In general, the literature suggests that Islamic banking has a close relationship with financial services to SMEs. The implication of this relationship is that Islamic banking must have products that suit the needs of SMEs, which incidentally are low-income people. In its operations, Islamic banks have more roles than conventional banks in helping the capital needs of SMEs. This study aims to explore the perceptions of SMEs regarding the role and services of Islamic banking. This study uses a survey method to obtain relevant data. The respondents involved were SMEs in Tegal Regency, Central Java province, Indonesia. The results of the analysis show that service quality has a positive and significant effect on customer satisfaction of Islamic banks (β=0.576; p<0.01), service quality has a positive and significant effect on customer loyalty of Islamic banks (β=0.361;p<0.05), and customer satisfaction has an effect on positive and significant to the loyalty of Islamic bank customers (β=0.274; p<0.05). The research findings have implications that Islamic banks need to improve the quality of service to their customers, in order to meet the needs and desires of their customers. By providing services in accordance with the expectations of its customers, it is hoped that customer satisfaction will be formed. The results of this study indicate that customer satisfaction is a factor that plays a role in creating customer loyalty.