IIUM Repository

Unleashing the ar-Rahnu as a micro-financing instrument for micro-entrepreneurs in Malaysia

Nik Azman, Nik Hadiyan and Md Zabri, Mohd Zaidi and Kassim, Salina and Abdul Kader Malem, Nurhafiza (2020) Unleashing the ar-Rahnu as a micro-financing instrument for micro-entrepreneurs in Malaysia. International Journal of Academic Research in Business and Social Sciences, 10 (6). pp. 183-196. ISSN 2222-6990

PDF - Published Version
Download (434kB) | Preview


The purpose of this paper is to compare the Islamic micro-financing and Ar-Rahnu. Using the content analysis approach, the paper examines the reports of micro-financing provided by Bank Negara Malaysia and comparing the rate with Ar-Rahnu. To validate the content analysis facts and to reveal the actual behavior and perception of micro-entrepreneurs towards ArRahnu, this study also conducted in-depth interview. The results show significant advantages of Ar-Rahnu as a better option as compared to the Islamic micro-financing as Ar-Rahnu has the lowest pricing charges, offer higher margin and lesser procedures required. In fact, ArRahnu also have skilled employees reflected to their customer satisfaction and updated with the current technology of innovation (fintech). This paper’s contribution to the literature is by including a comparison between the products within the Islamic financial system setting. Besides, in term of methodology, this study used multiple approaching techniques of qualitative method which are content analysis and in-depth interview.

Item Type: Article (Journal)
Additional Information: 4600/83087
Uncontrolled Keywords: Islamic Micro-Financing, Ar-Rahnu, Innovation
Subjects: H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Prof. Dr. Salina Kassim
Date Deposited: 23 Sep 2020 11:05
Last Modified: 23 Sep 2020 11:05
URI: http://irep.iium.edu.my/id/eprint/83087

Actions (login required)

View Item View Item


Downloads per month over past year