Islamic Loans?

Can anyone explain to me how Islamic loans work? In the United States how do Muslims purchase a home/car if they do not have all the money? And in Muslim countries where banks only operate under Islamic principles how do they purchase homes or cars if they don't have all the cash available? Are there loans available in the United States that are acceptable under Islamic principles? thanks

Islamic Loans?

I know interests are forbidden in Islam. ..Below link gives some info. on this toipcs.

http://www.islamic-banking.com/aom/ibank...

Islamic Loans?

I think they can borrow at interest, they just can't lend at it.

Incidentally, interest is forbidden by Christ as well.

Islamic Loans?

I believe the issue lies with the loaner, not the person receiving the loans. I could be wrong, but I believe there is nothing wrong in Islam's view of taking out a traditional western loan, just not making it.

Islamic loans work on the principle of paying back the loan and also tying in some of the profits made, such as in a business. I assume a home or car loan would work by paying part of one's paycheck instead of interest.

Islamic Loans?

most of the Muslims in the Muslims nations are Muslims by name only and the other thing is. it is ok to lie in their religion.

banks in the middle east give you more interes than the USA.

Islamic Loans?

Everyone that has things such as you speak of do not have cash available and most do not have credit either. It is who you know and what one does to make it happen.

Islamic Loans?

I think there are Islamic banking institutions in the United States.

My understanding is they go about this in a couple of ways. The lender may go ahead and purchase the item, and then sell it to the borrower at a profit - letting them make payments, but charging them no interest. Or, they may simply charge the borrower a single fee, rather than charging interest.

I might be wrong, but that's what I've been told.

Islamic Loans?

instead of interest you pay rent on the loan

Islamic Loans?

Usury, or riba, (the practice of charging interest on a loan) is illegal under Islamic Law or Shariah. As a business it is considered haraam (morally illicit).

However, making a profit is perfectly fine.

So, you sell a car for $10,000 under Shariah and the buyer doesn't have enough money. He has 3,000, making him 7,000 short so you raise the price by an amount (say, 2,000) and then divide out monthly payments over the time agreed upon for the outstanding 9,000.

To me it is just a rewording of the same thing but that kind of transaction is perfectly legal under Shariah. It doesn't work well in Western banking so there are Islamic banks (usually an adjunct of the local mosque) that cater to the local Islamic population.

As an aside: usury is also illegal under the Christian Bible.

Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of anything that is lent upon usury. (Deuteronomy 23:19).

Islamic Loans?

It is permissible to take the money from the bank that is financed by non-Muslim government or private funds but not with the intention of loan. The knowledge that the bank will sooner or later force him to pay the capital as well as the interest does not affect [the lawfulness of] his taking the money

Taking an interest based loan is not permissible except for when it is very urgent; it is necessary that he should do so with the intention that it is a transaction without return, even if he knows that he will end up paying the capital as well as the interest. And he should not do so with the intention of getting the loan with the condition of paying interest.

It is permissible in a non-Muslim country. To even shop around for a bank with best interest rates.

Islamic Loans?

loans should't be given or taken on any intrest for anymatter