Role of Ar-Rahnu as micro-credit instrument in achieving financial self-sufficiency among women micro-entrepreneurs

• Main Authors: Nik Azman, Nik Hadiyan, Kassim, Salina, Adewale, Abideen Adeyemi
• Format: Article
• Language: English; English
• Published: IIUM Press 2016
• Subjects: HF Commerce; HG Finance; HG3691 Credit
• Online Access: http://irep.iium.edu.my/55540/1/014%20ID%20Nik%20Hadiyan.pdf; http://irep.iium.edu.my/55540/2/55540_Role%20of%20ar-rahnu%20as%20micro-credit_Scopus.pdf; http://irep.iium.edu.my/55540/; http://journals.iium.edu.my/intdiscourse/index.php/islam/article/viewFile/925/671
• Institution: Universiti Islam Antarabangsa Malaysia

Compared to conventional pawnbroking, Islamic pawnbroking (or ar-rahnu) is relatively a recent product in the financial market. More recently, however, ar-rahnu-based microcredit facility has grown in importance over the past few years due to the increased awareness on Islamic finance in Malaysia and is increasingly a popular financing option, particularly among women micro-entrepreneurs. This study examines the role of ar-rahnu as a micro-credit instrument among women micro-entrepreneurs and aims to understand how the use of ar-rahnu could help them to achieve financial self-sufficiency. In achieving these objectives, the study conducts a survey on women micro-entrepreneurs in the Siti Khadijah market in Kelantan. Findings of the study are useful for the relevant authorities to take initiatives to promote Islamic-based micro-credit instruments, especially among women micro-entrepreneurs.