Sharia Pawn Mechanism (Rahn) at BMT-UGT Sidogiri

Abstract

This study aims to determine the contract used by BMT-UGT Sidogiri in running a sharia pawnshop business (rahn). By using the descriptive method with the approach. The findings of this study are based on the Sharia Pawn (Rahn) mechanism in Baitul Maal Wa Tamwil BMT-UGT Sidogiri Capem Kepanjen), First, the pawn contracts used are rahn and ijarah contracts. Second, the customer disbursement process will be subject to administrative and ujrah fees. Third, there is a process of determining the loan ceiling that will be given to customers. Fourth, the repayment process applies 2 ways, namely, the installment model and repayment at the 4-month maturity date. Fifth, if there are customers who are unable to pay off loans according to maturity, there are 2 ways of handling them, namely, taking a direct approach to provide settlement solutions and the auction process. Recommendations from this study, first, in achieving the goal of a more optimal BMT following the targets and desires of various parties, BMT should have a gold estimator tool to estimate the price of gold itself. Academic recommendations from this research, there is a need for further research with a wider unit of analysis.