Loan Sharks Research Articles

Keterlekatan (Embeddedness) Tindakan Ekonomi Antara Tukang Kredit Dengan Client Dalam Peminjaman Uang (Studi pada Masyarakat di Jorong Sungai Tarab, Kecamatan Sungai Tarab, Kabupaten Tanah Datar)

This study aims to explain the form of embeddedness of economic action between “Tukang Kredit” and clients in lending money to the community in Jorong Sungai Tarab, Kec. Sungai Tarab, Kab Tanah Datar. The approach used is a qualitative approach with a descriptive type. The theory used is Granovetter's theory, namely the concept of embeddedness. The technique of withdrawing informants using purposive sampling technique with the number of informants 14 people. Data collection methods with observation, interviews, and document studies. The unit of analysis is individual. Data analysis used was developed by Miles and Huberman, namely data collection, data reduction, data presentation and conclusion drawing. Based on the results of the study, the embeddedness of economic action between loan sharks and clients in lending money is due to social relationships and social interactions based on personal relationships that last a long time from time to time so that from these economic actions there are the same values, such as exchange and reciprocity, trust, kinship, and social networks so that it can be said to be embeddedness in a relational form, this habit occurs when the perpetrator sees an opportunity to carry out economic action in Jorong Sungai Tarab, Kec. Sungai Tarab.

Response of Small Traders in Traditional Markets to the Iman Portal Innovation in Avoiding Usury

Research on the Response of Small Traders in Traditional Markets to the Empowerment Innovation Portal Iman was carried out in Karanganyar from August to September 2023. This research aims to determine the response of small traders in traditional markets who were given socialization about Portal Iman, an empowerment innovation to avoid danger. usury. Qualitative and quantitative research was carried out in an integrated manner with surveys using questionnaires, interviews and field observations. All 92 recitation participants from 5 markets, namely Bejen, Jungke, Nglano, Jaten and Palur markets, were used as respondents for the socialization. The research results showed that the socialization participants were dominated by women (72.83%) compared to men (27.17%), with the majority aged 45 - 59 years or pre-elderly (60.87%); aged over 60 years or elderly (21.74%) and only 17.39% were aged 19 – 44 years or adults. The majority of participants' education was high school (SMA/MA/SMK) at 38.04%; Elementary school as much as 29.35% and junior high school as much as 20.65%. There were 5.44% of socialization participants who had not completed elementary school or even attended school and 6.52% who had attained higher education, either a diploma or bachelor's degree. The average length of business is 14.21 years, the longest is 44 years and the shortest is 1 year, with 66.57% own capital and 44.43% with borrowed capital, 36.67% have had contact with loan sharks, 61.11% have no contact and 2.2% did not provide information. Of the 36.6% who had contact with the loan shark, 12.22% were still in contact today, 64.44% were no longer in contact and 33.3% of respondents did not answer.

Pengaruh Sertifikasi Halal terhadap Peningkatan Jumlah Penjualan Produk UMKM (Studi Kasus Kota Binjai)

This research aims to determine the effect of halal certification on increasing the number of sales of Micro, Small and Medium Enterprises products in Binjai City. This research is field research using a quantitative approach. The population is all consumers and producers of micro, small and medium enterprises. The sample was selected using random sampling with a total of 100 respondents. The method used in this research is Quantitative with Simple Linear Regression using Two Variables. The research used is field research, primary data from questionnaires and secondary data from documentation. The population in this study was 100 people and the sample was determined using the Slovin method, namely 100 samples.In this research the author used quantitative research and analyzed it with SPSS 22. Based on the research results, the t test (partial) showed that the training program had a significant effect on increasing income. The calculated t value is 7.353 < t table (7.353 > 0.1660). Based on the regression results, it can be seen that the Needs variable has a calculated t value of 1,839 with a sig of 0.069. This means t count < t table (1,839 > 1,660). The second hypothesis states that the collateral factor has no significant effect on people's interest in borrowing money from loan sharks. Based on the regression results, it can be seen that the collateral variable has a calculated t value of 6.634 with a sig of 0.000. This means t count > t table (6.634 > 1.660). all independent variables (X1 and The R2 test results show that variable X (Independent) has an influence of 31.5% on variable Y (dependent), while the remaining 68.5% is influenced by other variables

The effects of policy interventions to limit illegal money lending

We estimate a structural model of borrowing and lending in the illegal money lending market using a unique panel survey of 1,090 borrowers taking out 11,032 loans from loan sharks. We use the model to evaluate the effects of interventions aimed at limiting this market. We find that an enforcement crackdown that occurred during our sample period increased lenders’ unit cost of harassment and interest rates, while lowering volume of loans, lender profits and borrower welfare. Policies removing borrowers in the middle of the repayment ability distribution, reducing gambling or reducing time discounting are also effective at lowering lender profitability.

The spirit of Islamic economics versus loan sharks: investigating intentions to use loan sharks in Aceh, Indonesia

The spirit of Islamic economics versus loan sharks: investigating intentions to use loan sharks in Aceh, Indonesia

Al-Qarḍ al-Ḥasan Program of Bankziska: Zakat Fund-Based Empowerment Model for Victims of Loan Sharks

This research aimed at analyzing the effectiveness of the Bankziska program in empowering victims of loan sharks through the al-Qarḍ al-Ḥasan contract funded by zakat, administered by the Amil Zakat Infaq and Shadaqah of Muhammadiyah Institutions. Qualitative method was used in this research with a phenomenological approach using the activity data from the Amil Zakat Infaq and Shadaqah of Muhammadiyah Institutions in empowering loan shark victims through the Bankziska program. The data sources were obtained from managers, volunteers, and loan shark victims who were the partners of Bankziska. The research results showed that the reasons for the Amil Zakat Infaq and Shadaqah of Muhammadiyah Institutions to lend zakat funds were the references from fiqh and fatwa, training studies, organizational encouragement, academic input, and it is easy to implement. The implementation of the Bankziska program had detailed standard operating procedures, starting from the beneficiary categories, distribution, and payment processes, to mitigating the risk of default. The al-Qarḍ al-Ḥasan program of Bankziska had an impact on improving the quality of skills, mental, intellectual, technological, communication, and religious studies of managers and volunteers. The impact of the program for partners was the awareness to abandon usury, reduced debt both in nominal terms and the number of loan sharks and an increase in the ethos of economic independence. This research contributes to providing discourse and alternatives for other social and religious fund management institutions in using zakat funds productively for economic empowerment through the al-Qarḍ al-Ḥasan contract for victims of loan sharks who have difficulty accessing Sharia financial institutions to obtain business capital or financing services.

SOSIALISASI LITERASI DAN LEMBAGA KEUANGAN SYARIAH PADA MASYARAKAT DESA SUKABUNGAH

This community service activity aims to educate the public about sharia finance. The main target of this sharia financial literacy socialization activity is the community in Sukabungah Village, Bojongmangu District, Bekasi Regency. The activities were carried out in the form of seminars by the community service implementation team at Islamic University 45 Bekasi. from the results of observations and interviews, the existence of Bank Emok (Lentenir) in Sukabungah Village still exists today, this is proven by the fact that 60% of the community is ensnared by loan sharks and even online loans (pinjol) this occurs because of the lack of understanding of the people of Sukabungah Village regarding sharia finance. . Therefore, in Community Service activities, the service team plans to carry out outreach through seminars related to sharia finance. After holding sharia finance socialization activities through seminars, the Sukabungah village community gained new knowledge about sharia finance, thereby increasing knowledge and information about sharia finance, managing and managing finances well and being aware of the negative effects of using loan sharks and interest-bearing loans.

ANALISIS PERAN KOPERASI SYARIAH BAGI MASYARAKAT

This research aims to determine the role of sharia cooperatives in improving welfare and the mechanism for distributing productive financing to the community, especially traders around the Medan Tasbih Complex. The research method used is descriptive analytical research using data collection through field observation, interviews and documentation. The results of this research show that the BMT Al-Musabbihin sharia cooperative has provided many benefits for the community to gain prosperity and be free from the detrimental practice of usury and reduce the dependence of small traders from financial institutions on conventional banks and loan sharks. The BMT AL Musabbihin sharia cooperative has played a role in providing business credit to increase business capital through savings and loan credit, namely providing investment capital to its members, especially among Small and Medium Enterprise (SME).

Analisis Komparatif Tingkat Literasi Keuangan dan Prilaku Pengelolaan Keuangan pada Nasabah Bank Emok dan Bank BRI Unit Tanjung Jaya di Desa Sukaratu Kec.Cilebar Kab. Karawang

The financial sector, especially banking, is considered a pillar of economic growth and national stability which plays an important role in improving people's living standards by collecting funds from them to support national development. However, limited access to formal financial institutions encourages people to seek loans from non-formal institutions such as Bank Emok. BRI Bank is also an option, but complex administrative procedures and fear of difficult requirements are obstacles. Most people prefer loans from Emok Bank or loan sharks. The majority of the people of Sukaratu Village work as agricultural laborers to meet their living needs, but the people of Sukaratu Village need more money to improve their standard of living, such as business capital and educational needs. Therefore, improving financial literacy and financial management behavior is essential to help people overcome economic problems and improve their standard of living. This research aims to conduct a comparative analysis regarding the level of financial literacy and financial management behavior between customers of Bank Emok and Bank BRI Tanjung Jaya Unit in Sukaratu Village, Cilebar District, Karawang Regency. The data analysis method used is quantitative research and uses a quantitative descriptive research method design: comparative study. The sample used in this research was 69 Bank Emok customers and 65 Bank BRI Tanjung Jaya Unit customers, respondents who had loans at the bank. This research uses sample Independent T Tast Test analysis, which is a statistical test used to test the average difference between two unpaired variables, based on the sample Independent T Tast Test carried out on customers of Bank Emok and Bank BRI Tanjung Jaya Unit, the results of t -test for Equality of Means Sig value. (2-tailed) greater than 0.05. shows that there is no significant difference between the average level of financial literacy and financial management behavior of Bank Emok and Bank BRI Tanjung Jaya Unit customers. Keywords: BRI Bank Tanjung Jaya Unit Customers, Emok Bank Customers, Financial Literacy, Financial Management Behavior.

THE INDONESIAN SHARIA BANK PLAYS A CRUCIAL ROLE IN SUPPORTING THE SHARIA ECONOMIC COMMUNITY PROGRAM IN TIRTANADI VILLAGE

This article discusses the MES organization together with the government and Bank Syariah Indonesia launching the MES program, namely rose mas in NTB with the aim of growing the community's economy and eradicating mosque-based loan sharks. This type of research uses descriptive qualitative research, which is classified as field research. The data collection techniques used in this research are observation, interviews and documentation techniques. Data analysis techniques use stages of data reduction, data presentation and data verification. The results of this research show that Bank Syariah Indonesia together with the MES Program is able to build a quality economy by increasing economic growth rates by opening employment opportunities by offering businesses from the capital provided by Bank Syariah Indonesia through the MES program implemented in Dasan Gerung, Tirtanadi Village to reduce unemployment rates and by The implementation of the MES program can reduce users of loan shark services in Dasan Gerung, Tirtanadi Village.

Analysis of Small Traders' Preferences When Deciding to Owe Loans Using Behavioral Planning Theory

Objective: The aim of this research is to analyze the factors that influence small traders' decisions in borrowing money from loan sharks. Method: This research uses Behavioral Planning Theory (TPB) as a quantitative analysis framework. Results and Discussion: The results of data processing show that the financial behavior of small traders is influenced by factors such as ease of loans, disbursement without time constraints, social communication, payment flexibility, and other social dimensions. The research results provide insight into the complex dynamics of small traders' financial behavior and provide a basis for finding relevant and sustainable solutions in increasing fairer financial access at the community level. Research Implications: This research investigates the financial behavior of small traders who interact with moneylenders in the context of communal finance. Amid intense market competition, small traders face financial differentiation, creating complexity in their financial behavior. Limited access to finance and the complex role of moneylenders makes it difficult for small traders to manage debt. Originality/Value: This research can help design better policies to support the economic sustainability of small traders and overcome the financial challenges they face.

Rose Gold Financing Analysis to Reduce Community Dependence on Moneylender Services (Case Study of the Nurul Ikhsan Lengaluh Mosque)

This research was motivated by the phenomenon of loan sharks which is often found in society today, then the NTB government provided a solution to reduce people's dependence on loan shark services by channeling financing using qardh contracts using the concept of mosque-based empowerment. This research aims to find out the impact of Mawar Emas financing with the mosque empowerment concept provided by the government to the community to minimize their dependence on moneylenders. In using the writing method, the researcher used a qualitative and descriptive method with a phenomenological approach. The data collection techniques used were observation, interviews, questionnaires and documentation. Data processing is carried out by selecting and sorting data obtained through observation, interviews, questionnaires and documentation, presenting all the selected data and then analyzing it and producing conclusions. Based on the results of research conducted by researchers, it shows that the Mawar Emas financing program to minimize community dependency on loan shark services at the Nurul Ikhsan Lengaluh Mosque has not been completely able to free customers from loan shark services, however the community feels empowered by the business assistance provided by the Mawar financing program. Gold.

Pelatihan Literasi Keuangan: Cermat Meminjam dan Menabung

This service activity aims to provide an understanding of financial literacy (careful borrowing and saving) so that it is hoped that participants can avoid loan sharks. Apart from that, participants are given knowledge about making simple financial reports so that expenses do not exceed income. This service was carried out at the Women's Farmers Group (KWT) in Pagelaran Village, Pringsewu Regency. The service method used is material presentation and discussion. The results of this activity were that the participants generally understood how to choose the right borrowing and saving as well as calculating the size of the costs of borrowing, although there were some participants who had a little difficulty in reading and writing.

Faktor Faktor Yang Mempengaruhi Pedagang Muslim Melakukan Kredit Pada Peminjaman Modal Perorangan Di Kota Jambi

This research was conducted to see whether there are factors that influence Muslim traders in providing credit to individual capital borrowers in Jambi City (handil capital market case study). Economic activity is one of the activities that is allowed to improve people's standard of living, especially traders. Trade is an activity carried out by people throughout the world, from trading in primary needs to luxury goods. Not only that, trading was also one of the business ventures carried out by the Prophet. From an economic perspective, the market is a place where sellers and buyers meet to determine an agreement on the price of exchanging goods or services. Markets are also social constructs because economic resources, namely goods and services, are allocated there. It is exchange and trading activities that build markets. In other words, there would be no trade without a market, and a market would not exist if there were no trade. The most basic thing in the trading process is social interaction. This interaction gives birth to norms and sanctions just like the beginning of the formation of society, where the role of all actors is very important. There will be no traders without buyers, and vice versa, and there will be no market without both parties. However, not only these two perpetrators, there are still other parties who are called loan sharks.

Local Economic Development through Potato Development Areas in Karamatwangi Village, Cisurupan District, Garut Regency.

Karamatwangi Village is one of the villages that implements local economic development to improve community welfare. In the implementation of local economic development through the Kawasan Pengembangan Kentang, there is a problem that the extent of cooperation has not been established which has an impact on the income of farm laborers, this has caused farm laborers to be in debt because they borrow money from local illegal banks (money lender). This study aims to describe an overview of: (1) partnerships, (2) employment opportunities, and (3) increased economic activity to find out how the Kawasan Pengembangan Kentangcan be beneficial for increasing the income of farm laborers in Karamatwangi Village. This research uses a qualitative descriptive method. Data sources used purposive sampling techniques to determine seven informants consisting of the Karamatwangi Village Government, Hutani Village Community Institution (LMDH), business actors, and farm laborers. Data collection techniques used are in-depth interviews, observation and documentation studies. The results showed that: (1) Kawasan Pengembangan Kentang activities have involved the active participation of the Karamatwangi Village community, (2) there are employment opportunities opened by the Kawasan Pengembangan Kentang, (3) there is an increase in skills obtained by farm laborers from the Kawasan Pengembangan Kentang. In the implementation of the Potato Development Area, there are obstacles related to the lack of increased income for farm laborers. This is because of no increase in the quality or quantity of potatoes produced, and the sale of potatoes still depends on loan shark where the expansion of cooperation carried out by the Kawasan Pengembangan Kentanghas not been widely opened. The lack of expansion of cooperation has an impact on increasing the income of farm laborers who currently farm laborers in Karamatwangi Village still have difficulty meeting their daily needs and causing some farm laborers to be in debt to money lending services, namely emok banks (local illegal banks.) The Masyarakat Mandiri Terampil Sejahtera Program (MARITERA) is designed as an effort to empower farm workers in order to increase their daily income and branding of the Kawasan Pengembangan Kentang in order to create an expansion of cooperation between potential partners.

Enhancement of Financial Management of MSMEs in Cilawu District to Support the Halal Ecosystem

Most of the small traders in Cilawu District, Garut, are trapped by loan sharks. It happens due to their limited literacy and legal sources of capital. Those traders do not seem to have taken advantage of the loans offered by Sharia Banks since it takes effort and time for them to gain confidence in Sharia financial service products. This study concludes that the enhancement of the ability of UMKM financial management in Cilawu District to support the halal ecosystem is to increase the literacy of small traders in financial management, from planning to preparing financial reports, as the level of financial literacy of traders is still low and they do not have confidence in financial service institutions and financial service products. In addition, the provision of literacy in Islamic financial institutions and their financial products and services for traders is necessary since it can directly boost the activities of Islamic financial institutions and contribute to the development of the halal ecosystem.

Enhancement of Financial Management of MSMEs in Cilawu District to Support the Halal Ecosystem

Most of the small traders in Cilawu District, Garut, are trapped by loan sharks. It happens due to their limited literacy and legal sources of capital. Those traders do not seem to have taken advantage of the loans offered by Sharia Banks since it takes effort and time for them to gain confidence in Sharia financial service products. This study concludes that the enhancement of the ability of UMKM financial management in Cilawu District to support the halal ecosystem is to increase the literacy of small traders in financial management, from planning to preparing financial reports, as the level of financial literacy of traders is still low and they do not have confidence in financial service institutions and financial service products. In addition, the provision of literacy in Islamic financial institutions and their financial products and services for traders is necessary since it can directly boost the activities of Islamic financial institutions and contribute to the development of the halal ecosystem.

Infrabanking: Mobilizing capital in communist Cuba

AbstractIn 2011, the Cuban government authorized banks to start offering loan credit to the country's growing number of small businesses for the first time since the beginning of the revolution. Yet in the following years, citizens have largely circumvented these services. This article draws on twenty months of fieldwork among market traders in Havana to examine why so few Cubans rely on the formal banking system to secure capital. It analyzes alternative methods people employ to organize their financial futures, by leveraging kinship ties, partnerships, friendships, property, and loan sharks, and by participating in rotating savings and credit associations. To understand the advantages these approaches offer to mobilize capital, it is crucial to grasp how people navigate their economic lives in ways that are influenced but not dictated by short‐term considerations of net profit. Nonmonetary concerns about access, time frame, and visibility lead people to raise and store wealth outside the formal banking system, constituting a domain I call infrabanking: banking practices that are too far removed from the established assumptions about banking to be perceived as part of the same phenomenon.

Model Sinergitas Antar Lembaga Dalam Pengelolaan Zakat Bagi Mustahiq Pedagang Kaki Lima (PKL)

In the business world, we are known as Street Vendors (PKL). Street vendors, of course, need capital, but working capital funds are very limited, so there is a possibility of borrowing funds using a payment system that contains usury or better known as loan sharks. In relation to the above, the term productive zakat emerged so that it can provide long-term impact and beneficial value to the zakat mustahiq, including street vendors.). Using qualitative methods with an analytical descriptive approach. The collection technique in this research is literature study, this is done by collecting relevant or appropriate data needed for research. The target of this research is the existence of contemporary Sharia Economic Law and its relevance in Indonesia. The results of the study show a synergistic zakat management model, involving several institutions in empowering mustahiq street vendors. Integrative and collaborative steps of the Adaptation, Goal Attainment, Integration and Latency (AGIL) model. In the corridor of synergy between BAZNAS and the Ministry Of Social Affairs, Ministry Of Trade, Ministry Of Education And Cultural, Ministry Of Cooperative Small Micro anda Medium Enterprise, The Universities and Islamic Youth Organizations which support the synergy of empowering mustahiq street vendors. This model of synergy between institutions in managing zakat can form a mustahiq who can be self-empowered and change his fate out of poverty.

A decentralised KYC based approach for microfinance using blockchain technology

• The proposed lending model eliminates the middle parties like banks in the loan process. It decreases the time taken to a great extent. • The proposed decentralised KYC model eliminates a lot of human interaction in the process of KYC verification. It restricts the submission of one's documents in multiple organizations, which has a high risk of data bleaching if those organizations compromise the security systems. • As every transaction will be stored in a blockchain and are resistant to modification, neither of the parties can default on any transaction. Financial inclusion is seen as a dynamic tool for achieving multifaceted microeconomic stability, (and) sustainable economic growth, job creation, poverty reduction, and income equality for both developed and developing nations. The needy segments of the population must be provided with financial services to accomplish this inclusion. Still, the traditional financial market is unavailable due to its lack of collateral and shallow income. Thus, they go to local moneylenders, also known as "loan sharks," who charge exorbitant interest rates. Introduction to microfinance came as a new and refreshing light to these needy segments of the population as it provides small valued loans (micro-credit) to support their micro-scale businesses and engage in productive activities. As emerging technology started to be incorporated into every aspect of society, thus microfinance also needed to be incorporated into the technology. An application is required to protect data integrity and smoothly influence the microfinance sector. As the databases are vulnerable to data manipulation, this can affect the transaction history of the loan. Blockchain technology can be used to solve this problem, as data in the Blockchain is stored immutably. So, we designed a microfinance application that uses blockchain technology with decentralised KYC architecture to reduce multiple KYC verification and easy access to micro-credit.