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Articles

Vol. 1 No. 2 (2026): MARET : MUJAHADAH JURNAL ILMU MULTIDISIPLIN

ANALYSIS OF THE IMPLEMENTATION OF QARDH WAL IJARAH CONTRACTS IN UMRAH BAILOUT FINANCING: A CASE STUDY ON THE MITIGATION OF NON-PERFORMING RECEIVABLES IN ISLAMIC FINANCIAL INSTITUTIONS

Submitted
March 28, 2026
Published
2026-03-03

Abstract

This study aims to analyze the implementation of Qardh wal Ijarah contracts in Umrah bailout financing and to examine their effectiveness in mitigating non-performing receivables in Islamic financial institutions. The increasing demand for Sharia-compliant financial products has encouraged institutions to develop innovative financing schemes, including Umrah bailout services that combine benevolent loans (qardh) and service-based contracts (ijarah). However, the hybrid nature of these contracts raises critical issues related to credit risk, moral hazard, and the potential emergence of non-performing financing. This research employs a qualitative approach using a case study method to obtain an in-depth understanding of contractual practices and risk mitigation strategies. Data were collected through in-depth interviews, document analysis, and observations involving Islamic financial institution officers, Sharia supervisory board members, and customers. The data were analyzed using thematic analysis, supported by triangulation techniques to ensure validity and reliability.

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