Sharia-Based "Cash Tempo" Payment Scheme Facilitates Low-Income Housing Ownership

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FORMOSA NEWS

A community service team from UIN Sayyid Ali Rahmatullah Tulungagung has introduced a sharia-based housing payment scheme known as cash tempo to expand access to subsidized home ownership. This innovation was developed to address the obstacles faced by prospective buyers who struggle to meet high upfront payment requirements and prefer to avoid interest-based banking systems.

Background and Issues

The demand for decent housing continues to rise; however, not all low-income individuals can access government-subsidized Home Ownership Credit (KPR) programs provided through banks. Beyond the limitation of initial funds (down payment), many prospective consumers have religious preferences to avoid interest (riba) because they believe it conflicts with the principles of justice in Islamic economics. The gap between the high demand for housing and the lack of inclusive financing options highlights the need for more adaptive alternatives.

Methodology

This study utilized the Participatory Action Research (PAR) approach, involving collaboration between students, developers (PT Griya Karya Sentosa), marketing teams, and prospective consumers. The mentoring process was conducted through several systematic stages:

• ·         Problem Identification: Conducting field observations and direct interactions to understand transaction barriers.
• ·         Planning: Engaging in participatory discussions to design a payment scheme that is flexible yet business-viable.
• ·         Implementation: Introducing the cash tempo scheme as an interest-free alternative directly to prospective consumers.
• ·         Reflection: Conducting joint evaluations to assess the effectiveness of the scheme and formulate improvement steps.

Key Findings

The mentoring results indicate that the cash tempo scheme is a relevant solution for specific market segments:

• ·         The scheme offers the flexibility of installment payments made directly to the developer without involving bank interest.
• ·         Prospective consumers who previously hesitated to proceed with purchases due to concerns regarding riba regained interest upon learning about this payment option.
• ·         For developers, this scheme opens new market opportunities, although it requires disciplined risk and cash flow management.
• ·         The developer established a payment structure that allows for installments over a maximum period of 12 months with a minimum down payment of 30%.

Implications and Impact

The implementation of the cash tempo scheme provides a positive step toward financial inclusion in the property sector. For the community, this innovation offers access that is fairer and aligns with their values and beliefs. Meanwhile, for developers, this initiative represents an adaptive marketing strategy that directly addresses real-world field needs. Researchers emphasize that the success of this scheme is highly dependent on strengthening administrative aspects, such as developing clear Standard Operating Procedures (SOPs) and providing consumer education to ensure that transactions remain measurable and sustainable.

Author Profile:

• Ning Wijayanti-- UIN Sayyid Ali Rahmatullah Tulungagung
•  Kukuh Trisnafi-- UIN Sayyid Ali Rahmatullah Tulungagung
• Cindy Wakhidatul Maqfiroh-- UIN Sayyid Ali Rahmatullah Tulungagung
•  Muhammad Aswad- UIN Sayyid Ali Rahmatullah Tulungagung

Research Source:

Wijayanti, N., Trisnafi, K., Maqfiroh, C. W., & Aswad, M. (2026). "Supervision of the Implementation of A Sharia-Based Cash Tempo Scheme to Improve Access to Subsidized Housing Ownership". Jurnal Pengabdian Masyarakat Bestari (JPMB), 5(5), 373-386.

DOI: https://doi.org/10.55927/jpmb.v5i5.29.

URL: https://journaljpmb.my.id/index.php/jpmb