Legal Awareness of The Muslim Community Regarding Debt Agreements With Bank Tungul

Abstract

Lending and borrowing agreements that contain high interest often occur in the general public, especially Muslims today. One of them is the loan agreement with Bank Tungul, which incidentally contains high interest. In addition to debts under Islamic law, it is clear that the law is unlawful because there is an element of usury in it, as emphasized in QS. Al-Baqarah verse 275. However, in society, such practices are still practiced and considered normal by the
Muslim community. The research method used is empirical juridical research with a sociological approach. The purpose of this study was to analyze the legal awareness of the people in the debt agreement made with Bank Tungul and to find out the factors that influence the community in carrying out debts and receivables with Bank Tungul. The results of the study show that the legal awareness of the people of Kebumen Village in the loan agreement with Bank Tungul is low. The community does not yet have extensive knowledge and understanding of the prohibition of usury, especially in debt transactions, so their attitudes and behavior when making loans do not consider the loan's interest. The factors influencing the people carrying out debts and receivables with Bank Tungul include educational, religious, social, and economic factors and the ease of transactions. This research can be a reference in increasing legal awareness related to the problems arising from debts that contain usury.