A study on the efficacy of Islamic pawn broking services in fulfilling socio –economic needs: a case of two cities-Kuantan and Kuala Terengganu in Malaysia

Mohd Noar, Nor Zaihan and Islam, Mohd Aminul (2015) A study on the efficacy of Islamic pawn broking services in fulfilling socio –economic needs: a case of two cities-Kuantan and Kuala Terengganu in Malaysia. PEOPLE: International Journal of Social Sciences, 1 (1). pp. 890-903. ISSN 2454-5899

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Abstract

In this paper we aim to examine the effectiveness of Al-Rahnu (Islamic pawn broking) services in fulfilling and enhancing socio-economic needs of its users as an alternative source of managing short term cash flow problem. To achieve our objectives we conducted a survey in two cities of Malaysia: Kuantan and Kuala Terengganu in the states of Pahang and Terengganu respectively. A sample of 128 users of Ar-Rahnu services were used to collect data through distributing a semi-structured questionnaire. The results were analyzed via the cross tabulation using excel spreadsheets. The findings from this study revealed that the community, especially the Malay ethnicity found Al-Rahnu services effective in fulfilling their needs of getting access to small short term loans with fast and hassle freeway and hence making them loyal to Al-Rahnu services. This implies that the Ar-rahnu services are well accepted as a better mean to ease short term financial difficulties and hence able to empower socio-economic needs of the people. The fulfillment of needs are derived from two main components of Al-Rahnu survey questions i.e. the loan tenure and the loan sufficiency.

Item Type:	Article (Journal)
Additional Information:	6362/49894
Uncontrolled Keywords:	Al-Rahn, Islamic pawn broking, socio-economy, loan tenure, loan sufficiency, Malaysia
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HA Statistics > HA154 Statistical data
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Science > Department of Computational and Theoretical Sciences
Depositing User:	Dr Aminul Islam
Date Deposited:	29 Feb 2016 15:39
Last Modified:	16 Oct 2018 11:33
URI:	http://irep.iium.edu.my/id/eprint/49894

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