Pegadaian's Sharia KUR: A Solution for Interest-Free Business Capital Loans
For business actors, an injection of fresh funds is often the main determinant of whether a business can continue to grow. However, the biggest dilemma when seeking business capital loans from financing institutions is the worry about high interest rates or the obligation to provide collateral. The good news is that credit service schemes have now transformed to become much more inclusive and easily accessible to anyone, such as the Sharia KUR at Pegadaian.
Pegadaian’s Sharia KUR is a financing programme provided to MSMEs that are categorised as unbankable. The programme, which carries the mission of supporting the economic growth of the people, is implemented based on sharia principles that eliminate the conventional interest system. In practice, the Sharia KUR at Pegadaian uses a Rahn (sharia pawn) contract and applies an affordable mu’nah (maintenance fee).
Other advantages offered by the Sharia KUR service at Pegadaian include compliance with the fatwa of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI), fast disbursement of funds, no requirement for collateral, easy transactions at all Pegadaian outlets, and no administrative fees. The presence of Sharia KUR is an ideal means for MSMEs who wish to obtain additional funds to scale up their businesses with a halal and legal scheme.
To apply for Sharia KUR at Pegadaian, customers must meet several requirements. These include submitting an ID card (KTP), family card (KK), marriage certificate (if married), and a certificate of domicile if the address differs from the KTP. Applicants must also have a permanent residence proven by land and building tax records or a certificate of ownership, a Business Identification Number (NIB) or business permit, and a photocopy of an electricity, water, or telephone bill. The terms stipulate that applicants must be between 17 and 65 years old at the time the contract matures, have a regular daily, weekly, or monthly income, and run a business that is legitimate according to Islamic law and state regulations. A credit history check is mandatory, and the applicant must not be a civil servant, soldier, or police officer. The business location must also be within a maximum radius of 5 kilometres from the organising micro outlet.
The application process involves the customer submitting the application and required documents, followed by data and file verification by the Pegadaian team. A field survey is then conducted by an officer, after which the loan amount is confirmed and the contract is signed. Finally, the loan funds are disbursed, and the customer pays instalments according to the due date. With support from more than 4,000 outlets across Indonesia, access to Sharia KUR is increasingly easy and practical.