In a statement today, chief executive officer Khairul Kamarudin said the package provides an opportunity for account holders to collateralise their gold accounts for immediate cash needs or investment purposes. — Reuters pic

KUALA LUMPUR, Nov 20 — Bank Muamalat Malaysia Bhd has launched a new Muamalat Gold-i Account mortgage package for the Pajak Gadai-i Muamalat Ar-Rahnu service.

In a statement today, chief executive officer Khairul Kamarudin said the package provides an opportunity for account holders to collateralise their gold accounts for immediate cash needs or investment purposes.

He said Bank Muamalat is the first financial institution in the country to offer gold account mortgage in the Islamic pawn industry.

"Usually, pawn institutions only accept mortgages in the form of physical gold, namely jewellery, gold pieces and coins.

"However, through this latest package, Muamalat Gold-i Account holders can pledge their gold account as low as 10 grammes or up to RM500,000 in total financing for each customer,” he said.

Khairul said Muamalat Gold-i Account-mortgaged package customers would enjoy a financing margin of up to 80 per cent of the collateralised gold account value and a fixed profit rate of 0.9375 per cent per month.

He added that the financing installment payment is every six months for a period of up to 18 months.

As of September 30 this year, the total financing provided to customers through the Pajak Gadai-i Muamalat Ar-Rahnu increased by 121.47 per cent year-on-year to RM411 million.

Besides that, customers who mortgaged their Muamalat Gold-i Account are automatically eligible to participate in the "Kembara 999 Pajak Gadai-i” campaign which runs from May 1, 2020 to January 31, 2021.

The campaign offers 99 prizes with a total value of RM500,000.

Meanwhile, the bank announced Kamariah Ismail as the Grand Prize winner of the "Jom Pindah Ar Rahnu & Menang 1Kg Emas” campaign which ended on March 31.

It added that through the campaign, Pajak Gadai-i Muamalat Ar-Rahnu mortgage value increased 164.88 per cent to RM82.44 million, surpassing the target of RM50 million for the first quarter of 2020. — Bernama