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Credit evaluation by the small-medium sized enterprises: Maqasid Shariah approach

Abdul Aziz, Mustafa Al-Malhuki and Abdul Rasid, Siti Zaleha and Aziz, Nadiah (2021) Credit evaluation by the small-medium sized enterprises: Maqasid Shariah approach. International Journal of Academic Research in Business and Social Sciences, 11 (10). pp. 190-204. ISSN 2222-6990


Official URL: http://dx.doi.org/10.6007/IJARBSS/v11-i10/10919


This paper aims to examine the practice of credit evaluation by Islamic banking in evaluating financing proposals from the SMEs in Malaysia. Also, how the approach of Maqasid Shariah which encompasses of religion, life, lineage, intellect and property influencing the application of credit evaluation from the SMEs. This paper measures credit evaluation on Islamic banks based on review of literature; the inputs are extracted from the existing relevant studies on the subject matter. The findings reveal that that the elements of Maqasid Shariah are not being considered meticulously for credit evaluation processes. The Maqasid Shariah approach in credit evaluation could bring significant values for SMEs in securing financing. This novel study significantly focuses on how the SMEs in Malaysia process the credit evaluation based on the CAMPARI model while adapting the concept of Maqasid Shariah. As this conceptual paper focuses on the previous research and existing available data, the paper is a stepping-stone that enables the researchers to obtain an inclusive and complete perspective and solutions for both Islamic banking system and their customers.

Item Type:Article
Uncontrolled Keywords:Islamic banking, credit evaluation, Maqasid Shariah, campari, small-medium sized enterprise
Subjects:H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HG Finance
Divisions:International Business School
ID Code:96790
Deposited By: Yanti Mohd Shah
Deposited On:23 Aug 2022 12:14
Last Modified:23 Aug 2022 12:14

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