loan

Suleyman wrote: winjoy wrote: is it ok for a Muslim to loan from bank to buy an apartment or a car ? As Salamu Alaykum,you can only use murabaha for buying a home through it's rules,the bank will buy the house for you then pays it's value to the buyer of the house and takes the property on it's own(the bank),then will give you a murabaha project including payment days,the project must include a cash payment(min/25%) being paid to the seller of the house without the bank by your side as the buyer of the house ..take care that Islamic banks only pays the money to the buyer of the house not to the one who uses murabaha,at the end of the payment period the bank gives the property to you...this is Islamic banking style...the credit depends on real trade not on money and interest...as an practicable examples for you,interest means the difference(quantity,moneyu,benefits..exct.) received by the exchange of two same thing...

Bismillah,

Sweet.  25% fee.  This is Islaamic banking, huh?  I think the Islaamic bankers are kind of missing the point of not paying or charging or witnessing riba.  You're not supposed to rip people off and cause the inflation of the value of goods over time.  Please think about it. 

What is the bottom line?  Take two houses:  One is paying 6 % interest and the other with your 25% fee.  Can you answer which house in the end will end up actually costing more money?  I know you know the answer without doing the math.  Then just think about the meaning and reason for the rule and do the right thing.

Peace

Bismillah irrahman irrahim

Assalamu alaikum

I have heard two rulings on this particular issue, first one is from hanafi school which states that if you live in non-muslim country then taking an interest on your money is ok from the banks in those countries. There are some sort of arrangements in the banks that if you have some basic money you keep it in those banks and then pay the mortgage with your salary through your bank. The interest on your money and the mortgage interest square each other off. Quite complicated for my little brain but I have written as it is.

Now the second way is told by my sheikh who happens to be very strict(first ruling stated above is thought to be most lineant one). I am not sure how it is where you live but here even banks like HSBC offer islamic mortgages but according to my sheikh most of em are not halal. For a halal mortgage or loan, islamic bank acts as a first buyer. The property is bought say 100,000, islamic bank pays for it. Then you have a contract with the islamic bank that within next so many years you are going to pay back the money with stated additional money due to increase in the value with time. i.e add 20,000 for 20 years as thats how much you think value of property is going to increase. But keeping in mind that you have to state the final value in your contract and it can not be changed because you are looking at a high rise in property value.

wassalam