“…Qard improves socio-economic concerns (Hassan et al, 2021) and social welfare, educates lenders, and benefits borrowers (Saprida et al, 2020). According to Firmansyah (2016b), Yeubun et al (2021), and Wijayanti et al (2022), Islamic banks can finance MSMEs using qard financing. The rural banks show the rise of Islamic finance for the society and MSMEs, stimulating economic growth (Mardhiyaturrositaningsih, 2022;Suseno & Fitriyani, 2018) Figure 1 reports the fluctuating qard funding statistics of 164 Indonesian Islamic Rural Banks, as reported by the Financial Services Authority (OJK), spanning 2012 to 2020.…”