The Relevance of Ar-Rahnu for MSME (Micro, Small, and Medium-Sized Enterprises) Community in Assuring Financial Well-Being

Abstract

Ar-Rahnu are becoming more and more well-liked by Malaysia’s Micro, Small and Medium Enterprises (MSMEs) as well as the general public. Ar-Rahnu are provided by a number of institutions to help people fulfill their needs and aspirations. The Ar-Rahnu system of Islamic pawnshops is distinct in that it provides quick, simple, and Shariah-compliant access to instant funds. In order to make it easier for MSMEs to use Ar-Rahnu’s services, this article will concentrate on the necessity of incorporating the MSME community in improving Ar-Rahnu’s reputation and expanding the company’s presence throughout Malaysia. To understand how the MSME community promotes Ar-Rahnu, this study uses a qualitative technique to examine publications from journals and academic books. In parallel, the researcher examines the distribution of Ar-Rahnu locations in Malaysia based on each organization’s website. The study comes to the conclusion that a friendly Ar-Rahnu by MSME community needs to be promoted in order to strengthen the Malaysian economic system and the Islamic pawnshop system. Ar-Rahnu can assist MSMEs by providing microfinancing promptly. Additionally, the Muslim community is essential in coordinating efforts to help businesses use Ar-Rahnu as a source of funding, assuring their financial well-being.