Determinants of MAIM'S zakat business loan in improving quality of life of the asnaf

Abdul Halim Bin Mohd Noor
Majlis Agama Islam Melaka (MAIM) has played an important role in solving the asnaf problems. One of the attempts done by MAIM in improving the quality of life of the asnaf is by providing zakat business loan. However, the major problem faced by MAIM is that the business loan given to the asnaf ended with a higher failure rate despite the training and facilities provided. The main objectives of this study is to examine the role of MAIM as loan provider, to overview the significant profile of the zakat recipients, to know the effects to the asnaf after loan distributes and also to study on how business loan will improve the quality life of its recipients This paper reviews and synthesis the relevant literatures on few topics such as the roles of zakat instructions in the context of asnaf development, zakat entrepreneurships as well as some issues on the quality of life. The study uses few methods to generate the findings such as securing information from secondary data, the descriptive analysis, correlation analysis, reliability and validity analysis, multiple regression analysis and as well as SWOT and TOWS analysis. A total of 100 respondents receiving zakat business loan assistance were sampled and 60 sets of respondents were returned back as sample valid survey questions. During the study period, our findings suggest that MAIM as the loan provider has somehow provide less supervision and monitoring, less training, advising and too many procedures towards the loan recipients. Finally, the study has proposed few strategies for MAIM to consider in improving the performance of its zakat business loan as well as improving the quality of life of its recipients.