Factors influencing acceptance of Ar-Rahnu: Comparison between private and state Ar-Rahnu providers in Terengganu
Many Muslim customers are hesitant to patronise the conventional pawnbroking shops due to the element of interest which is prohibited in Islam. Amid the demand for a shariah-compliant pawnbroking product, the first Islamic pawnbroking was setup by Maidam in Terengganu. The establishment of Ar-Ra...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Inderscience Enterprises Ltd
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/60108/ http://irep.iium.edu.my/60108/ http://irep.iium.edu.my/60108/ http://irep.iium.edu.my/60108/1/004%20Najihah%20MEJM%204%281%29.pdf |
| Summary: | Many Muslim customers are hesitant to patronise the conventional
pawnbroking shops due to the element of interest which is prohibited in Islam.
Amid the demand for a shariah-compliant pawnbroking product, the first
Islamic pawnbroking was setup by Maidam in Terengganu. The establishment
of Ar-Rahnu provides a convenience form of credit financing which is both
shariah-compliant and low cost for public to access financing. Since then, there
are currently several private Ar-Rahnu providers offering Ar-Rahnu products
such as Ar-Rahnu post office and Ar-Rahnu Bank Rakyat. This paper aims to
review factors influencing acceptance of Ar-Rahnu between private and state
Ar-Rahnu in Terengganu. This conceptual paper is primarily based on
theoretical considerations, framework and models. In the first part, the paper
will describe the development of the theories, and then review previous
literature that provides on factors affecting customer acceptance on Ar-Rahnu.
Meanwhile, the document analysis reviewed private and state Ar-Rahnu
providers in Terengganu |
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