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 ...
As you mentioned in your question ,verses and hadiths which prohibits usury ..
After I asked a Sheikh, he told me to try as much as possible to stay away from usury, and do all what you can to do so.
I would like to
remind you of Prophet Muhammad's speech peace be upon him:
whoever leaves something for Allah's sake , Allah will reward him with a better ...
By living in a country you are in fact striking a form of contract with the government of that country to follow it's laws. As long as these laws do not contradict Islam you are obliged by your contract to follow those laws.
Evading taxes means breaking the law of the country you are residing in, thus breaking your contract. Something a Muslim must no do. ...
The wife CANNOT BE FORCED to pay a penny. It's totally a man's duty. If he has a shortage, then he is forced to decrease THEIR standard of living, this does not give him the right to ask his wife to share the pay.
The wife can, of course, help her husband any time favourably.
Many evidences are included in this arabic fatwa.
I know of no reason why loyalty schemes (in general) would be haram, as they do not show any elements of riba, maisir nor gharar that would render such a transaction unlawful. They are merely a gift given by the company for the use of their product.
As such, the only issue with the use of the credit card would be the issue of interest payments, as signing ...
I found the answer I was looking for. As written here https://islamqa.info/en/96115:
Islam does not forbid saving up wealth in all cases, rather what is
forbidden and what a stern warning is issued against is not paying
zakaah on one’s wealth. But if a person pays zakaah, he is not
included in the condemnation.
May Allah help us to be stern in our ...
I have read many fatawa by scholars (such as this example from SunniPath) permitting investment in companies that have some of their profits earned through interest, so long as these interest-related profits don't comprise a significant amount of the company's earnings (e.g. are not a primary source of income). The same basic ruling applies for any shari'ah ...
According to a fatwa by Sheikh Muhammed Salih Al-Munajjid. It seems that buying shares in companies which have taken out loans is not advisable.
Here is an extract from the mentioned fatwa:
Companies should also avoid using riba-based loans in order to set up
production lines and factories; that should be achieved by using cash
and the money of the ...
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 ...
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-...
Fundamentally, yes, it is halal, but considerations must be made on exactly how the "loan" is contracted; attempting to run it like a modern bank where you're handling money that has been deposited (and can be withdrawn at will) would be questionable.
From reading through the proposal in OP's link, two viable scenarios come to mind, both of which are ...
If the price is known and fixed, and the only difference between it and a regular transaction is that it is payed in installments rather than as one lump sum (either up front or in advance), then there is nothing wrong with this transaction.
There is, however, a potential concern if you offer a better price for a lump-sum payment than for paying by ...
Islam devides items between "money" and "everything else". It was usually "physical" in nature, but nowadays it may include items like you mentioned. The important things is money can be exchanged for everything else than money. Buying money with money is essentially interest or "riba" and is strictly prohibited.
According to Fiqh, it is not feasible to consider everything as money, haply nature circumstances of the money, (i.e.) feasibility of the usage of that as the instrument of value measurement could be considered as the indication of the nature of money.
Totally, money could be considered as all general instruments which are related to the measurement of the ...
According to (4:32):
وَلاَ تَتَمَنَّوْاْ مَا فَضَّلَ اللّهُ بِهِ بَعْضَكُمْ عَلَى بَعْضٍ
لِّلرِّجَالِ نَصِيبٌ مِّمَّا اكْتَسَبُواْ وَلِلنِّسَاء نَصِيبٌ مِّمَّا
اكْتَسَبْنَ وَاسْأَلُواْ اللّهَ مِن فَضْلِهِ إِنَّ اللّهَ كَانَ
بِكُلِّ شَيْءٍ عَلِيمًا
"And do not wish for that by which Allah has made some of you exceed
others. For men is a share ...
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 ...
Usufruct is allowed and is not interest. Its simplest examples are that it is permitted for a farmer to rent land for cultivation, it is permitted for a merchant to use a rental horse to travel for doing business, it is permitted for a trader to rent a shop to conduct his sales in, and it is permitted for a lessee to sublet leased property.
All these ...
On the history
To answer your last question there's no report saying that the Prophet () or the rashidun caliphs have imposed any custom on Muslims. Note that 'Omar has imposed some duty customs on non-Muslims with the approval of the sahaba.
But be aware that zakat is not the only income source of bayt al-Maal (or the treasury) بيت المال in an Islamic ...
The website clearly mentions the following solutions for Islamic finance.
No interest on contracts lasting longer than 24 hours – zero rollover interest consistently.
eToro doesn’t take any additional rollover commissions for contracts lasting longer than 24 hours.
We do not charge any commissions or fees for account management. Our revenues come ...
I’ve done extensive research into regular option and binary options trading being haram or halal.
The short answer after my research is: Binary Options Trading is HARAM.
Why? In Binary Options trading, there is no underlying asset which is traded or dealt upon. In each deal you’re simply betting that the stock price will be above or below a certain price ...
These are two separate agreements that do not link to each other.
If the horses produce a foal, then the foal's owner is decided based on the contract. If the purpose of the horses was travelling then the foal stays with the owner. If not, it is decided based on what the contract stipulates.
For example, the Prophet (SAW) leased some land to the Jews and ...
Just to clarify for other users, Islamic banks really operate according to Islamic sharee’ah, and they do not deal with riba (interest) which is haraam (a sin), and they do not take interest in return for deferring payment, which is in fact the riba (usury) of the Jaahiliyyah, even if they call it by some other name, and they do not engage in ...
I'm not familiar with the exact fatwa you're referring to, but I suspect it's based on the interpretation of a number of ahadith (such as this one) forbidding the sale of unharvested goods (for either labour or trade).
The general meaning of this prohibition is to prevent doubt; you can't really sell what doesn't exist, and if you have a man work for you ...
There are special programs for this. Basically, you purchase the house or car and pay no interest, but in addition to your principle payments you also pay "rent" to the bank (or trust) which is proportional to the amount of equity the bank still owns. (Your rent decreases each month.)
Mathematically there isn't much difference from an interest bearing loan, ...
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,
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.
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 ...
In general, for a sale to be considered valid it requires an exchange of property from one party to another. However, exactly what constitutes "property" is a matter in which where is scholarly dispute.
The majority opinion was that it was something upon which ownership could be claimed, and which would bring benefit to the person who owned it. As such, ...
Yes, a scholar can take money for giving advice, the only person who cannot take money for his work is a Moazzin (the one who gives adhan). Other scholars can take salary.
Sayyidna Abū Bakr as-Siddiq (Radhi Allaahu ‘Anhu) said
I Will Take As Much Money As My Salary, As The Poorest Labour Of Medina Munawara Takes As His Minimum Daily Wage.
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.
First we should define what exactly interest is:
There are two types of riba discussed by Islamic jurists: an increase in capital without any services provided and risktaking, which is prohibited by the Qur'an, and commodity exchanges in unequal quantities, also prohibited in the Qur'an.
And for practising riba, which was forbidden, and ...