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The Comparison between Ar Rahnu and Conventional Pawn Broking
Nur Dini binti Ahmad Zan
Supervisor : Dr. Noorhaslinda binti Kulub Abdul Rashid
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
Ar Rahnu is a lease service that based on the jurisprudence of Islam aims to give
money loan as fast as possible. The main issue in Ar Rahnu is that the society is still
unsure about the concept and competition problem between Ar Rahnu and other
certified money lenders are at an intense level. This research is being carried out to
identify the role of Ar Rahnu in improving the people's economy, studying the factors
affecting the acceptance of Ar Rahnu and analyzing the differences between the
Islamic-based Ar Rahnu pawnshops and conventional pawnshops. The primary data
was collected by distributing questionnaire to 100 respondents in Kuala Terengganu
by using descriptive and inferential analysis. The results showed that the selection of
Ar Rahnu is affected by the genders, personal consumption, investment and good
service offerings. The Ar Rahnu needs to play its role by giving exposure to the public
and further improving its level of service so that the community is more attracted to
Ar Rahnu than conventional.
Keywords: Ar Rahnu, gender, personal use, investment and services.
1428 | UMT UNDERGRADUATE RESEARCH DAY 2018