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How to Compare Upah Simpan Rates Across Ar-Rahnu Providers in Malaysia

Jasmine YapFounder & Lead Developer · Aug 6, 2026

Short answer

To compare Ar-Rahnu offers fairly, standardise the same gold value, cash required, holding period, purity and scheme. Then identify whether the provider calculates its charge on:

• Nilai Marhun: the assessed value of the pledged gold; or
• Financing value: the cash advanced to the customer.

Calculate the full amount paid, including profit or Upah Simpan, minimum charges, structural or Wakalah fees, applicable tax, stamp duty, renewal charges, late charges and any rebate or ibra’ for early settlement. Compare both:

```text

Total cost = periodic charge + compulsory upfront fees + applicable taxes

+ renewal/extension charges + other unavoidable charges

Cost per RM1,000 cash received = total cost ÷ cash received × 1,000

Simple cost ratio = total cost ÷ cash received

```

Do not treat the lowest advertised rate as automatically cheapest. The result depends on the cash amount needed and how long the gold will remain pledged.

1. Distinguish the charges before comparing them

Upah Simpan

Upah Simpan is commonly quoted as a charge per RM100 of Marhun value per month. In a comparison worksheet, record the exact calculation base and whether the provider applies the rate to the full Marhun value or uses another convention.

Kadar Keuntungan or profit rate

Kadar Keuntungan or a stated profit rate is a financing charge under the provider’s Shariah structure. It may be calculated on Marhun value or financing value, and it may be payable monthly, every six months, upfront or according to the number of days outstanding.

A rate such as “RM0.50 per RM100 of Marhun per month” is not directly equivalent to “9% per year of financing value.” Convert both into ringgit cost for the same scenario.

Wakalah or structural fees

A Wakalah fee is a fee associated with an agency arrangement. Some providers separately disclose it; others include Wakalah-related costs within a broader structural fee. It may be one-time, deducted from the advance, payable at the beginning or subject to a provider-specific schedule.

Do not add a separate Wakalah fee unless the quotation or current fee schedule shows that it is charged separately.

2. Record the current official terms and their dates

Rates and terms can change. Save the provider’s product page, product disclosure sheet or quotation with the date you checked it. The figures below are based on official information available or checked on August 2, 2026.

Important: The official pages do not necessarily disclose every branch-level rule, such as minimum charges, partial-month rounding, valuation treatment or renewal fees. Obtain a written quotation before relying on an illustration.

3. Use a standard comparison worksheet

Copy this structure into a spreadsheet for each quotation:

Include tax carefully

CBP’s current product page says its listed fees and charges are subject to 6% SST, if applicable. It does not mean that every amount in every transaction is automatically taxable. The Royal Malaysian Customs Department’s financial-services guidance also identifies circumstances in which Shariah-related Wakalah fees may be exempt from service tax. Therefore, record whether the provider’s quotation is tax-inclusive, tax-exclusive or not subject to SST, rather than adding 6% automatically. (cbp.com.my)

For Agrobank and TEKUN, do not assume that the published RM-per-RM100 figures include or exclude SST unless the current quotation or fee schedule says so.

4. Worked comparison: RM10,000 Marhun held for six complete months

This illustration assumes:

• RM10,000 is the accepted Marhun value;
• the provider applies the published rate to the full Marhun value, not marginal portions;
• six months means six complete billing periods;
• there are no extra fees, tax, late charges or renewal charges; and
• the customer remains eligible for the stated margin.

The first assumption must be verified. Agrobank and TEKUN publish rate bands based on Marhun value, but their public pages do not fully explain every rounding or partial-period convention. Ask the branch to confirm whether the applicable band is an all-in rate for the entire Marhun value. Do not assume that the bands are marginal tiers.

Agrobank illustration

The current Agrobank product information lists RM0.80 per RM100 for Marhun value of RM5,001 and above. It also states a RM10 minimum monthly profit in the product disclosure material. (agrobank.com.my)

```text

RM10,000 ÷ RM100 × RM0.80 × 6

= RM480 periodic profit before any other charges

```

At an 80% maximum margin:

```text

RM10,000 × 80% = up to RM8,000 gross financing

```

The actual amount may be lower because of gold purity, eligible-item rules, branch valuation, selected-branch restrictions, customer limits and approval. Agrobank’s page also lists different treatment for some 916 jewellery with gemstones and different accepted gold formats. (agrobank.com.my)

TEKUN Ar Rahnu 4U illustration

TEKUN’s page updated June 4, 2026 lists RM0.50 per RM100 of Marhun value per month, a 70% margin and a six-month pledge period for Ar Rahnu 4U. (tekun.gov.my)

```text

RM10,000 ÷ RM100 × RM0.50 × 6

= RM300 periodic profit before any other charges

```

At a 70% margin:

```text

RM10,000 × 70% = up to RM7,000 gross financing

```

The official page also shows different margins, rates and limits for TEKUN’s other schemes. Compare the exact scheme for which the customer qualifies, not merely the provider name. (tekun.gov.my)

What the example does—and does not—show

In this specific illustration, TEKUN’s periodic charge is RM180 lower over six complete months, but TEKUN also advances up to RM1,000 less under the stated margins. The comparison is therefore not simply “RM300 versus RM480”; it is also “RM7,000 cash versus RM8,000 cash.”

5. Include minimum charges: a small-pledge example

Minimum charges can change the ranking for small pledges.

Assume RM500 of Marhun value for six complete months:

Agrobank

At the lowest published band, the rate calculation would be:

```text

RM500 ÷ RM100 × RM0.55 = RM2.75 per month

```

If Agrobank’s RM10 minimum monthly profit applies, the amount becomes:

```text

RM10 × 6 = RM60

```

TEKUN Ar Rahnu 4U

Using TEKUN’s published RM0.50 rate:

```text

RM500 ÷ RM100 × RM0.50 × 6 = RM15

```

The TEKUN page reviewed does not state a comparable minimum monthly charge. The RM15 result is therefore only a rate-based illustration, not a guarantee that no minimum or other charge applies. Obtain the branch quotation.

This example shows why the worksheet must contain a separate minimum charge column. A rate that appears slightly cheaper may not be cheaper after minimum fees, rounding or fixed charges.

6. Compare providers when the customer needs the same cash amount

A fair comparison should sometimes hold cash received constant rather than Marhun value constant.

Assume the customer needs RM7,000 and both schemes approve their published maximum margins:

The calculation is:

```text

Agrobank: RM8,750 ÷ RM100 × RM0.80 × 6 = RM420

TEKUN: RM10,000 ÷ RM100 × RM0.50 × 6 = RM300

```

This result favours TEKUN in the simplified six-month scenario, but the borrower must pledge more gold value to obtain the same cash. Eligibility, caps, accepted purity, branch valuation and any minimum or additional fees can change the result.

7. Reproduce CBP’s financing-based calculation

CBP’s current Ar-Rahnu 6+6+6 terms state a 9% annual profit rate based on the financing amount and provide this formula:

```text

Profit = (9.0% × total financing) × (number of days ÷ 365)

```

The same terms state that the 3% structural fee is based on Marhun value, paid once on the first day and deducted from the financing amount. The fee components include transaction arrangement, gold valuation, storage monitoring, storage audit, commodity transaction and Wakalah costs, and takaful surcharge. (cbp.com.my)

CBP example: RM10,000 Marhun, 80% margin, six-month illustration

Assumptions:

• financing approved: RM8,000;
• structural fee: 3% of RM10,000 Marhun;
• six-month illustration uses 182 days;
• no SST is added unless the quotation confirms it applies; and
• no late, auction, stamp-duty or other charge occurs.

```text

Structural fee = RM10,000 × 3% = RM300

Six-month profit = (9% × RM8,000) × (182 ÷ 365)

≈ RM359.01

Total cost for illustration ≈ RM300 + RM359.01

= RM659.01

Net cash received, if structural fee is deducted from financing

= RM8,000 − RM300

= RM7,700

Cost per RM1,000 of net cash received

= RM659.01 ÷ RM7,700 × RM1,000

≈ RM85.59

```

This is not a final redemption quote. CBP’s actual calculation may use the exact number of days between transaction and settlement, and early settlement can produce ibra’ on the 9% profit component. The structural fee is not refundable or rebated on early settlement under the cited terms. (cbp.com.my)

CBP’s public product page separately displays a Wakalah-fee table, including 0.15% for financing from RM1,000 to RM9,999. Because the current 2026 terms describe a 3% structural fee that includes a Wakalah-related component, do not add RM12 to the example for a separate 0.15% fee unless the quotation explicitly charges it in addition to the structural fee. If a separate 0.15% fee is confirmed, its timing and tax treatment must be recorded—normally as a transaction-level fee, not a monthly charge. (cbp.com.my)

8. Compare short and long holding periods

A simple cost ratio is useful but does not fully compare different tenures. Add these measures:

```text

Cost per month of cash received

= total cost ÷ number of months ÷ net cash received × RM1,000

Annualised simple cost

= total cost ÷ net cash received × 12 ÷ months held

```

These are simple annualised ratios, not APRs. They do not necessarily reflect compounding, daily cash flows, mandatory payments, rebates, opportunity cost, default risk or the timing of fees.

For a transaction with a large upfront fee, compare both gross and net cash received. A fee deducted on day one means the customer receives less cash than the approved financing amount, even though profit may be calculated on the higher approved amount.

9. Check early settlement, renewal and late-payment treatment

Before choosing a scheme, ask the provider:

1. Is profit or Upah Simpan calculated by calendar month, complete billing period or exact days?

2. Is a partial month rounded up, rounded down or charged by actual days?

3. Must six months’ charges be paid before an extension is granted?

4. Is there a renewal, extension, valuation or rebooking fee?

5. Is early settlement charged for the full period or recalculated to the settlement date?

6. What ibra’ or rebate applies to unearned profit?

7. Are structural, Wakalah or valuation fees refundable?

8. Are SST and stamp duty included in the quotation?

9. What late charges apply after maturity?

10. What auction, administration or shortfall charges may apply after default?

Agrobank’s current product information says profit payments are made every six months, financing tenure is up to 18 months and there is no additional fee for early clearing. TEKUN states that the customer must settle the profit amount for each six-month period to continue into the next period. CBP’s cited 2026 terms provide ibra’ for early settlement on the profit component but not on the structural fee. (agrobank.com.my)

10. Understand the equity buffer with a worked example

A higher margin gives more cash but leaves less gross value between the gold’s current valuation and the financing balance.

Assume gold is valued at RM10,000 and its value later falls by 20% to RM8,000:

At the 80% margin, a 20% fall can eliminate the gross difference between the revised Marhun value and the original principal before profit, fees or auction costs. At 70%, RM1,000 remains before those costs. This is an illustration, not a prediction of a provider’s liquidation process.

A useful worksheet measure is:

```text

Net-equity buffer percentage

= (current estimated Marhun value

− outstanding principal

− estimated unavoidable charges)

÷ current estimated Marhun value × 100

```

The 15% “Formula Tidur Lena” threshold previously associated with GoldGram.my should not be presented as an industry standard. If a customer chooses to use a 15% threshold as a personal risk rule, it should be labelled as an internal planning assumption, not a provider rule or Shariah requirement. It also has limitations: gold prices, branch valuations, sale proceeds, fees and auction procedures may differ from the worksheet estimate.

For a rate-comparison article, avoid undefined terms such as “overlap strategy,” “Tukar Surat,” “shortfall zone” and “price floor” unless the provider’s exact process and costs are documented. In general:

• Tukar Surat means replacing or rebooking a pledge facility, but the eligibility, valuation and fees are provider-specific.
• Shortfall means the sale proceeds may not cover principal and permitted charges.
• Price floor is an estimated gold price at which the calculated value no longer covers the outstanding amount and costs.
• Overlap generally describes taking new financing before settling an existing pledge; it can increase total fees and leverage and should not be treated as a risk-free solution.

Confirm all such actions directly with the provider before maturity.

11. What the cheapest option depends on

The cheapest option depends on two separate questions:

If the gold value is fixed

For RM10,000 of Marhun over six complete months, the simplified TEKUN 4U example costs RM300 compared with RM480 for Agrobank, but it produces a lower maximum advance under the published margins.

If the cash requirement is fixed

For RM7,000 of required cash, TEKUN’s 70% margin requires RM10,000 of Marhun, while an 80% margin requires approximately RM8,750. The lower rate may still produce the lower total cost, but the customer must pledge more gold and satisfy the scheme’s eligibility and valuation rules.

If the holding period is short

A one-time fee can dominate the comparison. A provider with a lower periodic rate may be more expensive if it charges a large upfront structural, Wakalah or valuation fee and the customer settles quickly.

If the holding period is long

Renewal charges, six-month payment checkpoints, changing valuation, late charges and the risk of default become more important than the initial headline rate.

12. Practical comparison checklist

Before signing, obtain a written answer for each item:

• Exact scheme name and quotation date
• Accepted purity and item type
• Marhun valuation method
• Approved margin and cash amount
• Whether the rate is based on Marhun or financing value
• Whether the rate applies to the full amount or marginal tiers
• Minimum periodic charge
• Monthly, six-monthly or daily billing convention
• Partial-month and early-settlement rules
• Upfront, Wakalah, structural, valuation and processing fees
• Whether each fee is one-time, recurring or payable on renewal
• SST treatment and whether quoted amounts are tax-inclusive
• Stamp duty and default-related charges
• Maturity date and extension conditions
• Ibra’ or rebate on early settlement
• Auction process, auction costs and possible shortfall
• Net cash actually paid to the customer

Frequently asked questions

What is the difference between a Marhun-based rate and a financing-based rate?

A Marhun-based rate is calculated using the assessed value of the pledged gold. A financing-based rate is calculated using the cash advanced. For example, a 0.50% monthly charge on RM10,000 of Marhun produces RM50 per month, while a 9% annual rate on RM8,000 financing uses RM8,000 as its base. Convert both into total ringgit cost before comparing them.

How do minimum charges affect a comparison?

A minimum charge can make a small pledge cost more than a headline-rate calculation suggests. If a provider’s calculated monthly charge is RM2.75 but its minimum is RM10, the payable amount is RM10. Enter the minimum as a separate worksheet field and apply it before multiplying by the number of billing periods.

What happens if I settle an Ar-Rahnu facility early?

The result depends on the provider. Some providers recalculate profit to the actual settlement date or grant ibra’; some upfront or structural fees may not be refundable. CBP’s cited 2026 terms provide ibra’ for the 9% profit component but state that the 3% structural fee is not rebated. Agrobank’s current product information says there is no additional early-clearing fee. Always obtain the redemption quote rather than multiplying the monthly rate by the original tenure.

How should I compare schemes with different financing margins?

Run two comparisons: first, use the same Marhun value; second, use the same cash required. Report the resulting total cost, net cash received and cost per RM1,000 cash received. Also show how much gold must be pledged and whether each scheme’s caps, purity rules, branch valuation and customer limits permit the transaction.

Does six months always mean six monthly charges?

No. A provider may require six complete billing periods, a six-month checkpoint or a day-based calculation. TEKUN’s published conditions require profit settlement for each six-month period to continue, while CBP’s 2026 terms provide a day-based formula. Confirm whether a partial month is rounded or charged by actual days.

Should I add 6% SST to every Ar-Rahnu fee?

No. CBP’s page says its fees and charges are subject to 6% SST if applicable, while Customs guidance includes exemptions for certain Shariah-related Wakalah fees. Check the provider’s invoice or written quotation for each charge and record whether it is inclusive, exclusive or exempt.

What information should I track for multiple Ar-Rahnu certificates?

Track the provider, scheme, quotation date, purity, Marhun value, gross and net financing, margin, calculation base, periodic charge, minimum fee, upfront fees, tax treatment, next payment date, maturity date, renewal cost, outstanding principal and early-settlement amount. This makes tickets comparable and highlights which one has the highest cost or shortest deadline.

References

• https://wwwhq.agrobank.com.my/wp-content/uploads/2024/11/PDS_AR-RAHNU_LATEST.pdf
• https://goldgram.my