Civil Servants’ Perception Toward Personal Financing : A Case Study In Kuching / Masdi Umar

Personal Financing-I today has become undeniable reality as one of the popular products offered by either Islamic financial or Non-financial institutions in Malaysia. While personal loan in conventional banks is interest based, Personal Financing-I adapts the principle of Bai al-lnah. Besides this, Personal Financing-I is bundled with much lower profit rates and longer tenor on repayment period, as compared to conventional personal loan. According to Ismail (1992), the primary goal of Islamic banking is not to maximize profit as the interest based banking system does, but rather to render socio-economic benefits to the Muslims. As mentioned by Wafa, Nasri and Nizam (2003) the objectives of Islamic banking and philosophies should be in line with the revelations in the Al-Quran and Hadith. The term Personal Financing-I is means conduct of banking operation in consonance with Islamic teaching.