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| *Loan,banking and credit>>>bank loan |
Is it true that muslim banks do not charge interest for loans or etc.? |
I seen this topic in another question earlier. If they do not charge interest then how do they make their money? Also, what is to stop someone from getting an interest free muslim bank loan and depositing the funds into a interest earning savings or checking account? An Islamic bank (as a Muslim bank is called) does not charge interest. This is because interest is banned in Islam. Instead Islamic banks have something called a profit rate. Its an extra charge that you as the customer pay for having an interest-free loan. this is how islamic banks make a profit, hence it's name. Quite clever huh? Here's how it may work: say you want to buy a car for X amount. Normally you'd approach a bank a get a loan. For an islamic bank you apply for them to buy the car for you and then you buy it from the bank for X+Y amount, Y being the profit the bank makes. There is alot of debate in the Muslim world as to how legal profit rates are. As for the last part of the ?, absolutely nothing but their own conscience. yes it's true. Wow, I didn't know that was true, but I assume that Poki Poki knows. And I'm not really surprised, because the Qur'an does criticize loaning at interest. Perhaps they charge a set fee or something. But if the fee is comparable to what would be made on interest, this seems to be just a loophole. I'd like to know more about it. Yes, I think so. I don't really know, I'm not into this stuff. typically with religious free loan societies the loans are not that big (a few thousand) and they require a co signer that can prove they can pay if you default. So if you can get that you can try your plan. But I know some mortgage broker who are Muslims really cut throat profit/interest. Yes islamic banks won't charge any interest on loans. Taking interest is haram in islam |
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