Publication:
Ar-Rahnu Scheme Among Low-Income Civil Servants in Malaysian Public Universities

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Abstract

Ar-Rahnu scheme which provides short-term, fast, hassle-free, and riba-free financing to the public becomes more popular nowadays. Several factors can motivate the public to subscribe to Ar-Rahnu products, namely customers’ Shariah view, good customer service, pledge asset, good pricing system, locality, product management, and advertisement. This study reveals that Shariah view, pledge asset, pricing system, locality, and advertisement have a significant relationship with the acceptance of the civil servants in Malaysian public universities towards the Ar-Rahnu scheme. The most dominant factor contributing to the acceptance of low-income civil servants in Malaysian public universities towards Ar-Rahnu scheme in Malaysia is locality. The respondents from the lower-income group in Malaysian public universities agree that the locality of financial institutions providing Ar-Rahnu scheme in their system is considered an important element in enhancing the acceptance towards Ar-Rahnu scheme in Malaysia. Subsequently, future study is needed to acknowledge the acceptance and effect of Ar-Rahnu towards all levels of societies and wider areas.

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Ar-Rahnu, Acceptance, Customer Service, Pledge Asset, Shariah View

Citation

Indra, N. A. F. M., Mahussin, N., Ismail, K., Mustafa, H., Awang, M. D., & Abdullah, A. A. (2021). Ar-Rahnu Scheme Among Low-Income Civil Servants in Malaysian Public Universities. International Journal of Academic Research in Business and Social Sciences, 11(12), 670-681.