The Level Of Community Understanding Of Decisions In Borrowing Money At Mekar Bank Reviewed From Islamic Economic Law

Abstract

This study is motivated by the increasing use of Bank Mekar (PNM Mekaar) financing services by the people of Mesanggok Village, Gerung Sub-district, West Lombok Regency, as a solution to meet business capital and consumptive needs. Ease of access, the absence of physical collateral, light requirements, and the joint-liability system make this service attractive; However, the lending mechanism that imposes additional service fees raises problems from the perspective of Islamic economic law, particularly regarding the prohibition of riba and the validity of the contract. This study aims to determine the level of public understanding of the decision to borrow money from Bank Mekar and to analyze the practice from the standpoint of Islamic economic law. This is field research using a descriptive qualitative approach; data were collected through observation, in-depth interviews, and documentation, then analyzed through data reduction, data display, and conclusion drawing. The results show that the level of understanding of the Mesanggok community is relatively low; Borrowing decisions are based more on urgent economic needs and ease of access than on considerations of compliance with sharia principles. From the perspective of Islamic economic law, the conventional lending scheme accompanied by interest is inconsistent with the principles of muamalah because it contains the prohibited element of riba qardh, whereas the sharia scheme based on murabahah and wadiah contracts is potentially compliant insofar as it fulfills the pillars and conditions of the contract. The study recommends strengthening community sharia financial literacy so that people can make financial decisions in accordance with sharia provisions.