The Perspective of Islamic law on the System of Borrowing Money with Land as Collateral (sande) in South Bengkulu Regency

Abstract

This study examines the practice of borrowing money with land as collateral (Sande) in South Bengkulu Regency from the perspective of Islamic law. The practice, rooted in local tradition, offers a quick and accessible means for individuals to address urgent financial needs without engaging with conventional financial institutions. The Sande system is characterized by mutual agreement between the pledgor and the pledgee, involving land as a pledged asset for the loan. While generally aligned with Islamic legal principles, such as honesty, transparency, and fairness in transactions, some practices raise concerns, particularly when the pledgee’s benefits exceed the value of the collateral, challenging the ethical boundaries of the agreement.