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Journal : Annals of Human Resource Management Research

Factors affecting household debt to moneylenders Mustika, Mustika; Hasanah, Neneng; Irfany, Mohammad Iqbal
Annals of Human Resource Management Research Vol. 3 No. 1 (2023): March
Publisher : Goodwood Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/ahrmr.v3i1.1578

Abstract

Purpose: Moneylenders, sometimes called 'loan sharks' due to their high interest rates, are informal financial institutions that offer loans not in line with Islamic law. This study analyzes the factors that influence the behavior of households regarding debt to moneylenders. Research Methodology: This research employs descriptive and logistic regression analyses using primary data collected from locals in Jagapura village, Cirebon. Result: The results indicate that basic household necessities determine their debt behavior. However, Islamic financial literacy and increasing income present effective solutions for moneylenders to overcome their debt. Limitation: This study is based on primary data from a specific village, Jagapura, in Cirebon, which may not be representative of all households in debt to moneylenders in other regions or settings. Contribution: The study suggests that Islamic financial institutions should assist unbankable communities needing funds for daily expenses by performing social functions such as offering interest-free loans (qardhul hasan) and providing Islamic social finance. The establishment of sharia compliant savings and loans could also be a solution to usury-related issues.
Factors affecting household debt to moneylenders Mustika, Mustika; Hasanah, Neneng; Irfany, Mohammad Iqbal
Annals of Human Resource Management Research Vol. 3 No. 1 (2023): March
Publisher : Goodwood Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/ahrmr.v3i1.1578

Abstract

Purpose: Moneylenders, sometimes called 'loan sharks' due to their high interest rates, are informal financial institutions that offer loans not in line with Islamic law. This study analyzes the factors that influence the behavior of households regarding debt to moneylenders. Research Methodology: This research employs descriptive and logistic regression analyses using primary data collected from locals in Jagapura village, Cirebon. Result: The results indicate that basic household necessities determine their debt behavior. However, Islamic financial literacy and increasing income present effective solutions for moneylenders to overcome their debt. Limitation: This study is based on primary data from a specific village, Jagapura, in Cirebon, which may not be representative of all households in debt to moneylenders in other regions or settings. Contribution: The study suggests that Islamic financial institutions should assist unbankable communities needing funds for daily expenses by performing social functions such as offering interest-free loans (qardhul hasan) and providing Islamic social finance. The establishment of sharia compliant savings and loans could also be a solution to usury-related issues.
Co-Authors Afifah, Tiara Early Afriansyah, Berlian Agus Afandi Agustin, Inka Nadiah Agustina, Santi Ahmad Fikri Ahmad Syukri Aisyah, Tasya Nur Akaputri, Della Erriani AMELIA FEBRIANA, AMELIA Angel Excellen Maharanihalim Anggini, Karlita Arif R, Kasmin Asmawati Asmawati Atikana, Akhirta Azijah, Izattul Azzahra, Amelia Chaniago, Fransisko Dea Aprilia Desriani Desriani Dewi Hasanah Dharmarianti, Dian Putri Dwi Endah Kusumawati Dzikri, Mohd. Iqbal Edi Saputra Edy Kusnadi Ekafitrianda, J. M. Eko Prabowo, Eko Endri Purnomo Fadhilah Fatwanti, Devi Fauzi, Ikbar Fitri, Resfa Fitria Sari Fitriah, Aidatil Fitriani, Eva Fitriyah Fitriyah Fitriyatustany, Fitriyatustany Galantika, Adinda Evan Geulista Hamzah Haq, Daffa Aqomal Hardjanto Haryanti, Ely Hasan, Afrizal Hasanah, Qoriatul Hendra Hendra Herawati, Ita Hermelinda, Tuti Ilham, Hadiid Ushama indriyani, jihan Putri Ismail Fahri Isnarayani, Yuni Jessica, Melia Kasful Anwar Lestari, Neneng Dini Indah Lina Herlina M Solehah, Siti M. Syahran Jailani Mahyuzar Rahman Maisah Maisah MARIA BINTANG Mawarni, Endang Siti Miftahul Huda Miftahul Jannah Mohammad Iqbal Irfany Muhajir Muhajir, Muhajir Muhammadi, Acep Muwahid Mulyorini Rahayuningsih Mustika Mustika Muthohharoh, Marhamah Mutmainah, Dhea Nadhifah, Hana NANIK RAHMANI Napisah Napisah, Napisah Nawang Sari, Dewi Neni, Neni Niarti, Upi Nofantoro, Dwi Nugroho, Sindunata Nur Halimah Nurhaeni Nursaleha, Ervina Priyanto, Anindia Meil Purba, Elvrida Triana BR PUSPITA LISDIYANTI Putri, Dwi Angraeni Putri, Narti Eka Putri, Uly Anggraeni Rahmalia, Desi Ramadhan, Mustarim Ramadini, Kintan Nur Randi Tamirano Rasidin Restiyani, Destika Riana Rizky, Riana Risthi, Alyssa Rosa, Tina Salahuddin Salahuddin Sanusi, Anisa Sarah Salsabila Sarfilianty Anggiani, Sarfilianty Sari, Citra Atrina Sari, Dewi Nawang SHANTI RATNAKOMALA Shibghotillah, Nur Sihite, Debby Alfani Siradju, Diva Athaya Fairuz Siswani, Sri Siti Nurfadilah Siti Zubaidah Sofran, Sidorus Alfandrianus Su'ud, Su'ud SUDARMONO SUDARMONO Sugeng, Andry Suhartini, Titik Sulistyowati, Yeny Suparman, Alviani Sutihat, Ihat Syamsul Falah Thontawi, M Velani, Intan Tunandha Widiyati, Dian Widoyono, Agil Wiwit Amrinola Yani, Shevi Yatmi, Wanda Tri Yeni Nuraeni, Yeni Yulandari, Sri Zenabia, Tsarina Zulqarnin, Zulqarnin