Fiqh Analysis of the Practice of Pawning House Certificates as Business Capital in Contemporary Islamic Economic Contexts

This research examines the practice of pawning house certificates to obtain business capital from the perspective of Islamic jurisprudence (Fiqh). Pawning property certificates has become a common method for entrepreneurs to access urgent funding, especially in communities with limited access to formal financial institutions. However, this practice often involves elements that may conflict with Shariah principles, such as riba (interest), gharar (uncertainty), and potential exploitation. Through qualitative analysis and fiqh-based review, this study identifies the ethical and legal challenges inherent in current pawning practices, emphasizing the risks faced by borrowers, including the possible loss of their homes. The research highlights the gap between practical financial behavior and Islamic law, calling for greater transparency, fairness, and the promotion of Shariah-compliant alternatives. Findings suggest that developing accessible Islamic financing models and increasing borrower education are essential to align pawning practices with Islamic values, ensuring both economic empowerment and religious compliance. This study contributes to the discourse on ethical finance and provides recommendations for policymakers and Islamic financial institutions to enhance the socio-economic welfare of Muslim entrepreneurs.