Have you ever needed urgent cash but didn’t want to sell your gold jewelry? Many Malaysians face this exact problem. Fortunately, Ar Rahnu Bank Rakyat offers a shariah-compliant, low-risk solution: gold pawning.
This guide explains how to pawn gold at Ar Rahnu Bank Rakyat, step by step. By understanding the full process, you’ll avoid common mistakes and make smarter financial decisions.
Why Choose Ar Rahnu Bank Rakyat
Ar Rahnu offers Islamic pawning services that let you access quick cash without having to sell your gold permanently. Unlike conventional pawnshops, the system is based on shariah principles, meaning no interest charges, only a clear and fixed storage fee.
Operated by Bank Rakyat, Ar Rahnu provides a secure and professional experience that customers can trust. In fact, Bank Rakyat offers Islamic pawnbroking (Pajak Gadai-i) with financing of up to RM350,000.
What to Prepare Before You Go
To make the process smoother, prepare these items before visiting a branch:
- Valid MyKad – Ensure your identification card is active and not expired.
- Physical gold – Your gold must be clean, undamaged, and without gemstones. They accept 750, 835, 875, 916, 917, 950, and 999 purity levels.
- Basic personal details – You should also provide a working contact number. In some cases, they may ask for next-of-kin details.
When you arrive at the branch, a staff member will assess your gold’s purity and weight. This determines the marhun value, which is the market value used to calculate your loan amount.
Step-by-Step Guide to Pawn Gold
Now let’s walk through the full process of pawning gold at Ar Rahnu Bank Rakyat. In most cases, the entire procedure takes less than an hour.
1. Gold Evaluation
The officer will test your gold to confirm its authenticity and purity. They will then weigh it and calculate the market value using the current gold price.
2. Loan Offer
Next, you’ll receive a financing offer, usually up to 80% of the gold’s marhun value. You can choose to take the full amount or only what you need.
3. Sign the Contract
After you agree to the terms, the staff will give you a pawn contract. It clearly outlines your gold’s value, the loan amount, the pawn period, and the storage fee.
4. Receive the Cash
Once you sign the contract, the staff will give you the cash on the spot or deposit it into your account, depending on the branch policy.
5. Gold Storage
Finally, the staff will store your gold securely in their vault. It remains safe until you pay off the loan and redeem it.
This simple process gives you fast cash without the burden of high-interest loans or credit card debt.
Who Can Use This Service
Not everyone is eligible to pawn gold at Ar Rahnu Bank Rakyat. However, the basic criteria are easy to meet:
- Malaysian citizen with a valid MyKad
- At least 18 years old
- Must own the gold physically (not on behalf of someone else)
- Not currently blacklisted (some branches may check your financial records, especially for higher loans)
If you meet these requirements, you can walk into any Ar Rahnu Bank Rakyat branch to apply.
Types of Gold Accepted
Ar Rahnu only accepts certain gold purities to ensure accurate valuation and safe storage.
Here are the accepted types:
| Gold Grade | Purity | Description |
|---|---|---|
| 999 | 99.9% | Investment bars or bullion |
| 950 | 95.0% | High-end jewelry |
| 916/917 | 91.6–91.7% | Most common gold jewelry in Malaysia |
| 875 | 87.5% | Often imported from the Middle East |
| 835 | 83.5% | Typically older or mixed-content gold |
| 750 | 75.0% | 18K gold, common in designer pieces |
Important Note:
Ar Rahnu does not accept gold-plated items, fake gold, white gold, or anything with gemstones like diamonds or zircon. If your gold doesn’t meet the standards, the staff will reject it—even if it looks genuine.
How Long You Can Pawn and Renewal Options
Once you pawn your gold, you’ll get a fixed time period to repay the loan and reclaim your item.
Here’s the timeline:
- Initial period: 6 months from the pawn date
- Extension period: Additional 6 months (maximum 12 months total)
- Condition: You must settle all storage fees before extending
If you miss the deadline and fail to extend, your gold may be auctioned after a notice is issued.
Therefore, plan ahead and avoid waiting until the last minute to repay.
Storage Fees (Upah Simpan)
Ar Rahnu does not charge interest. Instead, they collect a storage fee, also called upah simpan. This is based on how long you pawn and the marhun value.
Here’s a general estimate:
| Marhun Value | Storage Fee (6 months) |
|---|---|
| RM1,000 | RM25–RM30 |
| RM5,000 | RM100–RM120 |
| RM10,000 | RM200–RM240 |
These rates may vary slightly between branches. It’s always best to ask for a breakdown before agreeing to the loan.
How to Repay and Redeem Your Gold
Knowing how to repay and get your gold back is just as important as pawning it.
Repayment Options:
- At the branch – Bring your receipt and MyKad to settle the balance over the counter.
- Online (e-Bayar portal) – Log in, key in your pawn number, and make payment using online banking.
- Via JomPAY – Use the JomPAY code from your receipt and pay through your banking app.
Make sure to pay both the loan principal and storage fees. Any late payment may lead to penalties or even loss of your gold.
Redeeming Your Gold:
Once you’ve paid off the full amount:
- Visit the same Ar Rahnu branch
- Bring your original receipt and MyKad
- Staff will verify your payment and return your gold
- You’ll sign a release form to confirm redemption
In certain cases, you can redeem only part of the gold, depending on how much you’ve paid back. This is known as partial redemption and depends on the branch policy.
Tips to Avoid Losing Your Gold
Here are some quick tips to make sure your gold stays safe and you avoid problems:
- Set reminders for your due dates
- Pay off storage fees early if you can’t redeem the gold yet
- Keep all receipts and documents in one place
- Ask questions before signing anything if you’re unsure
Most importantly, don’t wait until the last minute. The system might take time to reflect payments, especially if done online.
Final Thoughts
Learning how to pawn gold at Ar Rahnu Bank Rakyat helps you unlock the value of your gold without selling it. The process is easy, fast, and compliant with Islamic finance rules.
If you follow the steps, meet the requirements, and repay on time, you’ll get your gold back without issues. It’s one of the smartest short-term financial tools available to Malaysians today.
Feel free to share this guide with friends or family who might need it. And if you’ve tried pawning gold before, drop your experience in the comments.
If you want to start saving in gold that is easily pawned at Bank Rakyat, you can choose Public Gold, their gold bars and dinars are 999 purity, accepted at most Ar Rahnu branches, and come with buyback guarantees, making them a smart and liquid long-term asset.
Irfan Sa’id,
Feel free to contact me if you need help to get started or want personalized guidance. Just click the WhatsApp button to chat with me directly.
