One side views credit as the domain of conventional economics, on the other hand financing is not necessarily Sharia-compliant, so credit or financing?
There is a rule of Muamalah Fiqh that states "The benchmark (to determine the validity) of a contract is its purpose and meaning, not its words and naming"
As a Muslim, of course, his words and language are good, cultured, understand who his friend or interlocutor is, the time is right, the place is noticed, and the meaning is considered, and the purpose is determined, further the law is considered and even obeyed.
Credit or financing is generally known in the context of financial institutions, in addition to financial institutions, many people more often use the words debt and owe, not debts in KBBI (Big Dictionary Indonesian), and accounting science.
Credit Originates
In Muamalah the practice of debt by lending money to others and then returning it in the same amount, called qardh, the word qardh itself means to cut, meaning if you lend money, actually the person who lends the money, has cut off his property for others, so the qardh contract includes the tabarru contract aka the promise to help, the character is indeed to help people who need help, In this case it requires money, it can be for reasons that money is more flexible to use for various purposes. But the unique qardh contract, the real money has been deducted from the owner of the property, potentially returned intact, because the person who borrowed the money is obliged to return it, and the person who lent it will get a great reward until the money can be returned intact.
"All the sins of the martyred will be forgiven except debts". (Hadith Narrated by Muslim)
Anas ibn Malik said that the Prophet said, "I saw at night in Isra'kan, at the door of heaven it was written: Alms Reciprocated Tenfold and Qardh Eighteen Times. I asked, O Jibril, why is qardh superior to alms? He replied, because the beggar asks for something and he has, while the borrower will not borrow except out of necessity". (Hadith Narrated by Ibnu Majah)
While the word credit is widely mentioned comes from the word credere from Latin, which means trust, the meaning of the person who is given credit is a trustworthy person, in the context of financial institutions, trust is at least seen from the 5Cs, namely Character, whether the credit history is smooth, Capacity, whether the finances are healthy, Capital, whether the capital is qualified, Condition, whether the business industry supports, and Collateral, whether the guarantee is sufficient.
Regardless of the origin of the word credit, in practice credit in financial institutions contains more elements of usury, both in terms of distribution, with additional loan interest (usury) and in terms of funding, with additional interest on deposits. The author's assumption is that Islamic financial institutions certainly need to distinguish from credit practices in conventional financial institutions, using the word financing, which is more appropriate to use, because financial institutions are actually in the form of business entities that seek profit, so the contracts used are commercial contracts such as murabahah contracts, musyarakah contracts, ijarah contracts etc., not tabarru contracts such as qardh (credit) contracts.
Closing
Thus there is really no conflict between credit or financing, in contemporary conditions, every Muslim can use the words credit, financing, borrow, debt, loan, borrow or anything according to the language of their respective regions, their respective cultures and their respective fields, but it would be more perfect if it returned to the treasures of Muamalah Maliyah in the use of language and words, the most important thing is that the contract is correct, The process is correct, referring to the fatwas of the Ulama, plus the prevailing laws and regulations of the Government and not opposing each other, but supporting each other.
Wallahu a'lam bishawab