ABSTRACT
The term religiosity is associated with diversity, solidity of belief, and appreciation of the religion one is adhering to. It shows the aspects of religion that are lived by individuals within their heart. In Islam, religiosity is reflected in the practice of faith, sharia and morals. It means that religiosity can be measured by the presence of religious institutions in all aspects of life. Islamic Financial Institutions, one of which, is a business entity based on Islamic principles and teachings. In carrying out its activities in Indonesia, this institution is based on Fatwa of the National Sharia Council of the Indonesian Ulema Council.
In practice, adherence to the provisions of sharia is deviated a lot. One of the causes is the factor of legal awareness. Based on the above background, this paper reveals customer understanding and awareness based on religiosity as the supporting factor for the success of financing for micro business actors. Low customer understanding and experience build understanding of contracts that are not in accordance with sharia provisions. Sharia contracts are often interpreted as debt agreements with the obligation to pay for the interest. However, the customer’s understanding of the values of the contract, including trust, fairness, honesty, and mutual benefit, is very good in which it is inseparable from the socio-cultural influence of the local community.
