Riba in Online Lending Practice: An Analysis of Islamic Law and Sharia Financial Literacy Awareness in the Era of Digital Technology

Abstract

This study aims to analyze online lending practices from the perspective of Islamic law and to examine the urgency of Islamic financial literacy in the digital era. The research is motivated by the rapid growth of online lending services that frequently generate serious problems, including high interest rates, aggressive and inhumane debt collection practices, and violations of personal data privacy. From the standpoint of Islamic jurisprudence, these practices inherently contain elements of riba (usury), gharar (uncertainty), and zulm (injustice), which contradict the fundamental principles of Islamic economic transactions. This study employs a library research method with a normative-juridical and fiqh muʿāmalah approach, integrating Islamic legal doctrines, relevant positive regulations, and the development of financial technology. Data are obtained from primary sources such as the Qur’an, Hadith, DSN-MUI fatwas, and statutory regulations, as well as secondary sources including scholarly books and peer-reviewed journals. The data are analyzed using a qualitative-descriptive and deductive framework. The findings indicate that conventional online lending practices are incompatible with Sharia principles due to their interest-based mechanisms, whereas Islamic fintech provides viable alternatives through Sharia-compliant contracts such as mudharabah, musyarakah, and murabahah. The implementation of Islamic fintech under the supervision of the Sharia Supervisory Board and the Financial Services Authority (OJK) is considered capable of promoting justice, transparency, and ethical financing in accordance with Islamic values and the objectives of Islamic law (maqāṣid al-sharīʿah).