Factors influencing Mortgage Redemption Performance for Microfinancing Ar Rahnu among B40 Entrepreneurs

Mohammed ‘Izzuddin Ismail; Nurzafreena Abdul Aziz; Tengku Maaidah A Razak; Mohd Faiz Mohamed Yusof

doi:10.21834/e-bpj.v10iSI28.6953

Authors

Mohammed ‘Izzuddin Ismail Academy of Contemporary Islamic Studies (ACIS), Universiti Teknologi MARA, Shah Alam, Malaysia
Nurzafreena Abdul Aziz Academy of Contemporary Islamic Studies (ACIS), Universiti Teknologi MARA, Shah Alam, Malaysia
Tengku Maaidah A Razak Academy of Contemporary Islamic Studies (ACIS), Universiti Teknologi MARA, Shah Alam, Malaysia
Mohd Faiz Mohamed Yusof Academy of Contemporary Islamic Studies (ACIS), Universiti Teknologi MARA, Shah Alam, Malaysia

DOI:

https://doi.org/10.21834/e-bpj.v10iSI28.6953

Keywords:

Ar Rahnu, B40 Entrepreneurs, KAP Theory, Factors Influencing Mortgage Redemption

Abstract

Ar Rahnu has become an essential financial service in Malaysia, especially for B40 Entrepreneurs. However, the failure rate of mortgage redemption among B40 Entrepreneurs shows worrying figures. This study will identify the factors that affect mortgage redemption, such as business factors, borrower's attitudes towards their loans, other debt burden, and the amount of loans received. The theory of KAP is used as the focal theory. The empirical results of this study will help Ar Rahnu’s institutions and B40 entrepreneurs overcome mortgage redemption failures.

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