30 MARCH 2011 - BERNAMA
RAWANG, March 29 (Bernama) -- Bank Kerjasama Rakyat Malaysia plans to open 13 Ar-Rahnu X'Change Franchise branches, bringing the total to 30 branches this year, in an effort to increase revenue from its Islamic pawn broking business.
Ar-Rahnu is a Islamic pawn-broking business that offers loans without any interest and a high and flexible period of financing.
Domestic Trade, Co-operatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said several locations have been identified to set up the Ar-Rahnu X'Change branches throughout the country between May and November.
Among the locations identified include Mantin (Negeri Sembilan), Meru (Klang), Bandar Tun Razak (Segambut) and Setapak (Kuala Lumpur), he said at the launch of Ar-Rahnu X'Change Koperasi Wawasan Pekerja-Pekerja Bhd.
Todate, 17 Ar-Rahnu X'Change franchise are operating in the country.
"The Ar-Rahnu product is an alternative to depending on illegal money lenders or "Ah'long" as the scheme provided a source of immediate financing to assist individuals in overcoming cash-flow needs," said Sabri.
Bank Rakyat Managing Director Datuk Kamaruzaman Che Mat said it hoped to disburse Ar-Rahnu loans totalling RM200 million this year.
He said all 17 Ar-Rahnu X'Change Franchise were performing well with RM121.7 million disbursed last year and RM24.8 million in the first two months of this year.