AR-RAHNU IN AGRO BANK

ISLAMIC BANKING

CTU351

STUDENT NAME MATRIX NO.NOOR ANUN SUHADA

BINTI ALIMUDIN2011616274

PREPARED FOR :

USTAZ RAZIZI BIN TARMUJI

CONTENTCONTENT PAGESINTRODUCTION 3VISSION AND MISSION 4OBJECTIVE 5LOGO OF AGROBANK 6CHARACTERISTICS 7BENEFITS OF AR-RAHNU 8SAMPLE OF LETTER 11TOOLS OF USES IN AR-RAHNU

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CONCLUSION 14REFERENCES 14

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INTRODUCTION

   AGROBANK is an institution which provides holistic financial services and banking

facilities. We give our utmost priority to the needs of our customers by providing attractive

products and services such as savings activities, banking services, loan facilities, insurance

coverage and advisory services.

Bank Pertanian Malaysia (BPM) is the Government Development Agency that had

been established in 1st September 1969 under the Malaysian Parliament Act directly under the

Ministry of Agricultural until now. It is a Government-linked-Company (GLC) under the

Minister of Finance Incorporated (MFI). After 39 years involve in agricultural banking

sectors, Bank Pertanian Malaysia (BPM) had been changed to the private sectors under

Company Act 1965 and it had been registered under name of Bank Pertanian Malaysia

Berhad and change to the new name with is Agrobank until now.

“We give our almost priority to the needs of our customers by providing attractive

products and services such as savings activities, banking services, loan facilities,

insurance coverage and also advisory services. With a wide network of branches

throughout Malaysia, we are confident of providing the best services to all”.

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VISION The vision of AGROBANK is its want to become a leading bank with focus on the

agricultural sector and the mission is the bank will provide financial services holistically

according to market demands and customer needs through prudent financial management to

Agro-entrepreneur, Micro, small and medium-scale entrepreneurs and also Individuals.

Agrobank is one of an institution that provides many financial services and banking facilities

to the customers with an experience in agricultural banking and an excellent track record in

shaping and developing successful entrepreneurs.

MISSIONThe bank will provide a full range of financial services in a market and client driven,

financially sustainable way with specific target groups; agropreneurs, micro, small and

medium entrepreneurs and private individuals.

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OBJECTIVEThere are four (4) objectives under Agrobank, which is :

a) To promote agricultural department in Malaysia or any part thereof.

b) To coordinate and supervise the grant of credit from public funds for agricultural

purposes by various persons or bodies of person whether corporate or

incorporated.

c) To provide loans, credit facilities and other advances for development of the

agricultural including agricultural and marketing.

d) Continuously with the modern and progressively banking services that can meet

with the customers’ financial requirement.

There are several roles and functions that stated under the Agrobank with is

provides financial and banking services with focus to agriculture sector, upgrades

and encourages agricultural financing by the commercial banking sector, one of the

agents for the Government’s development programmed, to be the centre of

agricultural expertise and the last one is to provides credit rating for agriculture.

The objective under Ar-Rahnu at Agrobank is they want to provide a source of

immediate financing to individual in overcoming the cash flow needs. Besides that,

they also want to offer investment opportunities especially to the customer who in

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high-level income. Then, Agrobank also want to help their low-level income customer

from involving in illegal or unlicensed financing activities.

LOGO

The Agrobank’s new identity has been designed to reflect the Bank’s strategic intent to

competitively position and lead in the delivery of a full range of financial services with a

focus on agriculture. The logo or symbol in the form of a prominent red triangle

communicating stability and reliability has been chosen to reflect the new energy,

commitment and aspirations of Malaysia’s leading agricultural bank where the shared vision

between the Bank and its customer is represented through a circular icon within the symbol.

The Bank’s visual signature (the name and logo) is strengthened in the use of a high impact

font for ease of recognition and distinctiveness. In evolving its 39 years of dedication to the

development of the agricultural sector, its corporate tagline “Sentiasa di Sisi Anda” is

retained.

The design of Agrobank logo shows a symbol of a triangle with a symbol of a circle under it..

The circle symbol in the middle on the floor resembles the strength of bank focusing on the

needs of the customers as business partners.

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The triangle symbol resembles a general perspective which is the strength of the bank relying

too strong partnership and strategic relationship with business partners. The triangle symbol

also resembles stability and reliability. Stability of bank is especially on financial situation

and trust as it is one of the principles of achievement for the bank in the future.

Red colour on the logo reflects energy, power, passion and dedication in fulfilling its mandate

of our country as a leading agriculture bank. Black colour on the words AGROBANK is

chosen for clarity of application. The font used is Frutiger. This font is very suitable for

printing and signage because the letters are clear and tidy.

CHARACTERISTICSCharacteristics of Ar-Rahnu under Agrobank are :

a) Pawn limit.

Higher pawn limit that is for each pawned item maximum amount is RM 50,000.00

per day and a cumulative amount not exceeding RM 150,000.00

b) Pawn duration.

The pawn duration is longer. It means that for the first duration is for 6 months, then it

can be extended for another 3 months (can be extended by bank automatically if

customer not mention about the extension period) and lastly for another 2 months.

c) Safekeeping fee

The different that researcher can see under Ar-Rahnu adopted at Agrobank as

compared to the other bank is the lower safekeeping fee.

The lower safekeeping fee that stated under Agrobank as follow :

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BENEFITS OF AR-RAHNU SCHEME

The advantages of pawning gold at Agrobank are financing according to Syariah principles,

fast, easy and safety guaranteed, more cost efficient, fee remains static until full redemption

and longer pawn periods. All types of jewelleries made from gold are accepted in Agrobank

such as necklace, ring, earrings, and wrist and leg bracelets and latest, Agrobank have

received public gold as collateral. That is also cheaper (Safekeeping fee from RM0.50). Fixed

safekeeping fee throughout the pawn tenure and the pawn tenure is longer.

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APPLICANT ELIGIBILITYThe applicant eligibility is open to all Malaysian citizens and only for aged 18 years and

above.

PAWN LIMITThe pawn limits that prescribed by Agrobank is maximum RM150,000 and RM 50,000 per

day while the pawn duration is 6 months with addition period 3 months and lastly for another

2 months.

LOAN MARGIN

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The loan margin in ar-rahnu at AGROBANK is as high as 70% of the gold value.

TYPES OF ACCEPTABLE COLLATERAL

Types of gold jewelries such as:

• Necklaces/Bracelets/Anklets

• Earrings

• Rings

• Locket

HOW TO APPLY

To apply Ar-rahnu in Agrobank you must complete application letter form Agrobank counter,

with 1 copy of Identification Card, and you have a gold of jewellery you to pawn it. The

approach your nearest Ar-Rahnu counter for processing and get instant cash.

PAYMENT

To do payment of pawn, there are heve two way to pay it. The first is installment Payment

(ansuran). You must pay directly to the teller at the counter by only showing the Pawned

Letters (Surat Gadaian). This way is unlimited to payment times. The second way is full

Redemption. You just bring along pawned letters with full redemption payment to the

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counter. A representative should provide the pawned letters along with the customer’s IC.

You must have extention of the payment, and bring the Pawned Letters and storage fees.

LOST OF PAWNED LETTERSIf your lost of pawned letter, you can bring the certification letters (Surat Akuan Sumpah)

that are certified Pesuruhjaya Sumpah and a copy of Pawned Letters will be given without

additional fees.

SAMPLE OF LETTER

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TOOLSThe tools of uses in Ar-Rahnu process :

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CONCLUSIONAr-Rahnu is an Islamic pawn scheme whereby financing is given based on the

Al-Qardul Hassan Syariah principle and the customer uses his or her gold jewelries as

collateral. The said jewelry will be kept according to the Al-Wadiah Yad Dhamanah

principle and a minimal safekeeping fee will be charged. From the researcher opinion,

Ar-Rahnu also provides a source of immediate financing to assist individuals in

overcoming cash flow needs, offering investment activities as well as preventing from

the illegal or unlicensed financing activities.

The loan will be granted based on four (4) concepts, with is Al-Qardhul

Hassan (loan without interest), Al-Wadiah Yad Dhammanah (keeping valuable goods

by guarantee), Al-Ujrah (safekeeping fees) and Ar-Rahn (collateral). The safekeeping

fees are based on the value of jewelries and not depend on the amount of the loan.

This fee is will be charged differently by each Islamic pawnbroker.

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REFERENCES http://www.agrobank.com.my/ar-rahnu http://www.mohdzulkifli.com/2013/02/cara-pajak-emas-di-ar-rahnu.html

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