Modeling Financial Inclusion in the Ar-Rahn’s Financing as Imperatives for Economic Well-Being in Malaysia

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This study examines the relationship between financial inclusion and the use of ar-rahn financing in enhancing individual economic well-being. Primary data assembled through questionnaire surveys were analyzed by using factor analysis and structural equation modeling. The results demonstrate that financial inclusion through patronising ar-rahn significantly improves the well-being of individuals and society. Importantly, the usage of ar-rahn financing for production purpose such as economic activity is claimed to be significant in enhancing individual well-being resulting into micro balancing and improving the financial and socio-economic development.