Determinants of customer’s intention to use Islamic pawn broking (Ar-Rahnu) scheme: A case study of (UPSB) staffs in University Utara Malaysia

• Main Author: Abdi, Mohamed Farah
• Format: Thesis
• Language: English; English
• Published: 2015
• Subjects: BP Islam. Bahaism. Theosophy, etc; HG Finance
• Online Access: https://etd.uum.edu.my/4921/1/s816860.pdf; https://etd.uum.edu.my/4921/2/s816860_abstract.pdf; https://etd.uum.edu.my/4921/

Islamic pawn broking (Ar-Rahnu) is considered as an instrument that serves as immediate and fast financial service. Islam deems the contract as a charitable and voluntary contract (tabarru'). According to this perspective of Islam, the conventional pawn broking operates in the opposite side, that is providing a financial service by pledging the customer‟s assets and charging interest as a result of money loaned out, whereas, Ar-Rahnu service is based on three principles, which are Qardhul Hassan, Wadiah, and Ujrah. The Wadiah principle is then categorized into two types, which are Yad Amanah and Yad Dhamanah. This paper is an attempt to determine the customer‟s intention to use Ar-Rahnu service by investigating five dimensions, which are attitude, social influence, religious obligation, pricing system and intention to use. The aims of this paper is to identify the differences of intention to use Islamic pawn broking (Ar-Rahnu) based on the demographic factors of (gender, age, educational level, monthly income level) and, to determine the relationship between (attitude, social influence, religious obligation, pricing system) and the intention to use Islamic pawn broking (Ar-Rahnu), and to examine the factors that influences mostly the intention to use Islamic pawn broking (Ar-Rahnu). The study has targeted certain population, that is, Uniutama Property SDN.BHD (UPSB) employees at University Utara Malaysia. The study employed a quantitative type of research using questionnaire and the sample comprised of 217 respondents. The result obtained from this study, reveals that the customer‟s uses Ar-Rahnu service for mostly two reasons or factors, which are social influence and religious obligation. Therefore, this study provided great contributions, implications and has recommended both the government and financial institutions on how to improve Ar-Rahnu usage