Factors influencing low-income citizens’ choice of Sharia-subsidized housing credit in Indonesia

Haris Izzuddin Abdurrahman, Permata Wulandari and Karina Wulandari

International Journal of Housing Markets and Analysis, 2024, vol. 19, issue 2, 331-348

Abstract: PurposeThis paper aims to find several factors from religiosity aspects (perceived religiosity on property [PRP], perceived Islamic debt principle, perceived maqasid on homeownership, Shariah-compliant products [SCPs]) and financial aspects (mortgage repayment policy [MRP], well-versed bankers, perceived financial benefit [PFB], perceived risk), which influence the willingness of low-income people to choose Sharia-subsidized Kredit pemilikan rumah/mortgage (KPR) in Indonesia.Design/methodology/approachResearch data was obtained from 235 respondents and analyzed using the partial least square-structural equation modeling method.FindingsThe research results show that PRP, SCPs, MRP and PFBs significantly influence the willingness to choose Sharia-subsidized mortgage. The practical implication that can be applied to increase the willingness of low-income people to choose Sharia-subsidized mortgage is by promoting it more massively with elements of community religiosity.Originality/valueSharia banking as the bank implementing Sharia-subsidized mortgage can consider the financial benefits of the debtor by implementing payment policies that make it easier for customers who have financial difficulties, such as rescheduling and payment holiday policies so that public interest in choosing Sharia-subsidized mortgage increases, so the problem of housing needs in low-income people can find its solution.

Keywords: PLS-SEM; Religiosity; Financial; Financial willingness to choose; Sharia-subsidized mortgage (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/ijhma/article/19/2/331/125 ... e-citizens-choice-of (text/html)
https://www.emerald.com/ijhma/article-pdf/19/2/331 ... a-07-2024-0107en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ijhmap:ijhma-07-2024-0107

DOI: 10.1108/IJHMA-07-2024-0107

Access Statistics for this article

International Journal of Housing Markets and Analysis is currently edited by Dr Richard Reed

More articles in International Journal of Housing Markets and Analysis from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().