Online loans platforms, widely known as pinjol, have evolved from a technological innovation into a complex social reality. While their ease of access offers quick financial relief, they also carry the risk of entangling users in prohibited financial practices under Islamic law.
In response to growing public concern, the Council for Religious Opinion and Reform of Muhammadiyah Central Board has issued comprehensive guidance to help Muslims navigate this issue.
From a jurisprudential perspective, online loans represents a contemporary form of the qardh (loan) contract. Islam does not forbid borrowing and lending. On the contrary, it is considered a permissible form of mutual assistance. The Qur’an clearly states in Surah Al-Baqarah:
يَأَيُّهَا الَّذِينَ ءَامَنُوا إِذَا تَدَايَنتُم بِدَيْنٍ إِلَى أَجَلٍ مُّسَمًّى فَأَكْتُبُوهُ
“O you who believe, when you contract a debt for a specified term, write it down…” (Surah Al-Baqarah 2:282)
In this context, digital platforms serve merely as intermediaries and do not alter the fundamental permissibility of the transaction—so long as no prohibited elements are involved.
Interest as the Core Issue
The primary factor that renders most online loans practices impermissible is not the technology itself, but the presence of interest. According to Muhammadiyah’s legal opinion, such interest constitutes riba, defined as an unjustified increase over the principal without equivalent compensation in goods or services.
The prohibition is unequivocal in the Qur’an:
…. وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبوا …
“…God has permitted trade and forbidden riba…” (Surah Al-Baqarah 2:275)
Moreover, the Prophet Muhammad classified riba among the seven gravest sins (al-mubiqat), as recorded in a hadith:
اجْتَنِبُوا السَّبْعَ المُوبِقَاتِ … قَالَ الشَّرْكُ بِاللَّه وَالسِّحْرُ وَقَتْلُ النَّفْسِ الَّتِي حَرَّمَ اللَّهُ إِلَّا بِالْحَقِّ وَأَكُلُ مَالِ اليَتِيمِ وَأَكْلُ الرِّبَا وَالتَّوَلِّي يَوْمَ الرَّحْفِ وَقَذْفِ الْمُحْصَنَاتِ الغَافِلَاتِ الْمُؤْمِنَاتِ
“Avoid the seven destructive sins… associating partners with God, practicing sorcery, killing unlawfully, consuming the property of orphans, consuming riba, fleeing from battle, and slandering chaste believing women.” (Reported by Muslim No. 145)
Legal Status vs. Religious Compliance
Importantly, licensing from institutions such as Otoritas Jasa Keuangan (OJK) and the Asosiasi Fintech Pendanaan Bersama Indonesia (AFPI) ensures regulatory compliance and consumer protection. However, it does not automatically guarantee compliance with Islamic law. Many legally registered platforms still apply interest-based systems.
Therefore, the public is urged to exercise caution and consider Sharia-compliant alternatives. These platforms typically employ contracts such as wadiah (safekeeping), mudarabah (profit-sharing), or musyarakah (partnership). Examples of such services registered with OJK include Dana Syariah, Alami Sharia, and Ethis Indonesia.
Toward Ethical and Sustainable Solutions
As both a preventive and constructive measure, Muhammadiyah encourages strengthening institutions like Lazismu to support gharimin—individuals burdened by debt due to essential needs.
Ultimately, financial literacy and adherence to Islamic principles remain the most effective safeguards. Without them, individuals risk falling into cycles of debt that can have lasting personal and social consequences.
Reference:
The Council for Religious Opinion and Reform of Muhammadiyah Central Board, “Hukum Pinjaman Online (Pinjol)”, Suara Muhammadiyah, Januari 2023.
