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
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: Ku...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Global Research & Development Services (GRDS)
2015
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/49894/ http://irep.iium.edu.my/49894/ http://irep.iium.edu.my/49894/1/ISLAMIC_PAWN_BROKING_SERVICES_2015.pdf |
| Summary: | 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. |
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