CBP eyes Rm350mil revenue from Ar-rahnu

KUALA LUMPUR: Co-opbank Pertama (CBP) is targeting to achieve a revenue of Rm350mil this year from its ar-rahnu services, above the Rm290mil achieved last year.

President and chief executive officer Mohd Nor Abd Razak said ar-rahnu has become a micro financing “turn to” facility for hawkers and petty traders impacted by Covid-19.

“When the previous conditional movement control order ended, I noted that many hawkers and petty traders turned either to conventional pawnbroking or ar-rahnu services for capital to start a business.

“This concept is not new; it is already a practice among women traders particularly in the East Coast where they use gold as revolving fund,” he said in a statement.

He noted that many people were still unaware of the advantages or understand the concept of Islamic pawnbroking or ar rahnu as compared to conventional pawnbroking.

“Hence, I feel it imperative to make the community aware of ar-rahnu and shift from conventional pawnbroking. — Bernama