A review of risk rationing practice in islamic microfinance to achieve sustainable development goals in Term of Poverty in Indonesia

This study review risk rationing practice in Islamic microfinance to achieve sustainable development goals. Problems related to risk rationing from BMT are the collateral requirement for every financing, the absence of collateral insurance, and collateral fraud from customers. Focus on the importance of character, creating collateral as a formality, a family-based approach to collateral, no collateral for small financing, no specific collateral, outstanding collateral for trustworthy borrowers, business as collateral, and joint liability collateral are the solutions in the case of collateral requirement. Using collateral insurance and conducting indepth checking are also solutions to risk rationing faced by BMT.