Looking at Sharia P2P Fintech from a Legal Perspective

Currently, digital-based funding systems are increasingly present in society. This is because digital-based funding is considered easy and practical where borrowers can process their transactions online by preparing requirements by applicable regulations. One of the online funding schemes is Sharia P2P Lending Fintech.

Sharia Fintech P2P Lending is a digital funding platform that connects lenders with borrowers who refer to the principles of Islamic law so that the implementation of these activities is free from elements of Riba, Gharar, fraud, and other prohibited things according to Islamic law. In principle, Sharia P2P lending fintech is the same as other funding fintech, but in practice, Sharia P2P lending fintech refers to the principles of Islamic law.

Sharia fintech offers Sharia-based online financing without collateral and offers profit with a profit-sharing system. As of July 2021, there are 9 (nine) Sharia fintech lending providers with total assets reaching 107.3 billion rupiah and total liabilities reaching 50.54 billion rupiahs. Sharia P2P lending has succeeded in becoming alternative financing for business actors, communities, and millennials who are saturated with the conventional system.

Legal Basis of P2P Lending

The legal basis for lending and borrowing is regulated in Chapter XIII Book III of the Civil Code. Some articles that regulate lending and borrowing include Article 1754 of the Civil Code, Article 1759 of the Civil Code, Article 1763 of the Civil Code, and Article 1764 of the Civil Code. Article 1754 of the Civil Code states that: "Lending and borrowing is an agreement, which determines the first party to hand over several goods that can be used up to the second party on the condition that the second party will return similar goods to the first party in the same amount and condition".

The legal basis regarding fintech funding refers to the Financial Services Authority Regulation (POJK) Nomor 10 /POJK.05/2022 concerning Information Technology-Based Joint Funding Services. The regulation regulates every type of fintech in general, both Sharia funding fintech and conventional funding fintech.

However, Sharia P2P Fintech refers to the rules made by Bank Indonesia, the Financial Services Authority, and the Indonesian Ulema Council in the National Sharia Council (DSN) Fatwa Number 117/DSN-MUI/II/2018, regarding Information Technology Based Financing Services Based on Sharia Principles.

Akad (Contract) in Sharia Fintech

There are 6 types of contracts allowed in sharia fintech, including the following:

Al-bai' (Sale and purchase)

Sale and purchase is an agreement between the seller and the buyer that results in the transfer of the object being traded from the seller to the buyer. In Islam, if buying and selling is done without a contract, the trading activity is considered invalid.

Ijarah (Lease)

Ijarah is a leasing activity with a fee that has been determined by both parties. Ijarah can also be interpreted as an agreement that aims to transfer the right to use an item during the ijarah period with the payment of rental fees as specified.

Mudharabah

Is a contract of cooperation in a business between the owner of the capital and the manager where the profit is divided according to the agreed portion.

Musyarakah

A cooperation agreement between two or more parties in which each contributes funds, and the profits are shared fairly for each party.

Wakalah bi al ujrah

A contract of delegation of power by the authorizer to the authorizer to perform certain legal actions accompanied by a reward or ujrah.

Qardh

Is a contract between the lender and the recipient of the loan with the provision that the loan money must be returned by the agreed time and manner.

 

P2P Syariah is an Islamic Sharia-based financial service that prioritizes the agreement of both parties by applicable rules and laws based on the MUI fatwa. For those of you who plan to take a loan, you can choose a Sharia-based funding service at an ethical funding service, which is certainly trusted and legally legal.