the marhun value on the original day the mortgage was made until the settlement period.

This formula was developed by Ar- Rahnu Yapeim to determine the savings wage:

US = M x K

100 30

US = Safe keeping fee

M= Value of Marhun
K = rate

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2.8 Criteria of the Mortgage Items

A mortgage is a mechanism that allows a pawnbroker to pawn his gold to acquire specific
financing. The loan must be repaid with a safekeeping fee which depending on the financing
period. Below are the criteria for the mortgage’s goods:

Quantity of Gold Gold Content Alternative Name

24.0 carat 99.9% Pure Gold
23.0 carat 95.0% 950 gold
22.0 carat 91.6% 22k gold/ 916 Gold
21.0 carat 87.5% 21k gold/ 875 Gold
20.0 carat 83.5% 20k Gold/ 835 Gold
18.0 carat 75.0% 18k Gold/ 750 Gold

2.9 Other Services

Ar-Rahnu YaPEIM is not just a gold collateral transaction, but they also provide several
other services for its customers such as Etiqa takaful protection, registration services and YaPEIM
sacrifice worship fund, gold buying and selling services, Kedah zakat collection consulting agent
for Kedah state only and they also provide Bank Islam registered bank agent services for selected
branches only in Malaysia such as at Ar-Rahnu YaPEIM Rembau, Negeri Sembilan and Penaga,
Penang. Among the banking services provided are such as cash deposits or investments, cash
withdrawals and prepaid line top ups.

16
2.10 Payment Methods

Ar-Rahnu YaPEIM accepts a variety of different payment methods:

1. Cash

Cash is one of the most prevalent methods to pay for purchase. Paper money and coins are
both classified as “cash”. Furthermore, cash has the advantage of being instant, but it is not the
most secure form of payment, because it is virtually gone if it is lost or destroyed. In this situation,
the customers can used cash to purchase items from Ar-Rahnu YaPEIM at their preferred branch.

2. Credit Card

The buyer's bill is temporarily deferred when paying with a credit card. However, the buyer
will receive a credit card statement with an itemized list of all purchases at the end of each month.
In this case, credit card can be used for both YaPEIM branches and YaPEIMall online website. In
addition, Ar-Rahnu YaPEIM accepts all Visa and MasterCards, both Credit and Debit, and is 3D
Secure (Verified by Visa, and MasterCard Secure) enabled.

3. Debit Card

When you pay using a debit card, the money is taken immediately from the buyer's account.
It is similar like writing a personal cheque, but without the burden of having to fill it out. In this
situation, debit card also can be used for both YaPEIM branches and YaPEIMall online website
like credit card. Furthermore, Ar-Rahnu YaPEIM accepts all Malaysian Visa and MasterCard debit
cards were subject to bank availability.

4. Online Banking

By using this method of payment, the buyer needs to agree to transfer money for the items
purchase to a bank account of the company with the amounts that including any applicable taxes,
fees, and shipping costs. In this case, the buyer shall transfer the payment to YaPEIM account for
the total amount of the items purchase. In facts, Ar-Rahnu YaPEIM accepts online bank transfers
from AmBank, Bank Islam, CIMB Bank, BSN, Maybank2U.COM, Public Bank, RHB, UOB,
OCBC, Bank Muamalat Standard Chartered, HSBC and Affin Bank.

17
2.11 List of Branches & Business Operating Hours

SELANGOR (29) PERAK (20) KELANTAN (20)

- Taman Medan - Tanjung Malim - Jelawat
- Bandar Tasik Puteri - Sungai Siput - Kuala Krai
- Kota Damansara - Sitiawan - Machang
- Puncak Alam - Kampar - Pengkalan Kubor
- Kelana Jaya - Lumut - Gua Musang
- Semenyih - Kuala Kangsar - Gua Musang 2
- Saujana Utama - Lenggong - Pasir Puteh
- Sri Gombak - Tapah - Wakaf Che Yeh
- Bukit Jelutong - Seri Iskandar - Pengkalan Chepa
- Hulu Langat - Meru - Kota Bharu
- Bandar Seri Putera - YBU UTC - Pasir Mas
- Rawang - YBU IPOH - Kok Lanas
- Selayang - RTC Gopeng - Rantau Panjang
- Salak Tinggi - Medan Gopeng - Tanah Merah
- Sri Andalas - Parit Buntar - Tumpat
- Ampang Point - Teluk Intan - Pasir Tumboh
- Seksyen 7 Shah Alam - Changkat Jering - Beris Kubor Besar
- Seksyen 17 Shah Alam - Bagan Serai - Wakaf Bharu
- Seksyen 19 Shah Alam - Kamunting - Bandar Baru Jeli
- Seri Kembangan - Medan Tasek - Ketereh
- Kajang - Hutan Melintang JOHOR (14)
- Pelabuhan Klang - Selama
- Kuala Selangor - Slim River - Ayer Hitam
- Bangi - Gerik - Bandar Penawar
- Banting - Mersing
- Batang Kali PAHANG (15) - Larkin
- Sungai Besar - Labis
- Taman Melawati - Gambang - Parit Jawa
- Kapar - Maran - Pontian
- Temerloh - Kota Tinggi
KEDAH (10) - Bera - Bukit Gambir
- UTC Pahang - Simpang Renggam
- Mergong - Kuala Lipis - Kluang
- Pokok Sena - Bandar Tun Razak - Segamat
- Jeniang - Balok - Parit Raja
- Sungai Petani 2 - Muadzam Shah - Pasir Gudang
- Kodiang - Pekan
- Jitra - Jerantut
- UTC Kedah - Bentong
- Yan - Jengka
- Gurun - Kuantan
- Kulim - Mentakab

18
 NEGERI SEMBLAN (10) PULAU PINANG (10) SARAWAK (10)
- Jelebu - Permatang Pauh - Sarikei
- Seremban - Simpang Ampat - Sibu
- Bandar Enstek - Balik Pulau - UTC Sarawak
- Tampin - Jelutong - Samarahan
- Rembau - Alma - Matang Jaya
- Senawang - Sungai Dua - Petra Jaya
- Gemencheh - Bayan Permai - Taman Sukma
- Port Dickson - Tasek Gelugor - Lawas
- Gemas - Kepala Batas - Limbang
- Kuala Pilah - Penaga - Miri

TERENGGANU (11) KUALA LUMPUR (9) SABAH (9)

- Jertih - UTC Kuala Lumpur - Sandakan
- Kuala Terengganu - Alam Damai - Lahad Datu
- Marang - Grand Season - Sipitang
- Dungun - Pekeliling - Semporna
- Kuala Nerus - Desa Pandan - Tawau
- Losong - Wangsa Maju - Inanam
- Kemaman - Setiawangsa - UTC Sabah
- Kota Putra - Bandar Tun Razak - Kota Belud
- Paka - Kampung Attap - Putatan
- Kuala Berang
- Setiu PERLIS (3) MELAKA (6)
- Jertih - Padang Besar - Paya Rumput
- Arau - Kota Melaka
PUTRAJAYA (1) -Kangar - Merlimau
- Presint 15 Putrajaya - Sungai Udang
- Ayer Keroh
- Masjid Tanah

Operating Hours

DAY TIME
Monday 9 a.m. – 4.30 p.m.
Tuesday 9 a.m. – 4.30 p.m.
Wednesday 9 a.m. – 4.30 p.m.
Thursday 9 a.m. – 4.30 p.m.
Friday 9 a.m. – 4.30 p.m.
Saturday Closed
Sunday Closed

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 3.0 CONCLUSION

As the overall performances of Ar-Rahnu YaPEIM institutions, YaPEIM one of the

successful Islamic pawn broking since it’s had a lot of branches in all state and at the same time
have followed all the requirements based on Islamic principles where it is including five
importance concepts which are Ijarah, Musawamah, Wakalah, Tawarruq and also Ar-Rahnu itself.
Ar-Rahnu YaPEIM are also stands with a lot of products under the Ar-Rahnu such as Ar-Rahnu
Prestij, Bisnes, Emas, Didik and Care. YaPEIM really aware about the safety in terms of being as
a safe keeper to all the jewelleries items that belongs by their customers. Next, all the jewelleries
items are being keep until the maturity date without any doubt for the customers or client’s item.
Ar-Rahnu also have the black and white which is called as a contract or agreement forms before
they accepted the collateral process. In terms of the items, Ar-Rahnu really focus on the gold
jewelleries or any gold including white golds and so on.

To conclude, the development of Ar-Rahnu has many advantages for society and all
Muslims compared to conventional pawnbroking systems. The reformation brought Ar-Rahnu as
one of the products and services that attract the attention from various religion because of the
privilege that have being bought to the banking institutions nowadays. Ar-Rahnu institutions are
also helps to develop and expanded the Islamic economy in Malaysia. Furthermore, Ar-Rahnu
institutions also helps to reduce and avoid the Riba’ which is conventional institutions will charge
the high interest rate on the late payment and so on. The implementation of each step is based on
the Shariah compliant and do not exceed the limit of the of Islamic principles that follows the
syarak rulings. Lastly, all the Ar-Rahnu institutions have the advantages to competed with other
pawn broking in Malaysia because of effectiveness of the Ar-Rahnu institutions.

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 4.0 RECOMMENDATIONS

First and foremost, we would recommend Ar-Rahnu YaPEIM to accelerate their digital
platform. YaPEIM must improve and upgrade their digital platform that already exists such as
their online website. When their online website has been upgraded, it will give a good impact on
them and their buyers which is it can easier the process of buyers purchasing items. Furthermore,
another example of upgrading the online website is ensuring that the platform can accept payment
both domestically and internationally. Moreover, during this pandemic Covid-19, the digital
platform such online website is very necessary for everyone, it is because the buyers are worried
to visit the physical branches, in which they want to avoid getting infected by the virus Covid-19.

Besides, Ar-Rahnu YaPEIM need to overcome the competition with their competitors
wisely. There are some ways to overcome the competition, the first one is fulfilling the needs of
the targeted customer better than your competitors can. This means that, solve the customers’
problems until they are fully satisfied with their services. The second way is set competitive
pricing. They should provide more affordable pricing rather than the competitors. However, need
to be aware and control the pricing wisely before it can collapse your business. Next way is, offer
great customer service. This is because great customer service can build loyalty among your
customers and differentiate your company from your competitors.

Lastly, Ar-Rahnu YaPEIM should stronger their marketing strategies on social media
and online platform. This is because nowadays, everyone will look at their social media or any
kind of online platform to search information or anything that they want. So, from that, when
YaPEIM have strong marketing strategies on social media such as make an advertisement on
Facebook, Instagram, and others, they can get new customers which did not know the existence of
your company before. In addition, YaPEIM also can hire influencers or other famous person that
can influence peoples, to promote your company to attract more attention of the public to know
the existence of your company and indirectly, can boost up your sales and gain more profits.

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 5.0 REFERENCES

Abdul Razak, & Azila. (2011). Economic and Religious Significance of the Islamic and
Conventional Pawnbroking in Malaysia: Behavioural and Perception Analysis.

BERNAMA. (2020, January 10). At-Tawarruq dalam perkhidmatan Ar Rahnu mulai bulan
depan. Sinarharian. https://www.sinarharian.com.my/article/65289/BISNES/At-
Tawarruq-dalam-perkhidmatan-Ar-Rahnu-mulai-bulan-depan

FAQ Ar Rahnu YaPEIM | Arrahnu Yapeim | Pajak Gadai Islam AR RAHNU YaPEIM. (n.d.-b).
AR RAHNU YaPEIM. https://www.arrahnuyapeim.net/faq

Loanstreet. (2013, September 19). Ar Rahnu – Islamic pawnbroking in Malaysia. | Loanstreet.

https://loanstreet.com.my/learning-centre/ar-rahnu-islamic-pawn-broking-in-malaysia

Payal Bhatt, & Jothee Sinnakkannu. (2008). Ar-Rahnu (Islamic Pawning Broking) Opportunities
and Challenges in Malaysia.

PENGURUSAN AR RAHNU YaPEIM Ar Rahnu YaPEIM | Arrahnu Yapeim | Pajak Gadai Islam
AR RAHNU YaPEIM. (n.d.). AR RAHNU YaPEIM. Retrieved December 5, 2021, from
https://www.arrahnuyapeim.net/pengurusan-ar-rahnu-yapeim

Profil Koperasi YaPEIM Berhad Ar Rahnu YaPEIM | Arrahnu Yapeim | Pajak Gadai Islam AR
RAHNU YaPEIM. (n.d.). AR RAHNU YaPEIM. Retrieved November 28, 2021, from
https://www.arrahnuyapeim.net/profil-koperasi-yapeim-berhad

Senarai Cawangan Ar Rahnu YaPEIM | Arrahnu Yapeim | Pajak Gadai Islam AR RAHNU
YaPIEM. (n.d.). AR RAHNU YaPEIM. Retrieved November 28, 2021, from
https://www.arrahnuyapeim.net/senarai-cawangan

Super User. (2021). Ar-Rahnu Biznita. Treasury.gov.my.

https://belanjawan2021.treasury.gov.my/manfaat/index.php/bm/biznita

Wan Shahdila Shah bt Shahar, Nor Fadilah bt Bahari, Shafina bt Fisal, & Hj Tajul Azli bin
Shahadan. (2015). The Development of Islamic Pawnbroking in Malaysia, Application
And Its Challenges.

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 6.0 APPENDICES

Online payment for AR-RAHNU YaPEIM

Ar- Rahnu YaPEIM branch in RAWANG Ar-Rahnu YaPEIM branch in CHERAS

New products from Ar-Rahnu YaPEIM

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