Loans of Islamic banks in the balance

Loans of Islamic banks in the balance

Loans of Islamic banks in the balance

It is important to note that the loans in general and personal in particular in banks is a key element and a vital factor in the bank's relationship with the customer, and continued the relationship between banks and customers from the beginning of its work without reducing the importance of meeting the various needs of the customer, including certainly personal loans that the customer from To obtain funds for various purposes of banks in a package of conditions agreed between the parties to the extent that it has become a clear law in banks, but it is still not found in Islamic banks, where a major question arises in relation to the reality of concepts of Halal and Haram. And the question arises among the borrower: Is it halaal or haraam, how and why ?. Is the Islamic Bank loans forbidden or halal ?, meaning when the bank pays the price of the thing instead of the buyer, and then the bank to sell the thing to the buyer at the same time a larger amount paid by the buyer over a period of time.





It is known that the initial answer is that the loan is interest-bearing riba, which is haraam, and the Islamic bank does not lend. Rather, it does the shar'i murabaha, which is to buy the commodity and then to sell it to the customer with interest. If this happens, the bank bought the commodity and then sold it to the customer. This Murabaha is valid, as is believed by a large number of researchers and specialists. "I want to know the difference between Islamic Bank loans and ordinary banks," he said, referring to some skepticism that Islamic bank loans are halal, given that the Islamic bank takes a percentage of loan customers, even if it is lower than normal banks.

The majority of Islamic banks maintain that they do not deal in loans at all. The Islamic Bank's resources are mainly provided by its depositors according to the form of the legal Mudaraba contract. The depositors represent the owners of the bank. The bank is a worker in the money or a speculator. Of the return if realized, and if the loss occurs fully fall on the depositors. On the other hand, there are those who believe that the issue of loans in Islamic banks, especially with regard to the issue of interest is only a trick to the truth and the process of selling and buying carried out by the Islamic Bank formality without real content does not reflect the truth associated with jurisprudence and Islamic legislation. And is not beyond the formality changes. Because the buying and selling process is not optional, ie, the bank does not buy cars, for example, on its own and then sell at a more expensive price, but comes to the person who wants to buy and ask the bank to buy it and then the bank to make a contract between the bank and the person even before the bank to buy, Car bank. Some point out that this issue is not without ambiguity for several reasons. For example, after the bank buys the car, the sale to the borrower is compulsory, meaning that the person does not have the freedom to back down after the bank buys it. The person is free to change his mind after the merchant buys the goods, but the bank sells the car to the person before buying it from the other party, meaning that the bank does not own it, so how does the bank sell something that it does not own?

Wide spread

It has become clear that Islamic banks are rapidly spreading and are continuously achieving advanced levels of success. Many conventional banks, including foreign banks, have adopted Islamic financing programs, despite the various criticisms and criticisms of Islamic banks from more than one side or customers. However, the idea of ​​personal loans is still not mentioned in the programs of Islamic banks and their financing operations, on the basis that personal loans of a financial and monetary nature are included in ribaa. In Islamic legislation there is no room for riba. (Peace and blessings of Allaah be upon him) said, "The war against the perpetrator is something that he stressed." He said: "One dirham of riba to Allaah is more severe to Allaah than such and such a prostitute. Therefore, beware of the impact on this haraam except that you are obliged to do so according to the shar'i conditions of necessity. In general, it is possible to refer to three types of banks that bear the name of Islam. These are: First: Islamic banks that are exclusively supervised by a committee of scholars who control their transactions. They are scholars of trust and virtue. There is nothing wrong with dealing with them. Banking transactions. And second: the banks of riba in the Muslim countries opened Islamic branches supervised by the scholars of the Muslims and have separate accounts from the riba branch, although we did not know the list to verify the validity of its practice, but we trust the Muslims based on the scientists and supervisors of its work, we deal with and accept what is hidden from Our eyes to God and then to our trust and our ratification of the Muslims based on them, but prove to us otherwise. Thirdly, foreign riba-based banks have opened Islamic branches, unless there is a necessity. If we do not know about their work to verify the truth of their statements or inform the scholars about this by supervising these transactions, dealing with them is at least a suspicion that prevents Muslim clerics from dealing with them If not necessary.

Islamic personal loans

Have you ever received an Islamic loan? This is a constantly present question in the mind of the customer. Some may be surprised by the description of a loan as Islamic because it is stable in the mind that loans are riba-based, but with the increase of financial surpluses in Islamic banks, particularly in the Gulf countries. Such as Murabaha, Musharaka, Ijara and Istisna'a. Some of them are the subject of a jurisprudential dispute such as organized tawarruq, which in the end means the provision of liquid money to a person who needs it through pledges that some call legitimate and describe. Others as a sham,Some say it is a circumvention that is like riba, and others say it is a circumvention to disobey usury. With different jurisprudential attitudes towards the regulatory tawarruq of individuals, many Islamic banks have rejected this idea as a kind of usury, as approved by other Islamic banks. Many clients seek tawarruq, ie, to obtain these Islamic loans, to avoid their riba-based transactions. They often need these loans to finance special needs that they can not finance by other Islamic means such as Murabaha, Musharaka, Ijara and Istisna'a. Traditional. Some Islamic banks rely on the idea of ​​buying these debts and rescheduling them on the basis of a formula they believe is legitimate.

Legal circumvention

According to Dr. Muhamad al-Jarhi, a banking expert, tawarruq in its current form is haraam by the Islamic Fiqh Academy, which is the supreme authority in this context. However, some banks are "manipulating" new formulas such as Murabaha, which is an attempt to free Islamic finance from its content. That if the customer went to the Islamic bank and asked for 20 million dirhams, for example, and the bank agreed to give him the amount to be recovered later 22 million dirhams, this is clear riba. Al-Jarhi said that there are many Islamic alternatives for personal finance such as leasing services. The bank agrees with the providers of some health services, education, travel and even weddings. The bank buys these services from its suppliers at a current price and sells them to customers at a later rate. Customer. He pointed out that the Accounting and Auditing Organization for Financial Institutions in Bahrain recently issued a standard that permits Tawarruq, which will re-discuss the issue; because the decision did not represent the majority of the views of the members of the Commission.

Loan definition

Banks sell what they do not have

In turn, Dr. Lahim Al-Nasser, a specialist in Islamic banking, points out that the origin of tawarruq is not disputed, but that the dispute over tawarruq is currently regulated in banks. The bank regulates the process from the beginning of the client's entry until he gets the money. The customer does not see the item, does not sell or buy it, but only waits until the money is transferred to his account. Therefore, many customers go to the banks asking for loans directly. They ask about the early repayment methods, and the biggest problem is that the bank arranges it as A loan, a trader who buys the commodity from its supplier At the same time to another trader maturity of 3 days, and then sell it to customers, and this hedge is illegal; because the bank sells to its customers what does not have, and the same commodity does not come out of its stores, noting that the bank distinguishes between the Murabaha customer and Tawarruq customer, The bank requires the customer to sign the loan agreement and to authorize the purchase until the bank ensures that the customer will not actually ask for the item, so as to avoid the low or high price. Some Islamic banks have found a continuation of the jurisprudential dispute over tawarruq to provide these transactions and expand them, while others saw amendments to the form of transactions to become more compatible with the sharia.

Personal finance product

Dubai Bank, which has been transformed from a traditional bank into an Islamic bank, has launched a special product based on Tawarruq, a personal finance service. The bank's finance manager, Ahmad Al Shall, said that the bank's financing portfolio, which ranges from individual and corporate financing, increased significantly last year to AED 8 billion . He pointed out that they are distributed among a variety of products such as Royal Bank for real estate finance, vehicle financing, and Sind for personal finance, in addition to covered credit cards. When the client asks for financing, we look for the optimal form for him, whether through Ijarah, Murabaha or Istisna'a. If all of these alternatives are not possible, we use the "Sanad" personal finance, which is a small part of the total funding. Which is seen by many as a new step in the evolution of Islamic banks and an indicator of the ability of Islamic banks to achieve new levels of success in light of changes in the world of banking, and its ability to meet the various requirements of customers in a constantly changing world, despite all the criticisms And notes that do not deny the ability of the Islamic banking world to provide a variety of solutions suitable for customers.

Riyadh.