About online loans according to Islam
Muslim Creed - I am a young man from Indonesia, I once asked about a Muslim borrowing money but not through a financial institution, but through a loan application, or often called an online loan? What's the law?
Then the ustadz replied that Allah SubhanahuWaTa'ala explained about the loan or debt that was actually a form of muamalah,
In Islam, loans are allowed because everyone at any time, they are not able to do the financing independently
So there are times when we are in need of money or there are needs that need to be met, then we have to make a loan.
Of course debts in Islam are not in the context of something that is consumptive, because in Islamic teachings, a Muslim is recommended to always be productive, or work that produces.
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If circumstances force us to borrow, then the loan must be in the context of work, not for things that are consumptive in nature because if we follow our desires, or our lust for debt, then what tools follow technological developments such as new gadgets we have to buy with this way of borrowing is certainly not very good. In the end, we follow the trend of the world's currents like we want to always update, but the way is by borrowing.
Then online loans based on data that apply in the country of Indonesia, the provisions in online loan services mean that they are the same as borrowing or borrowing from banks, only the difference is one through financial institutions while online loans, they borrow directly, or meet customers by offering loan.
Usually online loans offer loans with very easy terms, so that we can owe the owner of the loan, such as by sending a photocopy of an ID card or sending an account number. But these online loans contain elements of usury
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Why is it called usury? Because if you read the agreement, there is a rule that if you are late paying then he will be fined
Then there is interest from the total money we borrow, from these two reasons it is clear that something is forbidden in Islam based on the fatwa of the Indonesian Ulama Council regarding interest,
The interest given, or the conditions required by banks or individuals, both individuals and corporations, when lending with interest is clearly unlawful
Likewise, regarding Sharia fintech, we must use fintech services but use fintech based on Sharia, do not use the usury system, we must be careful, we look at the regulations, we must choose wisely, in accordance with the fatwa of the Indonesian Ulama Council.
Hopefully useful, thank you