Sharia gold pawning service more attractive

JAKARTA: Gold pawning service in sharia banks is getting more attractive for people, as transaction of guaranteeing loan with gold in PT Bank Negara Indonesia Syariah increased 633% in the first half of 2011.Our gold pawning transaction in 2010 was realized at IDR44.9 billion. In the first half of the year it was IDR285 billion, said BNI Syariah President Bambang Widjanarko over the weekend.The gold pawning service increased, as people are well informed about how easier and attractive transaction in sharia banks.In June, our gold pawning surged by 50% in line with the start of new academic year. Maybe people need cash for school fee and other education needs, said Bambang.Moreover, Bambang said that the bank predicted to have another 50% increase in gold pawning before Moslem holiday Ied el fitr, as people need money to return to homeland.At the same time, gold pawning transaction in sharia banks surged by 15% in the first half of the year, according to Bank Indonesia Sharia Banking Control Director Tirta Segara.Gold pawning business is no longer handled only by pawning company Pegadaian since sharia banks are capable of it. Besides BNI Syariah, other banks have actively run the business include Bank Mega Syariah, PT Bank Mandiri Syariah, and PT Bank Rakyat Indonesia Syariah.Bankers see the potential of pawning is big and it has controlled risk. Moreover, the price of the metal commodity tends to augment so it is very prospective for trade.Principally, pawning transaction in sharia banks is similar to that in other financing companies that lend money with gold as collateral. (T04/NOM)