Being a banker who has done deals in Islamic banking (it is an upcoming and attractive area of banking), I think I can say a thing or two. Essentially Islamic banking is a sham…..let me try to explain how the system works. For example, in the case of mortgage - Here the lending bank acquires a share in the property along with the client. The client then pays the bank periodic rent and the bank gradually releases its share in the property back to the client. This is the way income is earned by the bank while the transaction becomes Sharia compliant. In other words, the client pays Rent rather than Interest. Now for all those who don’t know the principles and are commenting on the board, I ask an open question. How is this different from regular banking? In the garb of rent the client essentially pays rent. So I would recommend to all the followers of a faith that you guys can proudly follow it but also question if everything suggested is indeed right….this attitude of questioning ultimately brought renaissance to Europe. If we blindly follow everything then it will take us backward and halt progress.
Re: Re: Please Think!
by rick hertz on Feb 14, 2011 09:20 PM
rent is not interest. interest is that if even a single penny more than the capital is paid, then that is interest. here what bank gets is the profit of the asset and after a period the bank gets back the money which it lends and now the asset is fully owned by the buyer. surely islamic bank is better and if every bank obeys shariah then our country will not die by paying the interest. our country will be free from poverty. this is not the law made by muslims, but this is the right way to success of a country. Keep away the talk about religion at least for the sake of the country.
AlHamdulilah for this wonderful news, & Jazzak Allah for the people who have taken initiative towards a wonderful step.So many times i tried to collect money to buy a house but never my heart agreed for that bcoz of riba & at the end money used to spend for other reason & i was asking ALLAH for help now its done.
