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19

A traditional bank makes money by lending people money and charging interest on that. And they provide various services and charges money for that also. Again they take money from other people and pay them interest, with lesser rate. An Islamic bank also lends money to people. But it is kind of a business agreement between the bank and the borrower. The ...


18

There's no doubt that this interest is ribaa which is prohibited by Islam as a form of thulm (wrongdoing). So the question is, how do you deal with it? Who's money is it, anyway? There are two opinions of the scholars on this (source: Islamic finance class, don't have AMJA fatwa or anything like that on me): Don't touch it: It's interest. Just leave it in ...


10

It depends. If the bank doesn't deal with Riba (interest), it is absolutely permissible for him to work there. However, it is not permissible (according to majority of the Sunni scholars) for a Muslim to work in a bank that deals with Riba, even if the job that they are appointed to do is not related to the Riba-based dealings. This is because they would ...


5

Murabaha is, in its essence, just a pair of shari'ah-compliant trades: The bank purchases a good at market value. The bank adds its profit margin and resells the good to the end buyer Adding a profit when reselling a good is rather fundamental to trade, and can hardly be considered riba; God has clearly permitted one and forbidden the other. The only ...


4

According to the Hanafi madh'hab, it is permissible to work in a bank as long as the job does not entail direct involvement in something haram (e.g. processing interest-based transactions). So, for example, working as a driver or a guard would be acceptable, since driving and guarding are fundamentally halal activities. Any money earned therefrom would ...


4

Some scholars feel that purifying ones own wealth by donating such money directly to the masjid is a bad idea, since the masjid is a house of God and should be built and maintained using only pure funds. Similarly, it shouldn't be used to print Qur'ans. Rather it should be given to the poor and the needy, or any other charitable purpose. This is, I ...


4

After reading this islamqa, I have decided to withdraw from the interview process. Today was my last interview but I sent an email this morning to cancel it. They called me telling me I was the perfect candidate for them and tried to help and understand my reasons which I did not explain in my withdrawal email. After explaining that as a Muslim, I cannot ...


4

Now the point is as follows as long as you don't have direct deal with riba your earnings are halal. But if you somehow deal or help for riba business your earnings are haram. This means if you don't have direct contact with riba all you do is halal. I found a fatwa (Arabic) saying that you can even work in a bank (that deals with riba) if you work in ...


3

Banks serve a very important function in current society. Unfortunately, one of those activities also includes dealing with interest. But, leaving that aside, most of the halal businesses would not be able to function without the access to funds, and the facilitation of transactions. So, as a blanket statement, Banks are not haram, and working at a bank ...


3

Credit cards are similar to loans from a merchant to a seller, when you use a credit card you charge the bank you received the card from, and then they bill you later. The only way that the bank makes money is if you miss a payment. 18) Grace Period. You can avoid interest on any portion of a Purchase shown on your current billing statement that you pay ...


3

the idea behind progibiting usary primarily was to discourage the holding power of money. to be really honest i find islamic banking as more or less the same thing its just playing with the concepts to do exactly the same thing " considering that compond interest is not prevalent any more .....conventional banking and islamic banking are doing the same thing-...


3

This is the answer according to Jafari Fiqh: ANSWER TO QUESTIONS 3, 4 AND 5: The following is the translation of the fatwa of Ayat. Khu'i from "Masa'ilah wa Rudud," p. 112. Issue no. 319: Is it permissible to work in banks dealing with interest? RESPONSE: In His Name, the Exalted. That is not permissible except if his work is not primarily linked to ...


3

There are several different forms of Islamic Banking. Specifically, in mudarabah you have 2 parties. One party, provides all the capital (rabb-ul-mal), other party provides management (mudarib). They split profits at a predetermined ratio. In case of loss, only lender (rab-ul-mal) eats up the loss. How is it different from non-Islamic banking? In order ...


3

Riba is Haram. Here, in my country, they offer online banking. I think this happens all over the world. So, I can create as much as accounts online. Then I have created a separate account for Riba and each month I transfer the interest to that virtual account via online banking. So, Riba doesn't mix up with my money and I don't need to care about that Riba....


2

The general rule is that you are supposed to avoid interest as much as possible. Speaking from a United States perspective, there are plenty of checking accounts without interest. There are mutual funds that avoid financial stocks. There are halal home buying companies that let you buy a house without dealing with interest-based loans. And if you can't ...


2

there are some kinds of accounts without interest but other benefits. if you could not find them. you can save your money in other way. for example buy stock of some company or gold or a land. some scholars say if you do not want to receive any interest and Bank itself pay you then there is no problem. anyway Islam wants to Muslims use their extra money ...


2

An Islamic savings account which works under the principles of mudarabah is a form of business relationship: You provide the money, and the bank does business with it. As part of this relationship, a profit sharing ratio (PSR) is stipulated (e.g. 95% of profits go to the bank, and 5% of the profits go to you). The profit rate would be the actual increase ...


2

According to the Bank Negara Malaysia, the rabb-al-mal has "a right of access to reasonable information regarding the mudarabah venture." [Shariah Standard on Mudarabah § 10.5]. While this is classified as a Shariah standard, it does not go into detail on how this ruling is derived or what exactly constitutes "reasonable information." I have however ...


2

I am from India and in same situation like yours. I need to make payments for hosting and other services through credit card. Recently I got a credit card from my bank which has auto debit feature, which means on due date whatever balance is due from me, it is debited from my SB account. This way I never have to pay any interest, if I ensure there is ...


1

It wouldn't be much of an Islamic bank if it were haram. There are ways to make it halal, and you can contact the bank to ask for details and some Islamic banks have fatawa declaring it halal. The usual process is described by an AboutIslam fatwa (about houses): Islamic banks buy the properties for cash and sell them for a higher price on installments. ...


1

There are Muslim charities to which you can donate to "cleanse your income" in Islamic ways. For example, Islamic Aid write: Can I donate interest money to Islamic Aid? Yes, you can. We will use your money to support our work helping save lives of the poor and needy but will not use it on projects where interest should not be spent, such as the ...


1

maybe i can help a little, i work at one of islamic/syariah bank in indonesia. according to my associate, apart from reconstruction or rescheduling, in case of default, rather than grab the house then sell it in order to cover the remaining debt in other words, we (bank) could buy back the house and sell it (auction). then bashir get the 40% of it. all ...


1

The nature of riba in Islam How do you think about this issue? I need some perspective on this, but perhaps I am being too idealistic in the world we live in? NO, you are definitively not too idealistic. Ethical investment is a very important issue in the world we live in. Indeed, your question shows that you have great honesty in your faith. This will be ...


1

It could be related to the part in which you are working. Since as I found the viewpoint of Ayatollah Sistani, according to his ruling: In case working in the bank is in a part which is related to Rabawi transactions and somewhat be effective in fulfilling of that, then it is not permissible for him to work there. But working in the parts of the ...


1

assalaamualaikum look it has reached a point in todays society where money is the basis of everywhere we go, just like in the hadeeth of Rasool Allah (SAW). Interest is absolutely haraam, as allah says so in the quran, He has made trade halaal and interest haraam. Even in islamic banking systems, they still make profits and losses, but they have different ...


1

There's a difference of opinion about this, and there are two schools of thought. But first, have you considered switching to an interest-free account? Several banks offer these, some upon request (even if it's not advertised). The two opinions are: Don't touch it. It's riba money, and you should leave it where it is. When you close your account, close it ...


1

Let's look at another example. Let's say one housing developer wants to sell his houses direct to customers from his real estate project. He does not use any banks or any kinds of financing in order to sell his houses since he will be responsible for the selling and the collections of the installments within 20 years. He has calculated that each of the ...


1

How Islamic Credit Cards work [The] bank buys the product in the moment the card goes through. Then it sells the product to the customer at a higher price (costs plus x) and buys it back again at cost price. So the bank made a profit from the difference of prices. Sometimes they make money from transactional fees, though very little. There are also ...


1

Working of Islamic banking and conventional banking are quite different with one another. In Islamic Banking the concept of profit sharing, ownership and risk bearing matters are the vital elements of Islamic banking that differentiate it from the conventional banking.


1

It’s very simple people make it more complex. Just take a simple example, you have a house of your own and someone came to you and asked you to give me your house on rent as I wanted to open a prostitution in your house and i will give you rent for this per month. Now you know the prostitution is a SIN and the purpose is become in your knowledge that your ...


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