Alrahnu
University Malaysia Sabah
Labuan School of International Business and Finance
GE31703 Islamic Asset Management
Analysis on Ar-Rahnu collateral security structure: Can it really help the small business proprietor?
Semester 1-2012/2013
Prepared For: - Dr Rosita Chong No | Name | Matrix No. | Signature | 1. | GE SHUANG | BG10170111 | | 2. | NOR PADILAH BT ARMAN | BG10110331 | | 3. | NUR IZZATI BT MOHAMAD NORZILAN | BG10110363 | | 4. | NURUL HIDAYAH MAZLAN | BG10110396 | |
Table of Contents Abstract 2 Introduction 3 Literature Review 5 Methodology 7 The mechanism of Islamic pawn broking 8 The performance of Ar-Rahnu 10 Analysis on Ar-Rahnu collateral security structure 12 Can it really help the small business proprietor? 17 An issue related to Ar-Rahnu 19 Conclusion 21 References 23 Appendix 25
Abstract
This study aims at analyzing the collateral security structure of Ar-Rahnu, to find out whether it can really help the small business proprietor. This research will be conduct by conceptually analyzing other paper works and researches. Documentary analysis will be used to facilitate the research. Based on the previous studies, by learning the performance of Ar-Rahnu, the operation model of Islamic pawn broking institutions in Malaysia and analyzing on the collateral security structure of Ar-Rahnu, this paper found that Ar-Rahnu can really help the small business proprietors by lending money to them for their short term financing or in case of emergency with little charging of storage fees. For the purpose of deep study, an issue related with Ar-Rahnu is also discussed in this paper, in order to enhance the stability of Ar-Rahnu industry in Malaysia.
Key terms of the research 1. Ar-Rahnu 2. Islamic pawn broking 3. Collateral 4. Small business 5. Gold dinar
Introduction Islamic pawn broking is usually noted as Ar-Rahnu which is defined as a method of providing short term financing to people who are poor or
Labuan School of International Business and Finance
GE31703 Islamic Asset Management
Analysis on Ar-Rahnu collateral security structure: Can it really help the small business proprietor?
Semester 1-2012/2013
Prepared For: - Dr Rosita Chong No | Name | Matrix No. | Signature | 1. | GE SHUANG | BG10170111 | | 2. | NOR PADILAH BT ARMAN | BG10110331 | | 3. | NUR IZZATI BT MOHAMAD NORZILAN | BG10110363 | | 4. | NURUL HIDAYAH MAZLAN | BG10110396 | |
Table of Contents Abstract 2 Introduction 3 Literature Review 5 Methodology 7 The mechanism of Islamic pawn broking 8 The performance of Ar-Rahnu 10 Analysis on Ar-Rahnu collateral security structure 12 Can it really help the small business proprietor? 17 An issue related to Ar-Rahnu 19 Conclusion 21 References 23 Appendix 25
Abstract
This study aims at analyzing the collateral security structure of Ar-Rahnu, to find out whether it can really help the small business proprietor. This research will be conduct by conceptually analyzing other paper works and researches. Documentary analysis will be used to facilitate the research. Based on the previous studies, by learning the performance of Ar-Rahnu, the operation model of Islamic pawn broking institutions in Malaysia and analyzing on the collateral security structure of Ar-Rahnu, this paper found that Ar-Rahnu can really help the small business proprietors by lending money to them for their short term financing or in case of emergency with little charging of storage fees. For the purpose of deep study, an issue related with Ar-Rahnu is also discussed in this paper, in order to enhance the stability of Ar-Rahnu industry in Malaysia.
Key terms of the research 1. Ar-Rahnu 2. Islamic pawn broking 3. Collateral 4. Small business 5. Gold dinar
Introduction Islamic pawn broking is usually noted as Ar-Rahnu which is defined as a method of providing short term financing to people who are poor or
References: 1. Ahmad, S.A.B, Mansor, N. and Nadiah, A.N. (2012). Customer Acceptance on Islamic Pawn Broking: A Malaysian Case. Interdisciplinary Journal of Contemporary Research in Business Vol.3.10 February. 2. Amin, H. (2011). Modelling Ar-Rahnu Use in Eastern Malaysia: Perspective of Muslimah. Journal of Islamic Economies, Banking and Finance. 7 (3), 2. 3. Amin, H and Chong, R. (2011). Is the Theory of Reasoned Action Valid for Ar-Rahnu? An Emperical Investigation. Australian Journal of Basic and Applied Science. 5(10), 716. 4. Appannan, S. and Doris, G. (2011). Study on Islamic Pawn Broking Awareness and Factors Influencing the Scheme in Sungai Petani, Kedah. 2nd International Conference on Business and Economic Research. 5 11. Khan, J.A. and Nisar, S. (2004). Collateral (Al-Rahn) as Practicedby Muslim Funds of North India. J.KAU: Islamic Econ., Vol. 17, No. 1, pp. 17-34. 16. Rosly, S.A. (2005). Critical Issues on Islamic Banking and Financial Markets. Malaysia: DINA. P129-131. 17