Determinants of customers' intention to use Islamic personal financing in Melaka / Nurain Syafiqah Juhari

Islamic personal finance was a financial system that operates according to Islamic rules and regulation. These entities were governed both by Islamic law and the finance industry rules and regulations that apply to their conventional counterparts. Islamic personal financing process and transaction must clear form any prohibited element like riba (interest), gharar (speculation) and maysir (gambling). The concept of Islamic personal financing was bank will act as intermediaries to purchased item on behalf of their client and sell it back with mark-up price. In addition, Islamic financial institutions will charge customers an amount known as 'profit rate' for providing them with a personal financing facility. This was because charging interest was not allowed in Islamic banking. So unlike personal loans offered by conventional banks, Islamic banks will offer personal financing with a profit rate that will be defined in the personal financing contract. Factors lead to this could be categorized into five namely l) attitude 2) social influence 3) religious obligation 4) pricing 5) government support of Islamic personal financing. Thus, this studies of which respondent are people in Melaka aims at evaluating the factors of intention to use Islamic personal financing.