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Islamic Finance Week 2009

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I got this in my email inbox today. What do you guys think?

Should we all be supporting this "Halal" banking system?

 

--------------------

 

Assalamu Alaikum

 

I pray that you are well. The first-ever Islamic Finance Week begins on the 1st of June 2009. IFW is a national celebration of Islamic banking and finance, and you can find out more by visiting ###### .islamicfinanceweek. com.

 

You can also vote for the best Islamic Finance products by clicking on the link below:

 

http :// ifw.questionpro. com (remove the spaces)

 

Your vote is very important. This is your opportunity to tell the Islamic finance companies exactly how you feel about their products and services. The most prestigious award is for "Customer Service Excellence" - which recognises the Islamic finance providers who offer the best level of service to their UK customers.

 

If you have any questions about the Islamic Finance Week project then please contact us by email: info(at)islamicfinanceweek. com. Feel free to forward this message to any of your friends who you think may be interested in helping to choose the best Islamic finance products in the UK.

 

Yours faithfully,

 

Junaid Bhatti

Chair of Judges

Islamic Finance Week

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... What do you guys think?

Should we all be supporting this "Halal" banking system?

 

--------------------

 

 

 

... The first-ever Islamic Finance Week begins on the 1st of June 2009. IFW is a national celebration of Islamic banking and finance, ...

 

 

 

 

... vote for the best Islamic Finance products by ...

Your vote is very important. This is your opportunity to tell the Islamic finance companies ... ... who offer the best level of service to their UK customers.

asSalaamu'alaykum.

 

It's about the Islamic Finance Week in UK.

 

 

While we come from many different countries, to me, it should be added with "UK" in the topic title. sorry to say.

 

Ofcourse we should support it.

 

At least, we should open an account. Formerly i put my acc.no. in my signature here, as a fact that we do supporting.

Edited by MarineLiner

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I'm sorry but this Islamic Banking System is nothing but back door Usury. They are deceiving Ummah in the name of Islam. If you study their system then you'll find that there is no difference between Islamic Bank and Jewish Banks.

 

They give you money and add their fixed income on it which is wrong. Tell me any business which always give profit that too in a fixed ratio.

 

If you want to purchase a property from third party then they don't give you cash. What they do is they them self purchase the property add the fixed profit [back door usury] and resell it to you.

 

Many will come forward and argue that it is allowed in Islam and then my question is first you study properly what is allowed and what is not allowed.

 

Is it really the way Rasoolullah Sallallahu alehi wa sallam described? No my brother No.

 

Only actual owner of the property is allowed to sell its goods at higher rates if he is selling it on credit. Islam prohibited riba to prevent the corruption in the economy and to keep the balance between the people.

 

These Banks never make any loss by entering into such types of transactions. Even if you delay their installment then they charge you penalty which is haram in Islam. What they do is that thew fool you by saying that they will donate the penalty amount.

 

My only question is "Does Haram become Halal if you earn it to donate it? No my brother giver and taker both are sinner in that case.

 

These Banks frustrate the purpose of making Usury haram. These Bankers getting richer and richer because no risk is involved.

 

Plz. ask for any clarification.

 

wassalam

 

Muhammed Shadab

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... If you want to purchase a property from third party then they don't give you cash. What they do is they them self purchase the property add the fixed profit [back door usury] and resell it to you. ...

asSalaamu'alaykum.

 

 

 

For renovating my house, i shoud "sell" my house to them (Bank Mu'amalat Indonesia), so i got the money lets say 15 and then i "buy back" my ex-house by installment within 5 years with the total become 26.

 

 

But when i paid late, they didn't charge me, they only called me to ask is everything alright with me.

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Brother

 

It is all backdoor entry. If their only intention is to give you money without interest then why don't they give you cash?

Why should they sell you your house after 5 years at prefixed amount?

Why should not they sell it in open market at higher price?

Once you have sold the house then why would you renovate it?

 

They simply add fixed interest and make agreement with you to resell your house to you. What is the guarantee the after 5 years price of house would be similar mentioned in the agreement and not more or less?

 

Brother little application of mind will clear everything. This is back door riba only.

 

Have you ever thought that once you sold them your house then why do they allow you to live in it? Will you pay them rent for 5 years?

 

Are you aware that if you mortgage something then as per Islamic law mortgagor have no right to use it, otherwise it will be considered as riba?

 

Why do they always add profit in their money at fixed rate? Why they never make any loss? Tell me any business in the world which make profit at fixed rate?

 

Brother this is fraud of these so called Islamic Banks. They are deceiving you in the name of Islam and many ulemas have also given fatwas in their favor without understanding the matter.

 

May Allah expose the frauds of hypocrites and Kuffars

 

Wassalam

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As becoming usual now, brother Muhammed is coming in with good intentions, but mixing wrong with right information. First let me retouch on the most prominent wrong pieces of information:

 

What they do is they them self purchase the property add the fixed profit [back door usury] and resell it to you.

Adding a fixed profit is not back door usury, and actually it is permissible and valid without disagreement amongst scholars. You are correct however in that they don't have a right in charging late fees, but most Islamic banks don't do that anyway.

 

Only actual owner of the property is allowed to sell its goods at higher rates if he is selling it on credit.

Incorrect, NO ONE can have two different prices between cash and credit. THAT is usury.

 

Are you aware that if you mortgage something then as per Islamic law mortgagor have no right to use it, otherwise it will be considered as riba?

Not if the mortgage provider accepts it, in which case it is permissible, and has nothing to do with the payments. If the mortgage provider forecloses on the property they can withdraw that consent and naturally ask any inhabitant (whether mortgage taker or otherwise) to leave as they arrange for the repossession.

 

Now, the correct things that Mohammed did bring up and I do join my voice here to inform the brothers and sisters on this forum is that Islamic banking today indeed has broken many Islamic regulations of God and his prophet -pbuh-, and you should be aware about a few things that are haraam, even though many Islamic banks provide them or use them:

 

For renovating my house, i shoud "sell" my house to them (Bank Mu'amalat Indonesia), so i got the money lets say 15 and then i "buy back" my ex-house by installment within 5 years with the total become 26.

- That is in fact not permissible in Islam, because it is a derivative of Eina sale (buying something on credit and reselling it back on the spot for cash at a lower price from the same trader as prearranged) which is not permissible in Islam and considered masked usury. The buy-back clause at a future date with a set price is also not permissible in Islam so these arrangements have multiple violations.

 

- Providing cash under a refinance scheme is not permissible in Islam even though some Islamic banks do it. As a matter of fact, I haven't found a single Islamic bank providing cash loan without it being outright usury or masked usury. This also includes refinancing without dispensing cash, as in changing the tenure of your mortgage or extending it in return for more payments and a higher final price.

 

- Late fees are not permissible in any form. Administrative fees of any kind that do not represent any percentage or ratio of the amounts transacted are permissible.

 

- Buying a product or home from a supplier and reselling it back to you is permissible to the bank, however services cannot be financed like that under Islamic rules, because the bank cannot "buy" the service and then "resell" at a profit since they don't provide the service. It violates the "payment and possession" rule. Financing school fees for example is not permissible because the bank does not "take possession" of your child's education and then freely provides it to you for a higher price yet on installments.

 

And God knows best, and may we be spared the evils of greedy bankers who found illicit muslim figures to sit on their boards and endorse the validity of these loansharking tactics.

 

Sam

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