A Literature Review Implementation of Rahn Guarantees in Islamic Finance and Their Contribution to Financial Inclusion: A Literature Review

Abstract

This study conducted a narrative literature review to examine the implementation of rahn in Islamic financial institutions and its contribution to financial inclusion. Using Scopus as the sole database, 264 documents were initially identified, of which 14 met the relevance criteria and were analyzed in depth. The findings show that rahn is
implemented as a sharia-compliant collateral-based financing mechanism, supported by regulatory clarity, public acceptance, economic conditions, perceived benefits, and service quality. However, its implementation still faces challenges related to sharia compliance and legal recognition of collateral assets. This review also shows that rahn significantly improves financial inclusion by enhancing economic wellbeing, empowering vulnerable groups, and expanding access to financial services, especially for individuals without bank accounts. Despite its significant impact, its full potential requires strengthened regulation, improved literacy, and expanded institutional capacity. This study offers a conceptual synthesis linking rahn practices to the financial inclusion framework and highlights opportunities for future development.