BMT (Baitul Maal Wat Tamwil) is one of the financial institutions other than banks, which specifically aims to promote and strengthen community structures economy. Its development can provide broad enough changes to improve the Islamic economy. However, since the Covid-19 pandemic, various businesses in the world have stopped, causing many financing members to fail to pay and the emergence of problematic financing. So the purpose of this study is to find out what causes problematic financing during the Covid-19 pandemic and how the problem financing restructuring model is in dealing with problematic financing during the Covid-19 pandemic at the BMT Dana Mentari Muhammadiyah Purwokerto Twin Service Office.
This research uses the type of field research (field research). Data collection techniques using interviews, observation and documentation. Sources of data obtained are primary data and secondary data. Where the data that has been collected will be analyzed data that is compiled and drawn conclusions from existing theories.
Based on the results of the study, it can be concluded that the causes of problematic financing during the Covid-19 pandemic: 1). In the member business sector, namely where members experience a decline in their business so that it affects installment payments to the BMT. 2). In the merchant sector, since the pandemic, the enthusiasm of buyers has decreased, causing congestion in installment payments to the BMT. 3). From member characters. The problematic financing restructuring model in dealing with problematic financing during the Covid-19 pandemic is by means of re-contracts. Re-contract is opening a new agreement that only settles arrears of principal and margin without any additional costs including administration