<![CDATA[Islamic Microfinance Institutions (IMFIs) play a strategic role in promoting financial inclusion and empowering micro-enterprises through the implementation of Sharia principles. However, the increasing risk of Non-Performing Financing (NPF) poses a significant challenge that may undermine the financial stability and operational sustainability of these institutions. This study aims to analyze the factors contributing to problematic financing and identify effective Sharia-based strategies for its resolution. The study employs a qualitative descriptive literature review by analyzing relevant scholarly articles, books, and policy documents concerning the management of non-performing financing in Islamic microfinance institutions. The findings indicate that the causes of NPF can be classified into internal and external factors. Internal factors include weak financing feasibility assessment, inadequate monitoring, and limited human resource capacity, whereas external factors comprise the instability of customers' business conditions, low levels of financial literacy, and changing economic conditions. The literature further suggests that effective resolution strategies primarily involve financing restructuring through rescheduling, reconditioning, and restructuring, complemented by preventive measures such as comprehensive financing appraisal and Sharia-based approaches emphasizing justice, deliberation (islah), and dispute resolution mechanisms, including rahn (pledge) and tahkim (arbitration). The study concludes that integrating risk management practices with Sharia principles is effective not only in mitigating the risk of non-performing financing but also in strengthening public trust and supporting the long-term sustainability of Islamic Microfinance Institutions.]]>
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