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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 A Halim Abdul Kahar Ade Gunawan Ade Irma Suryani Ade Irma Suryani Agus Sastrawan Noor Ahyar, Muh. Akhriana, Asmah Al-Fajri, Muhammad Alauddin, Murni Ratna sari Alvansuri, Maulfi Amaliah, Asma Arif Hidayat Asmalinda, Wita Asriyadi Asriyadi Aulia, Intan Zahra Babby Hasmayni Chayati, Nurul Dani Anggoro dedi irawan Defriko Gusma Putra Dewi, Dyah Handayani Dewi, Lizabeth Sari Dewi, Suci Kumala Dharma, Bertia Arya Dwi Pratiwi DWI RAHMAWATI Edy Sapada Eka Prasetya Adhy Sugara Etik Winarni, Etik Fajriansih, Andi Faradilla Herlin Farlina, Meidia Fauzi, Mochamad Ryan Ferniawan, Ferniawan Fiddina Rama Syaajida Fina Amalia Masri Fitria Fatayana, Nurfadilah Guntari, Putri Suci Hario Tamtomo Haris, Andian Harmadi, Ashur Hendri Tamara Yuda Hierdawati, Trie Ika Dwimaya Roza Indah, Cahaya Indahsari, Vicky Nur Ira Vahlia Irmanelly, Irmanelly Ismail Ismail Ismail, Lukman Isnanto , Hafizh Jofilla, Sella Juleha Juleha, Juleha K.S Siregar, Guna Yanti Kurnia, Dwi L, Muhammad Hadeli La Ndia, La Ndia Lestari, Ida Ayu Indira Dwika Lorwens, Fhirna Angelich Christy Lukman, Musfirah Putri M, Usman M. Sukarno Maemuna Muhayyang Mainita, Mainita Malinda, Selly Nur Maliudin, Maliudin Mamisa, Yuli Yana Martinihani, Martinihani Mohammad Iqbal Irfany Monika, Rahma Ms. Rasiah, Ms. Muhammad Al-fajri, Muhammad Al-fajri Muhammad Febriansyah Muhammad Haekal Yunus Muhammad Riski Muhammad Sultan, Muhammad Muhammad Takdir, Muhammad Muhammad Thamrin Basri Muhira Dzar Faraby, Muhira Dzar Mukhlisin Mukhlisin Munir Munir, Munir Neneng Hasanah Nezha Salwa Novia Damayanti Nur Hidayah Nurhanurawati Nurhanurawati Nurhayati Nurhayati Nurjannah Nurjannah Nursamsir Perwira, Haris Piety, Adinda Maharani Prabowo, Danang Prasetya, Bayu Pratiwi, Maissy Prayogo, Dimas Pandu Pujianto Pujianto Putra, Iwan Eka Rafly, Muhammad Rahayu, Linda Rahmad Bustanul Anwar Rahmati, Ika RAHMI, ELVI Ramdan, Iwan Muhammad Ratih Rosita Ravi Nursetiadi Renaldi Primaswara Prasetya Rezki.HS, Nur Fitriani Rizky, Divy Anugerah Rulhendri Rulhendri Sabyan, M Sam Hermansyah Sani, Zulqarnain Nur Saputra, Deri Gilang Saputra, Rizki Hermawan Sardjana Orba Manullang Sari, Meli Eka Sari, Yolanda Sejati, Hario Sentot Achmadi Septihadi, Andre Setiawan, Hendri Indra Sirad, Mochammad Apriyadi Hadi Sirait, Robinson Siregar, Guna Yanti K.S Sofian, Nur Israfyan Sofyan Hadi sofyan sofyan Sonita, Anisya Suarnianti, Suarnianti SUDARMAJI SUDARMAJI Sugiarti, Amrih Suhar, Suhar Sumiati Sumiati Suradi, Ahmad Suzalin, Ferawati Sy., Arniwita Syamruddin, Syamruddin Tanahatu, Dandi Gustria Thaha, Sarma Tina Yunarti Trikurniasih, Endah Umi Hartati, Umi valentina, Mariana febri Veronica, Deka Wahyuddin Wahyuddin Wahyudin, Amri Reza Wiarta, Iqra Wiratmaka, Caesar Sabilla Wulandari, Novi Wulandari Yuli Asmi Rahman Yuniarti Yuniarti Zahari, Muhammad