Factors influencing Muslim customers decision to choose Islamic hire purchase facility in Perlis

Islamic banks frequently use Malaysia's Islamic Hire Purchase (IHP) programme to finance automobiles. In order to ascertain the elements influencing customers' decisions to select the Islamic hire buy facility in Perlis, this research was carried out. The survey questionnaire, which was issued at random, had 105 clients who were using Islamic hire purchase in Perlis. T-test, ANOVA, Pearson Correlation, and Multiple Regressions were used to examine the data after they were obtained. The results demonstrate that the customers' decision to use Islamic hire purchase is highly influenced by religious obligation, awareness, tenure, and age. Islamic banks must place a strong emphasis on religious characteristics like ethics and customer-friendly manners because choosing Islamic hire buy depends heavily on these aspects. Islamic banks should broaden their customer base and improve performance through adherence to Islamic principles. Islamic banks also must be open and truthful with their clients in order to dispel misconceptions about Islamic hire buy.