Abstract:
This paper aims to identify the level of public awareness towards Islamic pawn
broking Ar Rahnu Scheme and the main factors that influence public to pursue
Islamic pawn broking in Pulau Langkwi, Kedah. Questionnaires were used to collect
the data and were analyzed via cross tabulation, mean score analysis and multiple
regressions. The findings indicate Pulau langkawi community is aware of the term
Islamic pawn broking but the awareness is at a different level among the races.
The majority of Chinese and Malays were aware of this scheme. However the
Indians were not aware of the scheme. The findings also indicate that the majority of
Islamic pawn broking consumers are in a lower income group, mainly from the
private sector with an income of RM1000 and below. It is also found that the main
factor influencing public to pursue Islamic pawn broking was its cheap cost of loan.
The other factors that were tested were confidential, customer service, locality and
income level.
