Where can I get halal loan? [Archive]

View Full Version : Where can I get halal loan?

Umm Ammar

25th June 2007, 05:29 PM

Salam alaikum brothers and sisters, I would like to ask if anyone know about halal loans available in London? I heard that Islamic Bank of Britain`l loans are not halal as they have fixed rates... I would appreciate any help, may Allah reward you.

aburasheed

25th June 2007, 09:05 PM

http://www.moneyweek.com/file/14451/can-london-dominate-islamic-finance.html

I heard a lecture from Ghassan Barqawi (http://www.onlineislamicstore.com/a4628.html). It seems that a lot of banks claim to be shariah complaint these days, but if you investigate it carefully it turns out to be false. He recommended a few banks (not on the CD) but all of them are US based.

Make a list of the so-call "shariah compliant" banks and ask scholars who are familiar with the financial system in UK and get their opinion.

Umm Ammar

26th June 2007, 10:12 PM

Jazakallahu khair for the advice. Wassalam.

morbius

27th June 2007, 11:50 AM

27th June 2007, 12:16 PM

Could somebody explain to me how those shariah complaint loans work exactly?

From what I understand, it is not allowed to loan money with charging interest, but why would bank loan you money if they don't make any profit out of it?

...out of the kindness of their hearts ;)

No, not really. The world of Islamic finance isn't any less ruthless- or even much more Islamic- than the other part of the financial world. It's all hocus pocus, misleading terminology and hey presto! Interest becomes permissible.

MosDef

27th June 2007, 12:39 PM

They call it a different name.

Playing games.

Umm Ammar

27th June 2007, 08:33 PM

Dear Morbius, read this, please and you can search Islamic websites about interest (or you`ll find it as riba in Arabic), they explain beautifully why interest is not allowed in Islam, as God`s perfect law, it you really look into it and want to understand, you will see why it is one of the major sins in Islam.

Some so-called Islamic financial institutes do the same as non-Islamic ones and call it another name, BUT of course it is not allowed... it does not make it Islamic...

Only because some muslims allow it, it doesn`t mean ISLAM allows it and Allah allows it, everything has to be done in accordance with the Islamic Law which comes from the Quran and the the example of the Last Prophet (saws) - the sunnah.

You will find that the real Islam is different from what some muslims do, as some follows their interest or desire and some has not enough knowledge. If they do something it may oppose what Islam really says...

http://www.islamicawakening.com/viewarticle.php?articleID=1291&

morbius

28th June 2007, 01:41 PM

Ibn Abul Ma'ali

11th July 2007, 12:58 AM

This is a very controversial subject.

Ushery is not only forbidden in Islam, but also in Christianity and Judaism. However, it is very practical and it allows huge economic growth of society. If Muslim countries would stop allowing banks to charge interest, their economies would fall horribly behind those in the west (and they are very behind as it is).

no interest = no loans
no loans = small buying ability
small buying ability = poor economy

I can understand your concern....but also the flip side is that in the UK the personal debt is somewhere around the £1 Trillion mark, or even higher...and that is all due to interest based loans...which keep increasing and increasing and increasing - the similitude of the growth of interest is much like entropy which occurs amongst a collection of wires. Leave them for a while, and soon they tangled, but you haven't touched them...and somehow they have just tangled themselves...undoing the tangles take ages, and if your not careful, the tangles become worse...that is what falling into an interest based debt is like.*
The word Mortgage, literally means 'grip of death'....a strange name for a loan to buy house don't you think?

In Islam, the best use of money is to either loan it out, or invest into the community, so that it stays fluid and keeps the economy alive. Just sitting in the bank collecting interest doesn't benfit anyone.

It is a huge debate, which is at the same time very interesing.

Go to this website to get a good in-depth look on the issue www.islamic-finance.co.uk.

Fi Amaan Allah

Wassalamu Alaikum

Ibn Abul Ma'ali

*An example based on the works of Tarek El-Diwany, in his book 'The Problem With Interest' - more information available at www.islamic-finance.co.uk

morbius

11th July 2007, 10:41 AM

I can understand your concern....but also the flip side is that in the UK the personal debt is somewhere around the £1 Trillion mark, or even higher...
In the current economic system money is debt. No debt means no money. You can get more in information at www.moneyisdebt.org

and that is all due to interest based loans...which keep increasing and increasing and increasing - the similitude of the growth of interest is much like entropy which occurs amongst a collection of wires. Leave them for a while, and soon they tangled, but you haven't touched them...and somehow they have just tangled themselves...undoing the tangles take ages, and if your not careful, the tangles become worse...that is what falling into an interest based debt is like.*
The word Mortgage, literally means 'grip of death'....a strange name for a loan to buy house don't you think?
Yes, it is a rather cruel system in a way, but it also has its advantages. One of the most important is a huge boost that it gives to the economy, allowing people to acquire more goods that they would otherwise be able to afford.
Of course, it’s a bubble that can not be endlessly inflated and it will need to be replaced by a more realistic financial model in the recent future or there will be catastrophic consequences.

In Islam, the best use of money is to either loan it out, or invest into the community, so that it stays fluid and keeps the economy alive.
Nobody wants to loan you money if it doesn't make them any profit, except for your parents. Expecting that people will risk their money if it doesn’t bring them any benefit is just silly.

Just sitting in the bank collecting interest doesn't benfit anyone.
Actually, interest you get from the bank is part of the profit they make by loaning the money you trusted them with.

Abu Dharr Al Kashmiri

11th July 2007, 12:50 PM

For more info on Islamic Finance (http://www.darululoomkhi.edu.pk/fiqh/islamicfinance/islamicfinance.html)

Ibn Abul Ma'ali

11th July 2007, 08:53 PM

In the current economic system money is debt. No debt means no money. You can get more in information at www.moneyisdebt.org

Explain yourself! If I get a job, and pay rent or live in my parents home, and live within my means, do not have a credit card, and am not in need of any loans, then my money is my own, and I don't owe it to anyone! By the way, did you make that URL up, as it does not exist - no such website!

Yes, it is a rather cruel system in a way, but it also has its advantages. One of the most important is a huge boost that it gives to the economy, allowing people to acquire more goods that they would otherwise be able to afford.
Of course, it’s a bubble that can not be endlessly inflated and it will need to be replaced by a more realistic financial model in the recent future or there will be catastrophic consequences.

People do not need to buy extravogant items which they can't afford...if they have the basic necessities of life, then it is enough...falling into debt put's strains on families, relationships end over debt, houses are repossessed, people commit suicide and others turn to farud and crime to further supplement their earnings.

Yes, the only other financial model system that can save the world is the Islamic Financial System. The current financial system was born from greedy, manipulative money lenders in the middle ages, who lent out more than what they had!

Nobody wants to loan you money if it doesn't make them any profit, except for your parents. Expecting that people will risk their money if it doesn’t bring them any benefit is just silly.

Well, you see, in Islam, everything is linked together. A loan is different from an investment. When someone needs a loan, then it is an Islamic duty for one person to give another person what they are able to, for a set period of time. Actually the longest verse in the Qur'an, in Chapter 2 - Al Baqarah, verse 282, is all about writing down a contract between two parties when a debt is being lent from one person to another. It is truely an amzing verse to read and reflect on!

Actually, interest you get from the bank is part of the profit they make by loaning the money you trusted them with.

It is money being made from nothing...it is stagnant money, going stale...not really benfitting anyone. Better to get into the economy and help it grow.

Fee Amaan Allah

Wassalamu Alaikum

Ibn Abul Ma'ali

morbius

12th July 2007, 10:38 AM

Explain yourself! If I get a job, and pay rent or live in my parents home, and live within my means, do not have a credit card, and am not in need of any loans, then my money is my own, and I don't owe it to anyone! By the way, did you make that URL up, as it does not exist - no such website!
Sorry, a slight typing error.
http://www.moneyasdebt.net/

People do not need to buy extravogant items which they can't afford...if they have the basic necessities of life, then it is enough...falling into debt put's strains on families, relationships end over debt, houses are repossessed, people commit suicide and others turn to farud and crime to further supplement their earnings.
That is a very biased way of looking at it.
This year I took a loan to buy a car. Car allows me not to lose three hours in the public transportation every working day and the time I save allows me to do some extra outside work, so basically car is paying off itself. If I didn’t get a loan it would take me years to save enough to buy a car and I would miss all that available work. So, an interest loan is not necessarily a bad thing.

Yes, the only other financial model system that can save the world is the Islamic Financial System.
That's a good one. :)
Islamic Financial System actually expects people to give money to others and get nothing in return. Yeah, that’s going to happen.

The current financial system was born from greedy, manipulative money lenders in the middle ages, who lent out more than what they had!
I more-less agree.

Well, you see, in Islam, everything is linked together. A loan is different from an investment. When someone needs a loan, then it is an Islamic duty for one person to give another person what they are able to, for a set period of time.
We have tried something relatively similar in communism and I can tell you from expierience that it doesn't work.

It is money being made from nothing...it is stagnant money, going stale...not really benfitting anyone. Better to get into the economy and help it grow.

If there ever was a financial system that makes money move it's the system we use now. In fact, if money would ever stop moving, the system would colapse on itself. Watch carefully the flash I've linked above.

Ibn Abul Ma'ali

12th July 2007, 08:31 PM

That's a good one. :)
Islamic Financial System actually expects people to give money to others and get nothing in return. Yeah, that’s going to happen.

The only answer I can give, is that when a certain thing called Imaan is present, then yes, it is possible, and yes, it has happened, still does happen, and will continue to happen! This wealth which we have is not ours anyway, it has been entrusted to us as a blessing...He who Blesses us with it, can just as easily Take it away from us...it is a temporary form of property...after death we shall leave it behind...and so it will continue it's passage through many people's hands, never actually being possessed for more than any person's lifetime.

We live and learn

Fee Amaan Allah

Wassalamu Alaikum

Ibn Abul Ma'ali

Mansoor Ali

16th July 2007, 01:11 PM

it is a rather cruel system in a way, but it also has its advantages. One of the most important is a huge boost that it gives to the econom

The only people to benefit from the financial system are the bankers who charge interest on loans which were nothing more than debt to start off with. Charging interest increases the domination the bankers have over the rest of the people.

In the UK, because of interest, the national debt increased from £16 million in 1698 to £885 million in 1815. By 1945 it increased to £22.5 billion. Currently it is £1 trillion.

morbius

16th July 2007, 05:00 PM

The only people to benefit from the financial system are the bankers who charge interest on loans which were nothing more than debt to start off with.
It benefited me quite nicely, I got a car.

In the UK, because of interest, the national debt increased from £16 million in 1698 to £885 million in 1815. By 1945 it increased to £22.5 billion. Currently it is £1 trillion.
You were not paying attention to the site I've linked above. Money is debt. No debt means no money.

cili

8th August 2007, 11:06 AM

There are so many ways to generate money. Business is one. Read about Al MUdhorobah and Al MUshaarakah.

Lending money is not.

muwahhida

9th August 2007, 08:56 AM

assalamualaikum wa rahmatulaahi wa barakatuhu

i need help! im going to uni this year inshallah and i wanted to know if the student loan that they offer is permissible to take out. They say the loan doesnt incur interest but depends on the rate of inflation. i dont have the money to pay for my course :( are the loans that banks offer really halaal?

please help, im sure there are some students here..what do you do to pay your fees?

jazakallahu khair

fi amanilla

Abu Dharr Al Kashmiri

30th October 2007, 02:45 PM

Asalaam'alaykum,

can any of the senior brothers/sisters look through this guide (http://www.islamic-finance.ir/Articles/primer.pdf) for Islamic finance? Any feedback would be welcome.

Abu Ikrimah

29th November 2007, 09:19 PM

Try Barclays.

According to some scholars their loans are perfectly halal.

And who are we to argue :D

ibnYaseen

29th November 2007, 09:42 PM

To the bro/sis going to uni: to help finance my Uni time I took out student bank accounts from all the major banks, they give you a 4-5 year interest-free overdraft (about £1,000+ each for year one)... you've instantly got about £4,000 interest free to spend. Work the holidays and weekends and keep paying back what you spend. After you finish uni, get a job and work full time and pay off all the remaining the debt, despite having probably about 2 years to pay it -- as the sooner you pay it the better for you. No interest involved and its the quickest easiest way to have access to spendable money.

abuyasin

11th December 2007, 09:45 PM

Subhan Allah brothers and sister careful with the words HALAL and Haram and never use it unless it is proven fact by Verse from the quran or hadith or the reliable scholars.

In regards to the Riba remember one thing Allah SWT never said it is a sin but he said DECLARATION OF WAR so do you want to take your chances?

RIBA means any loan which returned with interest simple as that so you buy house or borrow money or buy a car and the value is £££ you just pay the exact £££ back without any peny extra that means £££.01 you are in trouble

other issue been in the middle of the wrong doesn't make it RIGHT and for us been in a time the truth hidden in the middle of falsehood we better be extra carefull with these temptations.

Al-Imran

12th December 2007, 12:24 AM

Here are some videos related to riba'.

Part I:
http://www.youtube.com/v/_dmPchuXIXQ

Part II:
http://www.youtube.com/v/lBZne09Gf5A

How do I embed the youtube videos?

Abu Dharr Al Kashmiri

12th December 2007, 12:28 PM