Taking a profit against a loan
Q: Is Islamic banking across GCC correct? they are referring to profit rate for car loan etc. Is this the same as interest? Am I safe to purchase a car through Islamic banking profit rate that they are referring. Bank says it is as per Shari’ah. Please help to sort this doubt as I am about to purchase a car and since I cannot afford full payment, I am preferring Islamic banking. Will I be in danger?
A: Taking a profit against a loan is interest.
And Allah Ta’ala (الله تعالى) knows best.
Read these QA to learn more..
- Can I get a percentage profit on a loan?
- Assalamu Alikkum, We have Islamic Bank here in UAE Providing Loan for Purchasing the Car, If we intersted in one car(Whether new or second hand) we should go to the bank with the seller(if new the dealer details and qutation from the dealer), then the bank will purchase the car from the seller or dealer and will sell to us with a certain profit, and the total amount(original price the profit taken by the bank) can be paid in installments. may i know this loan is islamic??(As the bank is not a car dealer or an auto dealer) Working in such an islamic bank is halaal?, particularly on this section. Thank You, Jazakallah Kheir
- Assalamu Alaykum, I am looking to attend university in September and was recently told by someone that taking out a tuition fee loan is Haraam. I looked into this on their website and found that after the first year of study the Student Loans company add interest as well as inflation. With the recent increase in university fees to £9000 per year, I would find it difficult to pay this off without actually taking out the loan. I have also looked into working part time while at university but this still wouldn’t cover it. I have asked several people who have already been through the system about what they have done and all of them have said that they have taken the loan out. I would appreciate if you clear this matter up for me. Shukran Jazakallah
- AOA sir my question is regarding intrest on investment i just want to know that my organization in which i m working is running different business for the welfare of its own employee it also gives an option to invest its employees money in the business and in june and december each year they review the progress and analyze their profit or loss n then they distribute the profit to all stake holders at the analyzed profit rates in %.my organization doesnt give loan to individuals or banks means all ur money is put directly in to business there is no penalty on withdrwing money at any time n there is no pre fixed profit rates means profit rates keep on variating as audited is this investment HALAL or HARAM
- From your previous answers I came to know that taking home loan is not permissible as per Shariah. But my case is different. I am working in Bangalore and have taken home for rent. In my native we have own house which is made of sand (mitti) without basement and we are living in that more than 10 years. Now we are planning to construct the house. The issue is I do not have that much money to construct house in one shot. Since I am getting good salary, I can repay the loan. Without taking the loan and want to construct the house, for me it will take more than 8 years. In this case; (1) Can I take the home loan to construct the home in my native? (2) If it is permissible, then can I build two or three floor building and give it for rent? (3) From the rented money can I pay the home loan? (4) Since I am employee of a software company, can I show this home loan for tax redemption?
- I am businessman, my business consist of rental incomes,exports,imports and local trading.And as per the indian state and central law various taxation if I go to pay the taxes then it will be very difficult to maintain my livelyhood,and as business is concerned I have fine tune with financial institution.If I am taking the loan than I get the benefits in taxation with the propotion of intrest and depriciation ratio.So can I proceed with loan,If yes, can I use the money of loan transfered in my account for my business purpose. 2. If I am taking loan with the best intrest rate and utilise the funds in earning and can make the profits in multiple after paying the installment the balance earned ammount and 30% of that If I distribute in the needy people can it be possible.Which category of people are suitable for this ammount. 3. Can I take my share in the profit earned as my skills and securities utilised for earning and at what extent can I take 70%. 4. What to do with the capital amount of loan sanctioned by bank after the loan is completed who can claim the needy people or me.