Interpretation of the Muslim middle class regarding ujrah-based micro sharia pawn schemes: A phenomenological analysis

Abstract

Background: The growth of the Muslim middle class has increased demand for efficient Islamic financial services that comply with Sharia principles, particularly the prohibition of riba. However, research on Islamic pawnbroking has paid limited attention to users’ subjective experiences with ujrah-based schemes. This study explores how religious values, economic considerations, and trust shape users’ financial decisions. Methods: This qualitative phenomenological study involved in-depth, semi-structured interviews with ten Muslim middle-class informants in urban and peri-urban areas of Magelang Regency, Indonesia. Observations and document analysis supplemented the interviews. Data were analyzed thematically. Findings: Users perceived ujrah-based Sharia pawnbroking as a practical, transparent, and Sharia-compliant short-term financing option. Avoiding riba, understanding service fees, and trust in institutions influenced their decisions. Trust developed primarily through consistent service experiences rather than Sharia compliance claims alone. Conclusion: Users’ decisions reflect an interplay between religious commitment, economic rationality, and experience-based trust. Transparent fees and consistent service delivery are essential to strengthening confidence in Sharia pawnbroking. Novelty/Originality of this article: This study offers a phenomenological, demand-side perspective on Islamic finance, demonstrating how religious values, economic considerations, and experiential trust intersect in Muslim middle-class users’ interpretations of ujrah-based pawnbroking.