<![CDATA[The julo-julo practice in Jorong Gumarang II, Nagari Tigo Koto Silungkang, Agam Regency, is not only used as a communal fund-raising activity, but the collected funds are also lent to members and non-members under the condition of additional payments. This practice raises concerns regarding the conformity of the lending mechanism and profit distribution to participants with the principles of Islamic jurisprudence (fiqh muamalah). This study aims to examine the implementation mechanism of julo-julo and analyze the lending mechanism and profit distribution to participants based on fiqh muamalah. This study employs field research using a descriptive qualitative approach. Primary data were obtained through interviews with the manager and members, observations, and documentation, while secondary data were obtained from the Qur'an, hadith, fiqh muamalah literature, and other relevant scientific sources. The data were analyzed qualitatively through data reduction, data presentation, and conclusion drawing, and were then analyzed based on the principles of qardh contracts and riba. The results show that members who borrow funds are charged an additional 5% per month, while non-members are charged an additional 8% per month until the loan is fully repaid. The additional payments are subsequently distributed to julo-julo participants. Based on fiqh muamalah, the stipulated additional payment constitutes riba qardh because it provides a benefit to the lender through a debt transaction. Therefore, the lending mechanism in the julo-julo practice is not yet in accordance with the principles of the qardh contract. The lending mechanism needs to be improved by eliminating the stipulated additional payment so that the julo-julo practice can continue to operate based on the principles of ta'awun and sharia.]]>
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