APPLICATION OF THE PRECAUTIONARY PRINCIPLE IN PROVIDING CREDIT WITHOUT COLLATERAL AT THE SHARIA MICRO FINANCIAL INSTITUTION (BANK WAKAF MIKRO) KHAS KEMPEK CIREBON

Today, there is a lot of collateral-free financing being offered with the aim of making things easier for the community. Even though it cannot be denied, collateral is one of the 5C analyzes which includes collateral, character, capital, capacity and conditions. Because of this, financing without collateral is an activity that has a very high risk. KHAS Kempek Micro Waqf Bank is a Sharia Microfinance Institution that provides financing without collateral. The problem of this paper is how to apply the principle of prudence and granting credit without collateral at the Sharia Microfinance Institution (Micro Waqf Bank) KHAS Kempek Cirebon. This research approach is a doctrinal approach where the data used is secondary data, then data collection techniques are carried out using document studies and literature studies, after which the data is analyzed qualitatively and presented in descriptive form. Based on the research results, it is known that the application of the principle of prudence and providing credit without collateral at the Sharia Microfinance Institution (Micro Waqf Bank) KHAS Kempek Cirebon has not been fully implemented. Of course, in order to achieve the health of a financial institution, things like this must be used as evaluation material by applying the precautionary principle.