Ar-Rahnu scheme as flexible micro financing mechanism for society: Case study on YAPEIM Ar-Rahnu in State of Perak
The implementation of ar-rahnuscheme which aims to assist the poor and enhance Islamic banking institution in Malaysia, since 1993 has proven to be able to provide immediate micro financing services to those with financial difficulties. Nevertheless, after two decades in operation, it is found tha...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
TEXTROAD Publishing Corporation
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/61023/ http://irep.iium.edu.my/61023/ http://irep.iium.edu.my/61023/2/J.%20Appl.%20Environ.%20Biol.%20Sci.%2C%207%288%29110-117%2C%202017.pdf |
| Summary: | The implementation of ar-rahnuscheme which aims to assist the poor and enhance Islamic banking institution
in Malaysia, since 1993 has proven to be able to provide immediate micro financing services to those with
financial difficulties. Nevertheless, after two decades in operation, it is found that the involvement of
members of Malaysian society in the scheme is still relatively low where the participants are mainly those of
low income and the poor. The unique scheme which is not driven by profit-making and free of riba (usury)
elements should be expanded to benefit all people and not confined to certain groups only. Hence, this study
is conducted to identify the level of knowledge among general public about the ar-rahnu system and the level
of acceptance among the masses of the scheme as a means to solve financial problems. It is hoped that the
study which focuses on ar-rahnu institution of YaPEIM can be used as a guideline by relevant agencies or
parties to ensure greater involvement of members of the society in the scheme, thus further augment the
position of ar-rahnu institution in mainstream Islamic banking system in Malaysia. |
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