Maqasid al-Shariah in Ar-Rahnu

Abstract

Despite the increasing popularity of Islamic pawn broking (Ar-Rahnu) as a method of financing in Malaysia, there have been no specific studies on the importance of Ar-Rahnu from the perspective of Maqasid Al-Shariah. The paper assesses the applicability of Ar-Rahnu in the context of Islamic financing in achieving the five objectives of Shariah. In achieving this objectives, the paper adopts a critical review of past literature and current operation of Ar-Rahnu scheme offered by Ar-Rahnu providers in Malaysia. The findings show that under the "protection of religion", Ar-Ralmu is free from prohibited elements in Islam like riba. gharar, and maysir. Meanwhile, under the "protection of life", Ar-Rahnu is effective in reducing poverty and helps individuals to have a better life. Moreover, it enhances borrowers' level of education or their dependants and will not cause the heirs of existing generations of borrowers to live in hardship due to responsibility to settle the loan. These two findings fall under the "protection of intellect" and "protection of dignity" respectively. Finally, under the "protection of wealth", the economic standing of borrowers can be improved through Ar-Rahnu. At the same time, they do not have to worry about the safety of their pawned item. As opposed to the conventional pawn broking, this study shows how Maqasid Al-Shariah is achieved through Ar-Rabnu.