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International Journal of Research and Innovation in Social Science (IJRISS)

Does Ar-Rahnu Contract Alligned with Social Finance Goal?

byZahirah Hamid Ghul; Norhasimah Shahabuddin; Muhammad Abdul Hadi Abdul Rahman; Heizal Hezry Omar

Published November 13, 2025  •  Vol. 9, Issue 10, pp. 4929–4937Open Access
DOI: 10.47772/IJRISS.2025.910000405

Abstract

This paper examines the application of Islamic micro-financing through the Ar-Rahnu contract using a content analysis approach. It explores whether Ar-Rahnu aligns with social finance goals. The findings suggest that Ar-Rahnu offers significant advantages over other Islamic micro-financing options due to its lower pricing, higher margins, and simplified procedures. Additionally, Ar-Rahnu operations are characterized by skilled employees, high customer satisfaction, and the integration of current technology. This study contributes to the literature by comparing Islamic financial products and employing a qualitative methodology that combines content analysis with in-depth interviews.

Keywords: Ar Rahnu Contract, Islamic Finance, social finance goal, Islamic pawnbroking contract

JournalInternational Journal of Research and Innovation in Social Science (IJRISS)
ISSN2454-6186
Volume / IssueVolume 9, Issue 10
Pages4929–4937
Publication dateNovember 13, 2025
DOI10.47772/IJRISS.2025.910000405
PublisherRSIS International
LicenseOpen Access

How to cite this article

Zahirah Hamid Ghul, Norhasimah Shahabuddin, Muhammad Abdul Hadi Abdul Rahman, & Heizal Hezry Omar (2025). Does Ar-Rahnu Contract Alligned with Social Finance Goal?. International Journal of Research and Innovation in Social Science (IJRISS), 9(10), 4929-4937. https://doi.org/10.47772/IJRISS.2025.910000405

BibTeX

@article{Zahirah2025,
  title   = {Does Ar-Rahnu Contract Alligned with Social Finance Goal?},
  author  = {Zahirah Hamid Ghul and Norhasimah Shahabuddin and Muhammad Abdul Hadi Abdul Rahman and Heizal Hezry Omar},
  journal = {International Journal of Research and Innovation in Social Science (IJRISS)},
  volume  = {9},
  number  = {10},
  pages   = {4929--4937},
  year    = {2025},
  doi     = {10.47772/IJRISS.2025.910000405},
  publisher = {RSIS International}
}