Micro Credit-Qard Hasan Financing Mechanism Through Zakat Funding By Baznas Indonesia

Abstract

The concept of qard hasan is an instrument in Islamic economics that emphasizes welfare aspects in its implementation. The concept of qard hasan has been developed into a zakat instrument and has been practiced by several modern Muslim countries, including the country with the largest number of Muslims, Indonesia. This study aimed to explore the implementation mechanism of micro credit-qarḍ ḥasan financing through zakat fund by the National Amil Zakat Agency (BAZNAS) of Indonesia. This study used a qualitative approach involving a literature review of related books and journals. The materials obtained were analyzed using the document analysis method. The results of the study show BAZNAZ has a comprehensive mechanism in the implementation of micro credit-qarḍ ḥasan financing through zakat fund, which includes the receipt of application letters, evaluation of eligibility, sectors worked by asnaf entrepreneurs, application debate, grant of funds, and also monitoring. Thus, it was found that this initiative not only helps asnaf entrepreneurs get capital to start and continue the business, but it is also able to save asnaf entrepreneurs from getting involved in usurious loans, improving the economy of small and medium entrepreneurs. The study found that BAZNAZ also faced several risks to the loans, including applicants falsifying documents, borrowers not paying debt, and business being closed. This study also found that the micro credit-qarḍ ḥasan financing through zakat fund is Sharia compliant and certified by many modern scholars such as al-Qaradawi.