Abstract: The objective of Ar-Rahnu scheme is to establish an alternative channel of financing especially to a conventional pawn broking. The operational of Ar-Rahnu scheme is more transparent, ethical and at the same time, satisfying the Shariah requirements. Beside, the scheme is hope to contribute to the development of the Malaysian economic-socio (including all races and religions) through micro credit finance and to increase the Islamic banking products in parallel with the government goals to develop an Islamic financial system which cover all financial aspects including banking, insurances and capital market.This research aim to investigate the key factors influencing customers to use Al Rahnu.Quantative research through survey questionare was conducted to achieve objective. The frequency analyses of demographic for 107 respondents involved in this survey.Finding showed that the factor of ‘Shariah View’ dominated the choices of the respondents as their preferences on the Ar-Rahnu scheme. Elements of “Al Quran and Sunnah as a souce of business ”,“ operations based on Islamic law and principle ”,“ interest free and “uncertainties free” ranked in the top tenth place as important to the respondents. Others factors are ‘Customer Service’: “issuance of receipt”, “security of transactions”, “fair treatment upon all religion”, and “customer’s confidentiality”; and the factor of ‘Pledge Asset’: “pawner’s belongings” and “all type of gold”.
Keywords: Key Factors influencing customers, Ar-Rahnu scheme.
Title: Key Factors Influencing Customers to Use Ar-Rahnu (Islamic Pawn Shop) In Malaysia: Evidence from Bank Rakyat
Author: Mohamad Abd Hamid, Ishak Abd Rahman, Ahmad Nafis Abd Halim
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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