Abstract
The objective of this study was to identify the factors that influence the acceptance of Ar-Rahnu Scheme among the rural population. Ar-Rahnu Scheme is a widely known Islamic pawn broking system in Malaysia. This scheme is currently offered by several institutions in Malaysia, and its acceptance by customers is a contributing factor to its growth and popularity. Using convenience and quota sampling method, 100 sets of questionnaires were distributed to customers of Ar-Rahnu Scheme in a rural area. The variables tested were Shariah concept, service quality, storage charge, and advertisement method. The study found that the main reason for the acceptance of Ar-Rahnu Scheme in the area is because of its low storage charge. The findings also show that Ar-Rahnu Scheme was well accepted among the rural population. Based on the findings, Ar-Rahnu Scheme providers should maintain their current low storage charge, intensively promote the scheme, and increase the quality of their service in order to be selected as the preferred fund provider and pawn broking system in Malaysia. This will enable more people in the rural areas to benefit from the scheme and more importantly, it provides them with an alternative means of obtaining financial assistance as opposed to going for illegal loan schemes or loan sharks.
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Suhana, M. et al. (2016). The Acceptance of Ar-Rahnu Scheme Among Rural Population. In: Abdullah, M., Yahya, W., Ramli, N., Mohamed, S., Ahmad, B. (eds) Regional Conference on Science, Technology and Social Sciences (RCSTSS 2014). Springer, Singapore. https://doi.org/10.1007/978-981-10-1458-1_61
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DOI: https://doi.org/10.1007/978-981-10-1458-1_61
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