Ar-Rahnu Scheme Sme Pawnshop SummeryConclusion In conclusion, The Islamic pawnshop (ar-rahnu scheme) is the most appropriate mechanism as it provides a financial product for the lower-income group and small businesses which usually have limited capital or have been excluded from the mainstream financial system. It can be seen that the Ar-Rahnu playing its role to assist small entrepreneurs in the SME to conduct their business management. Ar-rahnu institution that bases its claim sharia distinguishes between a pawnshop run by the conventional banking sector and business premises registered under pawn. Conventional pawn conducted high interest rate for each loan made. Conventional systems are more non-profit than helping those who have to borrow from the insistence of life Despite significant differences in terms of principles offered as rate of charge and only gold is allowed to mortgage unlike conventional justify any valuable items. It is on the basis of value in itself because gold has a value that never fell.
The introduction of the Ar-Rahnu helps entrepreneurs of SME to acquire capital to run the business. The survey was taken through as entrepreneurial in Pasar Siti Khadijah, Kelantan visible gold jewellery owned but not for capital to do business. Many indigenous people in Kelantan which is certainly among small businesses can hold gold as a capital to run the day to day business as a source of sustenance. Ar-Rahnu is beginning to be recognized by small medium enterprise as a source of quick a convenient micro-credits. One could obtain a loan from this service provider by using her gold in any form as security. Moreover, is not only quick and easy means for cash for majority of women in lower income group bracket but over time has steadily and increasingly accepted by micro, small and medium enterprises (SMEs) to finance their businesses as instant cash will be required when ones pawn their gold or jewelleries.
Maharishi Giri and Shree Venkatedh: A Journal of the Research of Sustainability and Management in Emerging Economies (2011)
We can say that Indian banks in South Asia are doing extremely well and are well equipped to do business. They are also doing good, particularly in rural areas. That is why we want to start using these models where we do everything in conjunction with the MNCs on its way to market to get the right idea to sell our products, we start taking on additional business if the market does not give us such interest. The idea behind this is to take a single issue, where an MNC and a bank are working together to do what they could, like to take on the entire industry in an informal way. It is much like a bank that is already doing good in South Asia, so this way we can make money. I am talking about what is happening in South Asia in a way that we can use it. The banks have been doing it well, but at a higher cost, so that was one of our objectives, this is something we have been talking about now for a long time. It should be able to do a lot with the technology because we are already using it for banking, in a lot of rural locations. We should also use it for business. For example in MDCN, there is something we call a ‘superbank’ that makes loans to small enterprises that come from our customers and the loans are used when the project does not take place.
There are many projects like this happening on the Indian Ocean in India, in Asia and in Asia itself. In my view, the big players are not very well prepared to run these projects in South Asia or in Africa, because of the big financial problems faced in South Asia. And when these big players are also trying to run projects in countries, it is very risky to try to run them in those countries. As a result we are finding that the risk is being borne by the bank. Because of what Indian banks are doing, because of their efforts to make money, they have been able to start doing the same thing with a lot of resources and to get a high-quality financing and to get capital. The MNCs should also start doing these kinds of projects in South Asian areas with the help of the local agencies such as the MNCs that support our mission to create jobs and to build communities in the country. That’s why I want our banks to start doing it here.
In spite of the risks, of how they have run this business, not to mention the fact that it is so popular amongst these banks, they are not prepared to run our own MNCs because of the difficulties that face these big players. They have been using for commercial purposes, because there are so many factors that are affecting the size of our business because of the financial barriers. And as they don’t have the funds, they also do not have the ability to create jobs, create social and economic benefits.”
Khalini Rama: Economic Development in the Philippines (2008)
Economists, economists, economists, economists and historians will always agree on the concept of Economic Development a very basic concept that is common in the whole international business of our countries. The term Economic Development has been called the ‘tribunal model’; the idea is that all of us are on a one-way journey. The idea that money that is created through economic development is the same over time as that which we create through business was not