Role of Ar-Rahnu as Micro-Credit Instrument in Achieving Financial Self-Sufficiency among Women Micro-Entrepreneurs

  • Nik Hadiyan Nik Azman
  • Salina Kassim
  • Adewale Abideen Adeyemi

Abstract

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.
Published
2016-12-28
How to Cite
NIK AZMAN, Nik Hadiyan; KASSIM, Salina; ADEYEMI, Adewale Abideen. Role of Ar-Rahnu as Micro-Credit Instrument in Achieving Financial Self-Sufficiency among Women Micro-Entrepreneurs. Intellectual Discourse, [S.l.], v. 24, dec. 2016. ISSN 2289-5639. Available at: <http://journals.iium.edu.my/intdiscourse/index.php/islam/article/view/925>. Date accessed: 24 sep. 2017.

Keywords

Ar-rahnu, microcredit, women, micro-entrepreneurs, Islamic finance