Factor influencing the awareness of Ar-Rahn products among customer at Permodalan Kelantan Berhad, Kota Bharu Branch

The retail Islamic banking at present, offers various schemes of home financing, which typically are based on Bay’ Bithaman Ajil (BBA). Some Islamic financial institutions also offer home financing products that are based on Al-ljarah Thumma Al-Bay’ (AITAB), Al-ljarah Al- Muntahiya Bittamlik (AIMAT) and Al-Musharakah Al-Mutanaqisah (MM). As these schemes provide debt to the customers, bank would normally require them to pledge or charge their property in order to secure the payment or settlement of the debt. This pledge or charge is principally based on the concept of Ar-Rahn. Yusuf Hamid al-‘Alim (1994) argued that Ar-Rahn is one of the means provided in Shariah to achieve the main objective of Shariah in Mu’amalat, namely, to protect and preserve wealth and property of human beings. In order to achieve this objective, the rules and principles of Ar-Rahn is being tailored in a way that can lead to the achievement of Ar-Rahn’s own specific objective, which is primarily to protect the wealth of the creditor by ensuring the settlement of the debt. The failure to comply with these rules and principles might result failure to achieve Ar- Rahn’s objectives. Consequently, it will lead to a non-compliance of the main objective of Shariah in Mu’amalat.