What does Islam say about loans?
In Islamic finance earning or profiting from lending money or taking money from anyone else is not allowed. Thus a bank or any Muslim cannot charge any kind of interest when they lend money to anyone in Islam. Renting an asset is permissible, but renting money is strictly prohibited in Islam. Thus there are some financial ways which are haram but a Muslim can finance a new or used car with Ijarah Finance.
How does Islamic vehicle finance work?
Everyone wants to how Islamic finance work and how it makes something that is not permissible in Islam permissible. There are few principles on which this whole concept of Islamic vehicle finances work which are as follows:
- The buyer chooses the car.
- Then he can make a request with Islamic Car Finance Australia.
- The Islamic bank will buy that car with its own name and but it will be given to the buyer who wants it.
- The person will pay monthly installments and that will include the profit too.
- When the payment is done the person becomes the owner of the car.
Ijarah Finance is the best place for Muslims to get Islamic loans in Australia visit our website to know more about us.
What is RIBA?
‘Riba’ (Arabic: ربا ,الربا، الربٰوة ) basically means “usury” or gaining from exploitative gains from trading or business. RIBA has been condemned in Qur’an (3:130, 4:161, 30:39 and perhaps most commonly in 2:275-2:280) also it has been mentioned in hadith.
While Muslims agree that riba is prohibited, not all agree on what precisely it is. It is often used as an Islamic term for interest charged on loans, and the belief is based on that there is a consensus among Muslims that all loan/bank interest is riba forms the basis of a $2 trillion Islamic banking industry. However, not all scholars have equated riba with all forms of interest, or agree whether its use is a major sin or simply discouraged (makruh), or whether it is in violation of sharia (Islamic law) to be punished by humans rather than by Allah.
At last, we can say that there any kind of finance is prohibited in Islam but with Islamic Finance Australia you can finance your car with ease and without worrying about haram or halal.