Q: How is Islamic (Shari’ah) finance any different to normal commercial bank finance? In both types of finance, you pay more money than you initially borrowed. In fact, in most cases, when you compare the two options, Islamic finance costs more. Is Islamic finance really halaal?
Q: I am from India. Here car loans (financing) is available in such a way that banks will pay the complete amount to the car dealers not to us. Is it lawful to finance a car from the bank? If the car original price is four lakhs and the bank earned the profit and fixed the amount to 5 lakhs, and I am told to pay this 5 lakhs in instalments (partly) of 36 months in equal amount. Please tell me, is this scheme valid according to Shariah? Does it come under muraabahah? If the car dealers itself has a financing company, is it permissible in this case also?
Q: Is Musharakah financing halal in islam? what are the main things to be consider when looking to get halal mortgages?
Q: I am writing to seek you advice in relation to procuring a motor vehicle using a leasing arrangement. Which (if any) of the following options are a halaal option of buying a motor vehicle through a salary packaging arrangement?
Novated Lease
Finance Lease
Hire Purchase
Chattel Mortgage
In particular, I wish to know if Novated Leasing is Halal? While you may already be aware on how Novated leasing work, however I ahven taken the liberty of copying and pasting an explanation from the internet for your consideration (which is exactly how it works in my current place of employment);
Novated Lease Explained:
"A novated lease is a three-way agreement between an employer, employee and a financier whereby an employer leases a car on behalf of the employee. A car is leased in your name and running costs such as fuel, insurance and maintenance are all included in a single lease repayment, paid for using a combination of your pre and post-tax salary. This means you could reduce your taxable income and pay less tax"
If none of the above are halal, please advise of an alternate halaal finance option applicable in the West. I look forward to your guidance in this matter.
Q: Is it permissible to saver money in a savings account in an Islamic bank? We are only using the actual money which we have saved. Whatever savings profit we receive from the bank, e.g. 2% etc. will be given to the poor
Q: I see many Islamic banks charge everything like other banks, they are just changing the name. So, isn't it haraam to take a loan for a car or anything else from them?
Q: Is "musawamah" in Islamic banks halal or haram. I mean Riba-Free or not? Kindly guide. In our country Islamic banks sell consumer goods according to them which they have stocked through this financing mode on installments. Kindly guide.
Q: Are we allowed to buy a house through Islamic Banking? Al Baraka Bank, Fnb Islamic Banking, etc.?
Q: Our community bank offers Shari’ah compliant home financing which is structured as follows:
1) The Muslim buyer will select the property and the bank will purchase it with a contract for immediate resale to the Muslim purchaser for a fixed amount that will include the bank’s profit.
2) The Muslim buyer will be given a fixed price that will not vary with interest rates.
3) The Muslim buyer will have to sign a contract to buy the house from the bank before the bank purchases the property from the original seller.
4) The bank states that they will take a loan on which they pay interest from a secondary source to finance such a purchase.
5) The bank states that the buyer will have to insure the property.
Is this form of finance permissible and Shari’ah compliant?
Q: Please may I enquire on whether it is permissible to finance one's vehicle by means of Islamic banking offered by FNB?