Islamic Finance

Q: Is there any way to take a loan in an Islamic way? What about Islamic banks?

Q: I want to purchase the new car from the bank. The price of the car is (lets say 500,000 Rs) in one shop and 550,000 Rs in other shop and from the bank it is 600,000. Each of them has different value based on the profit they take from the buyer. (Basis that every one has the right to get the maximum benefit based on the investment). Please guide me. Can I take the car from the bank?

Q: Could you kindly tell me whether Islamic banks are halal if I decide to buy a house? As far as I know even Islamic banks are not 100% halal. How do I know which Islamic banks are genuinely Halal, what are the signs?What do I need to to consider? Most of them claim to be Islamic and according to sharia law but it is sad to know that it is the same as taking riba at the end.

Q: I have a question regarding Guidance Residentials (Islamic Home Financing) is it Halal in Islam? Mentioned below is their method. Co- partnership. On $100,000 investment Customer will put between 5 to 30 percent down depends on credit. Suppose monthly payments is $600. $400 belongs to them as a rent of the house $200 deduct from actual amount for first month. Second month will be $399 rent and $201 will be deduct from actual amount. As this method goes till end of the last payment. Kindly advise what will be the shar'ee law that apply on that. There website is Guidenceresidentials.com for more information. Hope to hear from you soon.

Q: I want to know that meezan bank saving account is good or not. All the details are included below.

Meezan Bachat Account is a unique saving account that provides high expected monthly returns with the flexibility to withdraw savings if needed. Meezan Bachat Account offers a higher expected rate of return with nearly the same convenience and service of a regular savings account.

Meezan Bachat Account can be opened by Salaried or Self-employed, Housewives and Retired individuals.

On agreeing to become a Meezan Bachat Account holder, the customer enters into a relationship based on Mudarabah with Meezan Bank. Under this relationship, the customer is an Investor (Rab-ul-Maal) and the Bank is the Manager (Mudarib) of the funds deposited by the customers. The Bank allocates the funds received from the customers to a deposit pool; funds from the pool are utilized to provide financing to customers under Islamic modes that include, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharkah.

Minimum investment required to open an account is Rs. 50,000/-

Maximum balance limit (threshold) for getting a higher profit weightage is Rs. 25,000,000/-

Free issuance of Cheque Book

Free issuance of Pay Order

Free Online Banking service at all Meezan Bank branches

Free Internet Banking facility

Profit will be calculated on the Daily Product Basis

A lower weightage will be applicable for profit calculation if the daily

Closing balance of the account exceeds a specified threshold (currently Rs. 25,000,000/-)

Profit payment is made to your Meezan Bank account on a monthly basis.

Q: I wanted to ask that I heard from the son of mufti taqi usmani that islamic banks leasing for cars is halaal and so did I read in the book of mufti taqi usmani about murabaha that the bank can charge profit or mark up if paid in instalments. So I wanted to ask that the banks do the same but they write interest and so do these finance companies they buy you the car and charge interest if paid in instalments. So I am confused.

Q: I have 2 questions and please give me a satisfactory answer:

1. I am a teacher in Muscat and I need a car. I can't pay full price so decided to go to bank meethaq which is an Islamic bank as I don't want to pay interest. The car is of 9000 rials and they will finance up to 80% of the amount and I will pay 20% of it as  down payment. 20% of 9000 is 1800. So we have 7200 left and they lease it for 5 years but if I calculate the instalment, its 120 rial but they told me that it will be 140 rial and said that its the devaluation 3.3% we are charging which is allowed in Islam and is murabaha in Islam. So please tell me is it halaal or haraam?
2. I went to honda motors and they said that they have car of 9000 rials. I will pay 10% and the rest they will pay and they charge interest but its like buying furniture on instalments. They say that its profit for them. So please clear my doubts and need a quick reply

Q: I want to get your opinion about Islamic banking in Pakistan. Is meezan bank a real Islamic bank in Pakistan or partially Islamic?

Q: There are many muslims turning to shariah compliant banks.

1. What is your view on using these kind of banks for buying or building a house? Would I be allowed to buy a house for my family using this service?
2. I have some money that I would like to invest in using their investment fund. Will this be permissible? They call the percentage they put in profit not interest. I want to make sure.

Q: I live in north America can you tell me which bank is Islamic banks for housing?