Religion
Part I :
CONCEPTION
1-1
1-2
1-2 Cont.
1-2 (Continued)
1-2 Continued
1-3
It is Interest free.
It is a Sharia compliant mode of transaction.
It is trade based.
It forbids any economic activity which is
haram in Islam i.e. it distinguishes transactions
between halal & haram.
Islam
Sharia
Aqidah
Akhlak
(Law)
(Faith)
Ibadah
Muamalat
No innovation
Is allowed
Doctrine of
permissibility
Islamic Banking
Sharia Compliant Contracts
Mutual
Consent
Avoidance of
Forbidden
transactions
Lawful
Objective.
1 - 6.6
What is Riba ?
1-4
1-4
1-5
1-6
&
b) Sale (Profit mark-up) or Rental method (Ijara,
Murabaha,Bi-muajjol)
1-6.2
* In case of Rental.
* In case if Sale
* In case of fixing sharing Ratio
1-6.4
1-6.5
This statement is most widely used by the proponents to justify the interest. I
hope, following quotations will give the answer;
Now, the other theory that in usury, borrower uses the loan
for personal use and not in productive purposes (and
reverse in case of commercial loans) hence prohibited by
Islam.
But, we see Mukhabara is a commercial loan used for
productive purpose yet the Prophet, pbuh, declared is
illegal.
The fact is, the Prophet, pbuh, in all his instructions
mentioned, Riba and never differentiated or specifies any
particular type of Riba.
Interest of conventional Banks is Riba & Haram for believers
this is the resolution of International Fiqh Conference
1956, 3rd OIC International Fiqh Conference 1976 & 2003,
Rabeta International Fiqh Conference 1984.
Head Office
Islamic
Investment
Profit
35%
Branch
Deposit
Islamic
Muda
raba
Branch
Deposit
Conv.
Alwadia
Profit
65%
Loan
Conventional.
Deposit
Conventnl
1- 6.9
1-6.10
1-6.10 Cont.
1 -6.11 What
Conventional Banking
It is Sharia Compliant
Thank you.