How to Pawn Gold at Ar-Rahnu 2026: Guide & Marhun Valuation

Ar-Rahnu is a Shariah-compliant gold pawnbroking scheme — you hand over gold as collateral, receive a cash loan, and redeem it later. Unlike conventional pawnbroking, Ar-Rahnu charges no interest (riba). Instead, the institution charges a safekeeping fee to hold your gold securely. This guide explains the concepts, how your gold is valued, and the step-by-step pawning process.

The four concepts behind Ar-Rahnu

Ar-Rahnu is built on four Shariah contracts working together:

• Qardhul Hassan — a benevolent loan with no interest. What you borrow is what you repay, with no riba added.
• Ar-Rahnu — the collateral contract itself, where gold is pledged against the loan.
• Al-Wadiah Yad Dhamanah — safekeeping with guarantee; the institution is responsible for keeping your gold safe and replacing it if lost or damaged.
• Ujrah / upah simpan — a fee for the safekeeping service, not interest on the loan. This is how the institution earns lawfully.

Key terms to understand

• Marhun — the pledged item, meaning your gold (jewellery or a bar).
• Marhun Bih — the cash loan amount you receive.
• Upah simpan (ujrah) — the safekeeping fee, usually charged per RM value of the marhun per period (for example, per month). It is a flat storage-based fee tied to the gold value, not a percentage of interest on the loan.

How is the marhun (your gold) valued?

When you bring gold to the counter, an officer weighs it and tests its purity (916 or 999). From that they compute the marhun value — the weight of gold multiplied by the institution's current gold rate.

Marhun value = gold weight (grams) × institution's current marhun rate

The institution then offers a margin — often around 65%–75% of the marhun value — as the loan amount (marhun bih). This margin acts as a buffer in case gold prices fall. Importantly, the marhun rate varies between institutions, so the amount you can borrow for the same gold can differ. It pays to compare first — you can compare marhun rates between institutions on our Ar-Rahnu page.

The step-by-step process

1. Bring your gold (jewellery or a bar) to the Ar-Rahnu counter.
2. An officer weighs and tests the gold's purity.
3. The institution computes the marhun value from weight × the current rate.
4. You are offered a margin (for example, ~65%–75%) as the loan amount.
5. You sign, receive cash, and pay the safekeeping fee.
6. You redeem (tebus) the gold within the set period — commonly 6 months, renewable.
7. If not redeemed, the gold may be auctioned. Any surplus from the auction after settling the debt is returned to you.

What to watch out for

Two rates decide whether Ar-Rahnu is worth it for you: the marhun rate (which sets how much you can borrow) and the safekeeping rate (which sets how much it costs). Both differ across institutions such as Islamic banks, cooperatives and licensed Ar-Rahnu operators. Compare both before deciding.

Before heading to the counter, check today's gold price on our homepage for a rough estimate of your gold's value, then compare marhun and safekeeping rates on the Ar-Rahnu page so you know which offer is most favourable before handing over your gold.