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W6, Chp 4a
Ar-Rahnu (Ar-Rahnu Institutionsin Malaysia (Muassasah Gadaian…
W6, Chp 4a
Ar-Rahnu
Intro
Definition
Providing short term financing to public by pawning his treasure to bank/pawnshop as a security
Concept & Objective
Objective
- provide fast, hassle-free & riba-free microcredit financing to small trader
- as alternative source of financing from conventional pawning scheme
- fulfill expensive mean without have to go to more expensive means > loan-sharks, money lender
- act as means of fast & less cumbersome financing
- develop socio-economic well-being of poor, by act as source of
- capital
- finacing education
- develop agricultural & village industries
- increase no of financial instrument under Islamic banking & finance
Criteria promote growth Ar-Rahnu
+comply with mission & objective
- based on qardh al-Hassan
- safe-keeping fee should lower than conventional
- if not customer(rahin) cannot reached, surplus/profit must be return to heir
- if customer(rahin) request extension maturity, then must be negotiable & not impose extra charge
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Role & Function Ar-Rahnu Institution
- provide a Source of Capital to Small Business
- Stimulate Economic Development
- Help in Community Capacity Building
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Modus Operandi
Conventional Pawnshop
- Lending process
- Redeeming Process
- Auctioning Process
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