Questions tagged [banking]

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23
votes
4answers
106k views

How do Islamic banks make money if interest is prohibited?

I know that Islamic Banking involves the prohibition of interest based loans. But how do Islamic Banks make profit if they charge no interest?
17
votes
5answers
39k views

How to cope with interest payed by banks?

People have saving accounts in bank to save money in a secure place. And Salary accounts are also a kind of Saving account. Banks usually pay a small amount of interest after particular interval. My ...
11
votes
2answers
5k views

Why is Murabaha not considered Riba?

To take the definition of Murabaha from Wikipedia: This concept refers to the sale of goods at a price, which includes a profit margin agreed to by both parties. The purchase and selling price, ...
8
votes
1answer
3k views

Is indirect help to a riba business haram?

I came across the question Working in banks in an Islamic country. According to my understanding of the answer by Shaykh Muhammad Saalih al-Munajjid, You are doing haram if you are helping someone ...
6
votes
2answers
672 views

What to do with interest paid by banks? [duplicate]

I am being paid interest into my bank account and not really sure who to give it to. Is it simple enough for me to donate it to the mosque or does it have to be donated to somewhere specific?
6
votes
1answer
458 views

What happens in a Murabaha mortgage when the seller defaults?

The question Why is Murabaha not considered Riba? discusses the theoretical difference between Murabaha and riba. I would like to know if there is any practical difference. To be concrete, let's talk ...
6
votes
1answer
2k views

Is working for a bank as a software engineer Haram?

If I have to work as a software engineer in a banking company is it Haram? I have this doubt because, that bank will be working solely on the basis of interest, which is haram. I am an active part ...
5
votes
6answers
31k views

What is the Sharia ruling on working in a bank?

Nowadays, lot of students look for getting a job in banks. What is the Islamic view if a person gets a job in bank?
5
votes
2answers
12k views

What are the credit card services that are not haram? and how is it built to make it not haram?

Basically my question is in the title field, my question stems from this comment: It deserves mention that not all credit card services are haram, it depends. – Tamer Shlash, Jul 29 '12 at ...
5
votes
1answer
6k views

What is Mudarabah in Islamic Banking? How is this different from traditional banking?

I believe that the Islamic Banking system is pure from impurity of Riba (interest). But some of the Muslims do not see any difference between the Islamic Banking and traditional interest based ...
3
votes
1answer
85 views

Is it necessary for the mudarib to reveal his dealings to the rab-al-mal?

In a mudarabah-based business, does the rab-al-mal have the right to know which businesses the mudarib chooses to invest the capital in? If, for example, the mudarabah contract clearly requires the ...
3
votes
2answers
395 views

What to do to prevent or overcome bank interest (riba)?

I'm working abroad and my bank account is in USD currency. Nonetheless, the bank does not offer interest-free banking for some reason (said that its a system generated for each deposit I receive). ...
3
votes
1answer
889 views

Is working in central bank haram which does not provide loans nor keep deposits based on interest?

So far I know that working in riba-based bank is not allowed. But for central bank, which does not provide loans nor keep deposits based on interest, will it be permissible to work on the central bank ...
2
votes
1answer
3k views

What is the ruling on working in bank projects? [duplicate]

A company is likely interested in hiring me and I am actually going through several interviews. It is a software vendor company that develop products for testing, validating, and virtualizing services....
2
votes
1answer
2k views

Is it permissible to work in a bank in Islam? [duplicate]

I want to know if working in a bank is Haram or Halal in Islam? I am currently working in a Investment company. I am getting confused regarding this ruling.
2
votes
2answers
10k views

What does profit rate in an Islamic banking mean?

Is it similar to interest rate in conventional banking?
2
votes
1answer
7k views

Is it permissible to work in a financial institution, if you work in a role that does not directly deal with riba?

I am a Muslim undergraduate student in the US who is contemplating career options and thinking about the finance track that a lot of undergrads gravitate towards (positions in investment banking or ...
2
votes
0answers
283 views

Are transactions using credit cards haram?

Is it haram or halaal to transfer money using a credit card?
2
votes
0answers
139 views

What happens if you are late with your payments to an Islamic bank?

According to one answer here: https://www.quora.com/How-do-Islamic-banks-make-money-if-they-cant-charge-interest-because-of-sharia, you have to pay what you owe and the bank can force you to pay. So ...
2
votes
0answers
217 views

Question on Murabaha (selling the product before the end of the contract period)

Assalamu alaikum All, In a Murabaha, can the Buyer/Agent of the product, who promises to buy the product from the Seller at a later point in time, sell the product to his customer (with the Seller's ...
2
votes
3answers
5k views

What is the islamic view on profit received from a Profit and loss bank account?

Is it a sin to receive profit from a profit and loss bank account? I heard that profit earned from one's bank account is haram. But how would this change if the person also incurs a loss in case the ...
1
vote
2answers
75 views

I want to buy a product but they only accept credit cards so can I apply for one and buy the product?

Iam a student from india.I want to use adobe products and using pirated version is is haram so i want to buy genuine products.Adobe provide their products for 1 year subscription monthly(annual plan-...
1
vote
1answer
940 views

Is buying a car on installments from a commercial Islamic bank haram?

I want to buy a car from Suzuki through a so-called Islamic bank on installments. However, the car price is 11 lakh but I have to pay approx 14 lakh in 5 year installments. Is this interest or ...
1
vote
0answers
18 views

How do Muslims define Usury or interest (Riba in Arabic) under the modern developed economy?

What is the definition of interest in Islam ? Anything in addition to the principal or price? Is modern economics possible if Riba is forbidden?
1
vote
0answers
20 views

Is working in bank IT department is haram?

I've been working in a bank for almost 1 year. I'm work involved in development & maintenance of remitting software and various bill collection utility (Electricity, Gas, Water etc) software. My ...
1
vote
0answers
53 views

Where are free from riba countries?

In the name of Allah, I live in a country where all the banks are likely under a central bank that charges interest. So in order to get out of this system, I want to migrate to another country that ...
1
vote
0answers
79 views

How to avoid Central Banking System in a country?

I live in Indonesia where all banks is likely under a central bank. As we know that the central bank still applies interest rate, so all the 'sharia labelled' banks in Indonesia is still affected by ...
1
vote
1answer
88 views

Dealing in Interest while Living in a Non-Muslim Country

If a person lives in a country which has an interest based banking system then is he not allowed to work in any company or institution then? As all companies will comply with the government rules ...
1
vote
0answers
20 views

Using interest money to make up for capital loss

Assalamoualaikum, If we have a capital deposited with interest in a savings bank account for necessity purposes, and now an amount of the capital is lost, can we take an equal amount from the ...
1
vote
0answers
91 views

Does one have a profit in an Islamic banking system?

Usually when you open an account in a bank they try to attract you with interest. My question is how so called Islamic banks can -likewise- offer their customers, especially as riba (and interest is ...
1
vote
1answer
66 views

If there is no way at present for me instead of depending on bank interest , what should I do?

Assalamu Alaikum. I'm a student who's father died 5 years ago. When he was alive he saved his part of income in bank accounts. Now I live with my mother and I'm the only child of my parent. As far as ...
1
vote
2answers
2k views

Is it haram to invest on a bank's stock that has interest as a source of income?

I want to invest in a bank's share, but I know the bank earns interest as a source of income. But it does have other sources of income too. Will it be haram for me to invest in it knowing that it ...
0
votes
1answer
27 views

Using PayPal to pay for goods and services

A similar question has been asked here about transferring funds through PayPal but the purpose in this question is different: it is about buying something (or paying for something you are going to get ...
0
votes
0answers
29 views

Difference between commerce and Riba in Islam, Does commerce entails risk?

What's the difference between commerce and RIBA in Islam? Let's take the example of looking for a loan to buy a house. Traditional banks are using Riba because they lend you money, you buy your ...
0
votes
0answers
21 views

Degree apprenticeship in banking

Is it permissible to complete a degree apprenticeship in banking in the operations sector but leave after you get your degree?
-1
votes
0answers
34 views

How renting isnt a riba

One of the form of riba is getting richer by lending something unlike a lot of muslims think a riba an-nasiya isnt limited on money only but you can lend any goods asking for more , it is riba ...
-1
votes
1answer
189 views

Is a bank job which is related to an ATM cards department haram? [duplicate]

I was wondering if doing a job in bank which is related to ATM cards department is haram. This department is not involved in any interest transaction.