Hijrah Dinar - Rahsia Kekuatan Ekonomi Islam

KUALA LUMPUR: Gold’s reign as a safe haven investment is strengthening. The price of the precious metal has almost doubled within a year — it was traded at only US$1,192.51 (RM3,584.69) an ounce a year ago and hit a high of US$1,800 an ounce on Aug 11.
As an investment, gold is held mainly for capital appreciation. But its popularity and security has prompted lenders to create a new mode of financing. Islamic pawnbroking schemes offered by Bank Rakyat and Agrobank allow borrowers to use gold coins or jewellery as collateral. Designed to adhere to Islamic laws, borrowers pay a safe-keeping fee, as opposed to a compounding interest rate.

These pawnbroking schemes are useful for those who need a small loan of at least RM100. At Agrobank, the margin of financing is 65% of the gold price for new customers, while repeat customers are entitled to a higher margin of 70%, says Kamal Abang Abu Bakar, Agrobank’s head of personal banking.
New customers have access to financing with a minimum gold value of RM155, he adds (see box story on how the scheme works).
Islamic pawnbroking schemes appear to be more cost-competitive than personal loans, which typically charge flat interest rates of 9% to 12% a year.
Pawnbroking schemes charge a monthly safe-keeping fee of 50 to 75 sen for every RM100 worth of gold. This translates into an interest rate equivalent of 0.5% to 0.75% a month, or 6% to 9% a year. The financing tenure is typically fixed at six months, although customers are allowed to renew it in multiples of six months.
Bank Rakyat’s Az-Zahaba scheme, which is an extension of the Ar Rahnu scheme, however, offers a longer repayment period of 36 months. As the scheme is backed by a coveted precious metal, the likelihood of approval is also higher.
Kamal adds: “If you apply for a personal loan without a collateral, the approval is at the discretion of the bank. You do not know whether the amount you apply for will be approved. However, if you have gold jewellery, you have a better idea of how much you can borrow under the Islamic pawnbroking scheme.”
At the maturity of the tenure, your gold will be returned to you. If you fail to pay your principal and the safe-keeping fee, the bank has the right to auction off your gold. However, if the price of gold has increased during the auction, the excess balance (after deducting the principal and safe-keeping fee) will be refunded to the borrower, says Kamal.
“If the reverse happens, we will ask the borrower to pay us the amount borrowed and the safe-keeping fee. Then, we will return the gold jewellery to him. If he can’t pay up, he will be blacklisted,” says Kamal. The gold will be retained by the bank.