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Application of the Concept of Maslahah in Household Debt Management

New Developments in Islamic Economics

ISBN: 978-1-78756-284-4, eISBN: 978-1-78756-283-7

Publication date: 19 November 2018


Purpose – This chapter examines the application of the concept of maslahah in household debt management.

Methodology/approach – A combination of quantitative and qualitative approaches is employed. Questionnaires were used for data collection.

Findings – Malaysian Muslims become indebted for four main purposes: buying their first car, their first home, helping family members, and financing their studies. Thus, Muslims principally borrow funds to fulfil their dharuriyyat (essentials) and hajiyyat (complementary) needs, and in some cases, they borrow for tahsiniyyat (luxury) purposes.

Research limitation/implications – The respondents of this research are working Muslims in the Klang Valley, Kuala Lumpur, Malaysia.

Practical implication – This study helps Islamic finance institutions to develop better products to offer customers. Its results can also give a real picture about borrowing activities to the Credit Counselling and Debt Management Agency.

Originality/value – Prior studies have mainly examined household debt management. This study surveys local Muslims’ household borrowing pattern to understand the nature of personal debt management and then analyses these data against the concept of maslahah. This will enrich the currently available literature.




The authors would like to acknowledge the financial support provided by the University of Malaya under the Equitable Society Research Cluster (ESRC) research grant RP015C-13SBS.


Ali, N.A., Wan Ahmad, W.M., Sarif, S., Kamri, N.‘. and Azahari, R. (2018), "Application of the Concept of Maslahah in Household Debt Management", Rahman, A.A. (Ed.) New Developments in Islamic Economics, Emerald Publishing Limited, Leeds, pp. 19-33.



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