Analysis of Community Understanding of Interest (Riba) and Its Influence on Borrowing Interest in Non-Bank Financial Institutions in Padang Bindu Village, Pasemah Air Keruh District, Empat Lawang Regency
Keywords:
Understanding, Riba, Borrowing Interest, Non-Bank Financial Institutions
Abstract
This study aims to examine public understanding of interest (riba) and its influence on the intention to borrow from non-bank financial institutions in Padang Bindu Village. This research employs a qualitative method with a phenomenological approach. Data collection techniques include interviews, observations, and documentation involving informants consisting of community members who have taken loans and representatives of non-bank financial institutions. Data analysis uses the Miles and Huberman model, including data reduction, data display, and conclusion drawing.
The results indicate that the community generally understands that riba refers to an additional charge in loans prohibited in Islam; however, this understanding remains general and not in-depth. Furthermore, such understanding does not significantly influence people's interest in borrowing. This is mainly due to urgent economic needs, ease of loan procedures, and social environmental influences. Additionally, some community members perceive that small amounts of interest are still acceptable. Thus, public understanding of riba has not fully influenced their financial decision-making behavior.
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Al-Qaraḍāwī, Yūsuf, Bank Interest Is Haram (Jakarta: Gema Insani Press, 2001).
———, Halal and Haram in Islam (Jakarta: Robbani Press, 2001).
Amirullah, Veithzal Rivai &, ‘Islamic Banking’, 2012
Annisa Eka Rahayu, Neneng Nurhasanah, Nandang Ihawnudin, ‘Comparison of the Concepts of Usury and Bank Interest According to Yusuf Qaradawi and Muhammad Sayyid Thantawi and Their Implications for Islamic Banking’, 7 (2021)
Antonio, M. Syafi’i, Islamic Banking: From Theory to Practice (Jakarta: Gema Insani Press, 2001).
———Sharia Banking: From Theory to Practice, revised edition (Jakarta: Gema Insani Press, 2011).
Aprilia, Titin, and Rachma Indrarini, “The Influence of Sharia Financial Literacy on Rural Communities,” Journal of Islamic Economics and Business, 2024.
Aquino, A., I. Waldelmi, and others, “Analysis of Sharia Financial Literacy on Usury among Members of BMT/Sharia Cooperatives,” Scientific Journal of Islamic Economics, 8.2 (2022), 1782–91.
Asyraf Wajdi Dusuki and Nurdianawati Irwani Abdullah, "Maqasid al-Shariah, Maslahah, and Corporate Social Responsibility," American Journal of Islamic Social Sciences, 2007.
Bloom, Benjamin S., "Taxonomy of Educational Objectives: The Classification of Educational Goals," Handbook I: Cognitive Domain (New York: Longman, 1984).
Botik, A. E. K., and others, "Muslim Society's Understanding of Usury and Conventional Banks," Scientific Journal, 2023.
Budiarti, Lina, "Interview Results with the Padang Bindu Village Community, Pasemah Air Keruh District, February 1, 2026, at 1:20 PM WIB" (interview, 2026).
Interest, Concept, Internal Bank, and Yusuf's Perspective, 'Sharia Economic Law, Rahmad Hidayat, Lecturer at STAI Tgk Chik Pante Kulu, Banda Aceh', 03 (2025), 67–77
Chapra, M. Umer, The Future of Economics: An Islamic Perspective (Leicester: The Islamic Foundation, 2000).
Collins, Sean P, Alan Storrow, Dandan Liu, Cathy A Jenkins, Karen F Miller, Christy Kampe, and others, “The Controversy Over Bank Interest in Islam: A Comparative Study of Yusuf Al-Qardhawi and Muhammad Sayyid Al-Thantawi,” 7 (2021), 167–86
Elvi, “Results of Interviews with the Padang Bindu Village Community, Pasemah Air Keruh District, February 1, 2026, at 1:15 PM WIB” (interview, 2026).
Elvia, Prisca, “The Influence of Students’ Understanding of Usury on Their Interest in Saving in Islamic Banks” (thesis, 2024).
Evan Hamzah Muchtar, Lilih Pardilah, "Usury in the Perspective of Fiqh Muamalah," 4 (2025), 68–78
Heng Yee Khor et al., "Financial Literacy and Inclusion," Asian Development Bank Institute Working Paper, 2018.
Idri, "Hadith Ekonomi: Ekonomi dari Perspektif Hadith Nabi" (Jakarta: Kencana, 2015).
Ilis, "Results of Interviews with the Padang Bindu Village Community, Pasemah Air Keruh District, January 24, 2026, at 2:00 PM WIB" (interview, 2026).
Ilis, Mrs., "Results of Interviews with the Padang Bindu Village Community, Pasemah Air Keruh District, January 23, 2:00 PM WIB," 2026
Village Head, Mr., "Village Head Office, Padang Bindu Village, Pasemah Air Keruh District, January 26, 8:30 AM WIB," 2026
Ministry of Religious Affairs of the Republic of Indonesia, Al-Qur'an and Its Translation (Jakarta: Ministry of Religious Affairs of the Republic of Indonesia, 2019).
Mannan, M. Abdul, Islamic Economics: Theory and Practice (Cambridge: Islamic Academy, 1986).
Muchtar, Evan Hamzah, and Lilih Pardilah, "Usury in the Perspective of Islamic Jurisprudence," Journal of Islamic Economics, 4.2 (2025), 68–78.
Muhammad Abduh, 'Islamic Banking Service Quality and Withdrawal Risk', International Journal of Islamic and Middle Eastern Finance and Management, 2012.
Muhammad Yusuf, "The Influence of Public Understanding of Islamic Banking on Customer Intention" (thesis, 2022).
Muslim ibn al-Hajjaj, Sahih Muslim.
Naufal, Murtadho, The Concept of Aqidah Education from the Perspective of Shaykh Salih Fauzan Al-Fauzan (Lampung: UIN Raden Intan, 2017).
Nita, "Results of Interviews with the Padang Bindu Village Community, Pasemah Air Keruh District, January 30, 2026, at 12:21 WIB" (interview, 2026).
Empat Lawang Regency Government, "Empat Lawang Regency Profile," https://www.empatlawangkab.go.id/?page_id=6577 [accessed 2026].
Purwanto, Ngalim, Principles and Techniques of Teaching Evaluation (Bandung: Remaja Rosdakarya, 2009).
Rahel, Muhammad, "The Influence of Motivation to Avoid Usury" (thesis, 2023).
Rahel, Muhammad, Abdul Rokhim, and Ahmadiono, "The Influence of Motivation to Avoid Usury, Product Knowledge, Brand Image, and Service Quality on the Decision to Become a Customer," Indonesian Journal of Islamic Economics & Finance, 5.2 (2022), 1–15.
Rika, ‘15 401 00265.Pdf’, 2019
Rodney Wilson, ‘Islamic Finance in the Global Economy’, Edinburgh University Press, 2010.
Saputra, Sandi, and Selviani Selviani, ‘Fatwa of the Indonesian Ulema Council Number 1 of 2004 concerning Bank Interest’, Al-Muqayyad, 4.1 (2021), 53–69 https://doi.org/10.46963/jam.v4i1.372.
Sari, D. I., and J. Afandy, “Savings Interests Reviewed from Sharia Financial Literacy,” Scientific Journal of Islamic Economics, 2024.
Setiawan, Romi Adetio, “Avoidance of Riba-Based Loans and Enhancement of Quality of Life: An Indonesian Context Analysis,” Religions, 14.11 (2023) https://doi.org/10.3390/rel14111376.
Simanjuntak, Rina Yanti, "Analysis of Public Understanding of Usury in Savings and Loan Cooperatives" (thesis, IAIN Padangsidimpuan, 2019).
Sula, Muhammad Syakir, "Sharia Insurance (Life and General): Concept and Operational System" (Jakarta: Gema Insani Press, 2004).
Suman, Agus et al., "Improving Sharia Financial Literacy in Village Communities," Journal of Community Service, 2024.
Thorsten Beck and Asli Demirgüç-Kunt, "Access to Finance: An Unfinished Agenda," World Bank Economic Review, 2008.
Wahab, Fatkhul, "Usury: Dirty Transactions in the Economy," Journal of Islamic Economics, 2.2 (2017), 26–41.
Yunisma, "Interview Results with the Padang Bindu Village Community, Pasemah Air Keruh District, January 24, 2026, 10:00 a.m. WIB" (interview, 2026).
Yusmelia, Annisa et al., "The Influence of Sharia Financial Literacy on Interest in Using Financial Technology," Tabarru Journal, 2024.
Zamir Iqbal and Abbas Mirakhor, An Introduction to Islamic Finance: Theory and Practice (Wiley, 2011).
Published
2026-05-02
How to Cite
Viana Retno Pinaseh, Yossy Arisandy, & Makmur. (2026). Analysis of Community Understanding of Interest (Riba) and Its Influence on Borrowing Interest in Non-Bank Financial Institutions in Padang Bindu Village, Pasemah Air Keruh District, Empat Lawang Regency. International Journal of Business and Quality Research, 4(02), 288-300. https://doi.org/10.63922/ijbqr.v4i02.3363
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