277 Abasyn Journal of Social Sciences Vol (12), Issue (2), 2019. Open Access DOI: 10.34091/AJSS.12.2.06 Analyzing the acceptance of Islamic personal financing using extended TRA model: Evidence from Khyber Pakhtunkhwa, Pakistan Sana Ullah Khan Ikram Ullah Khan Muhammad Haroon Khan University of Science and Technology, Bannu, Pakistan Safeer Ullah Khan University of Science and Technology, Beijing, China Abstract Islamic personal financing (IPF) is an emerging phenomenon though less investigated area in Islamic finance. IPF, which the Islamic banks offer according to the needs of their customers, has been overlooked especially using a comprehensive model(s) in most of the developing Islamic countries. This study closes the gap and examines the factors (i.e., attitude, government support, social influence, pricing, and awareness) that determine the acceptance of Islamic personal financing in Khyber Pakhtunkhwa (KP) province, Pakistan. Relying on the survey, the study used a sample of Islamic banks’ customers who were studying or doing a job in higher education institutions. The data were collected through a survey by distributing 600 questionnaires out of which 360 valid responses were used for further analysis. For analyzing the data, the Smart-PLS was used with structural equation modeling to get results of the hypothesized relationships. Results of the present study reveal that social influence, attitude, government support, and awareness have positive and significant effects while pricing has a negative but significant impact on the acceptance of IPF. The findings of this study can be used as a tool for making better policies and right practices of Islamic banks thereby enhancing the IPF in Pakistan. Keywords: Islamic personal financing, TRA, government support, awareness, Pakistan. With the emergence of Islamic banking, numerous Islamic banking products were introduced. Among them, the Islamic personal financing (IPF) is prominent as most of the individual customers need the IPF for their operational needs. IPF is a key Islamic banking product that gives financial help to their clients for buying the goods which they need. According to Dubai Islamic bank Pakistan, Islamic personal financing refers to the “facility based on the Islamic Finance concept of “Musawama”. That kind of financing facility that can be used for financial needs such as Marriage, Education, Medical expenditure, settlements of credit card loans, settlements of conventional loans or meeting any other emergency needs in “Halal/Islamic” way (https://www.dibpak.com, 2018). This product offering an opportunity to get interest-free loans as per the Islamic jurisprudence (Shariah). The Shariah-compliant products are provided by Islamic financial organizations in the areas of consumer banking, trade finance, general banking, investment banking and corporate banking (Ali & Chin-Hong, 2015). The IPF is highly significant for Muslim consumers as it provides not only the required financing for their daily needs but also gives internal religious satisfaction. In this regard, the Islamic banks play a pivotal role in introducing and developing the facility that can boost their banking. The pioneering work on IPF was conducted by (Amin, Rahman, Jr, & Hwa, 2011) in Malaysia where they explained that the full-fledged Islamic banks in Malaysia are determined to provide the IPF to their customers. The acceptance of such loans was theoretically covered by one of the behavioral models i.e., Theory of reason action which is more suitable to probe users’ behavioral aspects of accepting any product. The TRA model, originated from social psychology and introduced by (Fishbein & Ajzen, 1977) specifies how individuals' inner-intentions shape its outer behavior, thus linking attitude with the actual usage of any product/system. Another study worked on IPF by modifying the TRA model and used a sample taken from Karachi, Pakistan to catch the determinants of IPF (Ali & Chin-Hong, 2015), but these studies were limited and therefore