Today i am sharing a useful Discussion on Interest Free Islamic Banking. A Muslim From India has asked about Interest Free Islamic Banking in India and if it is not available what are alternative options?
Ekram
Dear brothers and sisters, Assalam Alaykum.
I heard that if any involved in interest or usury activity is chalenging the Allah and the rasol for the war.......
but,the present situation in India is not favorable for Muslims to be interest free.
Kindly tell me is there any Islamic bank / Islamic financial institute /Islamic mutual funds or Islamic life insurance companies in India?
How we can invest or deposit money in banks(Islamic) living in India.
SAULAT
it is not only situation of India but Saudi Arabia is also in interest based banking and economy
it will better that transfer your money in gold and pay jakat and do not accumulate money as it is over for you bread and butter.
Ekram
thanks brother SAULAT.
but, some times it becomes important save money in banks either for the security or for to buy some assets.
I think there will be some solution to this problem.
If all Muslims will be united ,then off course we can have such types of bank in India in near future.
Noor Ul Huda
if you earn interest on your savings, then best way is to give that money of interest to some needy person. dnt use it , IF you live in a place where by no means you can find interest free banking-savings
Ekram
thanks Noor Ul Huda.
but,I think it is also not allowed.
for more information regarding this watch this video(by dr zakir naik).
http://www.youtube.com/watch?v=G1QyyCzIYnM
Muhammad DaniYal
if we give interest to any poor .... would we get any reward in the life here after for giving the money of interest to needy people ?
Munaf
NO! we should NOT give with the hope of getting any reward but rather our intention while giving the interest money to needy people should be of removing ourselves from this extreme haraam money.
.
it is better to give charity in percentage wise i.e. 2.5% irrespective whatever halal we get from our daily life, weekly or monthly income or pocket money. this will be more pure and honest as well as will please Allah
Ekram
pleas suggest some solution with respect to India.
I am from West Bengal.
and what's Ur opinion about converting the money into gold as suggested by brother SAULAT.
Noor Ul Huda
convert your money into gold, or convert it into dollars, these two ways are safe as well as legal profit earning sources.
in both ways, your money will b in running state and you can earn on regular basis as well.
Ekram
how to convert it to the gold.
should be buy some jewellery of gold ?
what precautions we should we take why doing this.
please tell me in details
Noor Ul Huda
no, dnt buy jewelry, when in business, always buy gold bars. because those gold bars contain no impurity.
second thing, when buy gold, watch the market carefully for some days, to get the knowledge of price hike or fall etc.
always buy pure gold and if necessary get help from a person who is already into this business.
you may find the gold price fall after you buy gold, dnt get upset wait for some time, gold prices are so sensitive, they are on ever increasing rate now. so when you find the price highest---- in market after watching market carefully, then sell it.
same goes for dollar conversion, before getting into currency business, watch the market carefully, get the knowledge of currency hike and downfall etc. the global market rates. etc and then buy and sell.
mostly currency business goes like this--- you buy currency and the same day you sell it to get premium.
you can buy-sell as per your choice as well. find some broker or money exchanger to get further knowledge of the market.
SAULAT
Dear Ekram
I really much impress with you that you have spirit about Islamic economic module.
Dear in Islam there is no concept of bank because Islam strictly command to Muslim that do not accumulate money. Bank accumulate money but some people do not accept this truth
let have an example that Reserve Bank of India has trillion of rupee but still Indian people
sleep without food at night.
Today we live a tyrannical economic system where common people can not recognize the evil face of this system.
We are compel to be a part of this system but at least we can do what we deserve.
We have two way that either we say bye bye this system or be a part of this system but by heart oppose this system.
Interest is major sin in Islam and our total economy system is based on interest.
If you have more money than your live requirement then convert it into gold and secure it at your bank because we have no option.
Collect your interest and distribute it needy people without hoping any reward from ALLAH.
You should be confirm that all stock market, mutual fund, insurance and many more are based on speculation and manipulation.
So you need search out personally that what is truth behind this system because people do not believe about this fact.
Ekram
thanks Noor Ul Huda and SAULAT.
from where one should buy the gold bars?
I heard that some banks sells it,but I think if we buy it from a bank then we are supporting a interest based org indirectly?
Noor Ul Huda
dnt buy from banks, visit gold market and buy gold from there. that's the right place to buy gold.
Ekram
what about TAURUS ETHICAL FUND.
TAURUS claims that it's according to sharia.
http://www.taurusmutualfund.com/OurSchemes/taurus_ethical_fund.html
any idea?
Noor Ul Huda
brother itsa mutual fund, and what i know mutual fund is that it takes money from its customers, and invests in equity , i.e. in the shares and bonds of different companies.
i dnt know if in India or in any other country, one can find any company that runs its business based on sharia rules.
in every mutual fund, the customers get a premium, which is based on dividends on shares or coupons of bonds etc.
this equity fund provide TAX-SHIELD, which i dnt know why it provides. tax charges by govt. on infrastructure and other services is not a sin.
in my eyes, its just the same mutual fund like every other mutual fund org. its just using sharia 's name.
Nayab
In India, you can invest in gold easily with Gold ETFs. It's just like a mutual fund, with only difference being that instead of shares, the fund purchase and sells only gold. The value of the fund reflects gold prices.
There is however an element or risk, as you do not have physical possession of the gold and in case of a major economic catastrophe, the fund can default or run away with your money. The same is is there for mutual funds and shares as well. So physical gold bars and cons are safer, although buying, selling and storing it are hassles.
Ekram
I heard (almost 1 month ago ) that a committee or organismic has been formed to monitor sharia compliant funds.
any info about that?
Noor Ul Huda
brother ekram
being a finance student i am assuring you that , no matter what any organization calming, they cant get rid of interest.
the reason is, whether banks or mutual funds etc, they invest money is other businesses and give loans to others. they cnt do business if they are Islamic in nature.
no way in this world you can find a single financial institution based on Islamic finance. infact islamic finance is a subject of history now.
there is no concept of "FUTURE CONTRACTS" as per fiqah. we can not do business based on future contracts or terms/conditions. best is to have the tangible asset in hand. that's safe, and that's the best way to avoid any risk.
Nayab
+1. My thoughts exactly.
The present day capitalistic system is itself based in riba. Those trying to sell so-called "Islamic mutual funds" or "sharia compliant funds" including companies that operate in such a system are hoodwinking the masses (at least in India).
At least if these "sharia" funds limit their investment to companies that does not give or take interest and sell products that totally comply with sharia, it would have been understandable. But what these people do as a matter of principle is invest in companies that have less than 33 % debt. Since when did riba <33% become halaal?
Here is the list of companies that these "Sharia" funds invest in
http://www.livemint.com/2007/03/09034547/List-of-Shariahcompliant-firm.html
Just for an example, refer to the balance sheet of ACC Ltd, the 4th item in the list:
http://money.rediff.com/companies/acc-ltd/11510001/balance-sheet
ACC has secure loans worth 518+ crores. This is only an example. Most of the companies in this list have loans. The only exceptions are MNCs such as ABB, 3M, BOC, Ingersoll Rand, GlaxoSmithkine Cons, etc.
Them there are companies such as Infosys that figure in this list. The loans apart, providing support to banking and insurance companies form th core of Infosys business. Simply put, if Infosys ceased to partner with riba based banks in Europe and USA, it would in all probability shut shop.
This is the status of our so called "Sharia" funds.
SYED
Assalam Alaikum Brother, Good question though,
By Allah interest is definite haram and it is also not a matter of differences of opinion,
In various verses in Quran Allah Swt forbids usury and Rasooallah SAW have also forbid it in Various ahadith.
By just establishing Islamic financial institution and Islamic Banking it will not relive us from this evil of interest.
Interest based economic system is prevailing all over the world and whole world is in Clear Kufr including Muslim world. Only resumption of islamic Way of life would ease all muslims from the evil of Riba. After the destruction of Khilafah in 1924, Muslim Ummah find different ways to sneak out of obligation which is required from the ummah, Islam as an ideology which has its own Social System, Ruling system, Judgement System and Economic System. Islamic Banking system being a very small part of Islamic Economic System can't be established when their is centralized Riba Based system of any country.
And in Islam we don't follow what we like and leave what we dislike because Allah Swt has forbidden it in the Holy quran that: "Do you believe in a part of a scripture while rejecting the rest, What is the Recompense for those who do so except disgrace in this world and in the hereafter they will be consigned in Hellfire"
so in islam we don't take a part leave the other, we take the whole package. So Only establishing Banking system will not release us from the obligation of Resumption of islamic way of life.
We have been also Ordained by Allah swt to Cut the hands of the thief and stone the fornicator. This verses were revealed to Prophet as the obligation of Salah & Zakat were revealed and it is addressed to the ummah as the verses of Salah & Zakat is been Address, By Allah We can't sneak out from this obligation.
Only complete package of Islam(Social, Economic, ruling, Judgement System) have to be implemented in the world, Only then peace would return to the world.
Jazak Allah.
Ekram
Dear brothers and sisters, Assalam Alaykum.
I heard that if any involved in interest or usury activity is chalenging the Allah and the rasol for the war.......
but,the present situation in India is not favorable for Muslims to be interest free.
Kindly tell me is there any Islamic bank / Islamic financial institute /Islamic mutual funds or Islamic life insurance companies in India?
How we can invest or deposit money in banks(Islamic) living in India.
SAULAT
it is not only situation of India but Saudi Arabia is also in interest based banking and economy
it will better that transfer your money in gold and pay jakat and do not accumulate money as it is over for you bread and butter.
Ekram
thanks brother SAULAT.
but, some times it becomes important save money in banks either for the security or for to buy some assets.
I think there will be some solution to this problem.
If all Muslims will be united ,then off course we can have such types of bank in India in near future.
Noor Ul Huda
if you earn interest on your savings, then best way is to give that money of interest to some needy person. dnt use it , IF you live in a place where by no means you can find interest free banking-savings
Ekram
thanks Noor Ul Huda.
but,I think it is also not allowed.
for more information regarding this watch this video(by dr zakir naik).
http://www.youtube.com/watch?v=G1QyyCzIYnM
Muhammad DaniYal
if we give interest to any poor .... would we get any reward in the life here after for giving the money of interest to needy people ?
Munaf
NO! we should NOT give with the hope of getting any reward but rather our intention while giving the interest money to needy people should be of removing ourselves from this extreme haraam money.
.
it is better to give charity in percentage wise i.e. 2.5% irrespective whatever halal we get from our daily life, weekly or monthly income or pocket money. this will be more pure and honest as well as will please Allah
Ekram
pleas suggest some solution with respect to India.
I am from West Bengal.
and what's Ur opinion about converting the money into gold as suggested by brother SAULAT.
Noor Ul Huda
convert your money into gold, or convert it into dollars, these two ways are safe as well as legal profit earning sources.
in both ways, your money will b in running state and you can earn on regular basis as well.
Ekram
how to convert it to the gold.
should be buy some jewellery of gold ?
what precautions we should we take why doing this.
please tell me in details
Noor Ul Huda
no, dnt buy jewelry, when in business, always buy gold bars. because those gold bars contain no impurity.
second thing, when buy gold, watch the market carefully for some days, to get the knowledge of price hike or fall etc.
always buy pure gold and if necessary get help from a person who is already into this business.
you may find the gold price fall after you buy gold, dnt get upset wait for some time, gold prices are so sensitive, they are on ever increasing rate now. so when you find the price highest---- in market after watching market carefully, then sell it.
same goes for dollar conversion, before getting into currency business, watch the market carefully, get the knowledge of currency hike and downfall etc. the global market rates. etc and then buy and sell.
mostly currency business goes like this--- you buy currency and the same day you sell it to get premium.
you can buy-sell as per your choice as well. find some broker or money exchanger to get further knowledge of the market.
SAULAT
Dear Ekram
I really much impress with you that you have spirit about Islamic economic module.
Dear in Islam there is no concept of bank because Islam strictly command to Muslim that do not accumulate money. Bank accumulate money but some people do not accept this truth
let have an example that Reserve Bank of India has trillion of rupee but still Indian people
sleep without food at night.
Today we live a tyrannical economic system where common people can not recognize the evil face of this system.
We are compel to be a part of this system but at least we can do what we deserve.
We have two way that either we say bye bye this system or be a part of this system but by heart oppose this system.
Interest is major sin in Islam and our total economy system is based on interest.
If you have more money than your live requirement then convert it into gold and secure it at your bank because we have no option.
Collect your interest and distribute it needy people without hoping any reward from ALLAH.
You should be confirm that all stock market, mutual fund, insurance and many more are based on speculation and manipulation.
So you need search out personally that what is truth behind this system because people do not believe about this fact.
Ekram
thanks Noor Ul Huda and SAULAT.
from where one should buy the gold bars?
I heard that some banks sells it,but I think if we buy it from a bank then we are supporting a interest based org indirectly?
Noor Ul Huda
dnt buy from banks, visit gold market and buy gold from there. that's the right place to buy gold.
Ekram
what about TAURUS ETHICAL FUND.
TAURUS claims that it's according to sharia.
http://www.taurusmutualfund.com/OurSchemes/taurus_ethical_fund.html
any idea?
Noor Ul Huda
brother itsa mutual fund, and what i know mutual fund is that it takes money from its customers, and invests in equity , i.e. in the shares and bonds of different companies.
i dnt know if in India or in any other country, one can find any company that runs its business based on sharia rules.
in every mutual fund, the customers get a premium, which is based on dividends on shares or coupons of bonds etc.
this equity fund provide TAX-SHIELD, which i dnt know why it provides. tax charges by govt. on infrastructure and other services is not a sin.
in my eyes, its just the same mutual fund like every other mutual fund org. its just using sharia 's name.
Nayab
In India, you can invest in gold easily with Gold ETFs. It's just like a mutual fund, with only difference being that instead of shares, the fund purchase and sells only gold. The value of the fund reflects gold prices.
There is however an element or risk, as you do not have physical possession of the gold and in case of a major economic catastrophe, the fund can default or run away with your money. The same is is there for mutual funds and shares as well. So physical gold bars and cons are safer, although buying, selling and storing it are hassles.
Ekram
I heard (almost 1 month ago ) that a committee or organismic has been formed to monitor sharia compliant funds.
any info about that?
Noor Ul Huda
brother ekram
being a finance student i am assuring you that , no matter what any organization calming, they cant get rid of interest.
the reason is, whether banks or mutual funds etc, they invest money is other businesses and give loans to others. they cnt do business if they are Islamic in nature.
no way in this world you can find a single financial institution based on Islamic finance. infact islamic finance is a subject of history now.
there is no concept of "FUTURE CONTRACTS" as per fiqah. we can not do business based on future contracts or terms/conditions. best is to have the tangible asset in hand. that's safe, and that's the best way to avoid any risk.
Nayab
+1. My thoughts exactly.
The present day capitalistic system is itself based in riba. Those trying to sell so-called "Islamic mutual funds" or "sharia compliant funds" including companies that operate in such a system are hoodwinking the masses (at least in India).
At least if these "sharia" funds limit their investment to companies that does not give or take interest and sell products that totally comply with sharia, it would have been understandable. But what these people do as a matter of principle is invest in companies that have less than 33 % debt. Since when did riba <33% become halaal?
Here is the list of companies that these "Sharia" funds invest in
http://www.livemint.com/2007/03/09034547/List-of-Shariahcompliant-firm.html
Just for an example, refer to the balance sheet of ACC Ltd, the 4th item in the list:
http://money.rediff.com/companies/acc-ltd/11510001/balance-sheet
ACC has secure loans worth 518+ crores. This is only an example. Most of the companies in this list have loans. The only exceptions are MNCs such as ABB, 3M, BOC, Ingersoll Rand, GlaxoSmithkine Cons, etc.
Them there are companies such as Infosys that figure in this list. The loans apart, providing support to banking and insurance companies form th core of Infosys business. Simply put, if Infosys ceased to partner with riba based banks in Europe and USA, it would in all probability shut shop.
This is the status of our so called "Sharia" funds.
SYED
Assalam Alaikum Brother, Good question though,
By Allah interest is definite haram and it is also not a matter of differences of opinion,
In various verses in Quran Allah Swt forbids usury and Rasooallah SAW have also forbid it in Various ahadith.
By just establishing Islamic financial institution and Islamic Banking it will not relive us from this evil of interest.
Interest based economic system is prevailing all over the world and whole world is in Clear Kufr including Muslim world. Only resumption of islamic Way of life would ease all muslims from the evil of Riba. After the destruction of Khilafah in 1924, Muslim Ummah find different ways to sneak out of obligation which is required from the ummah, Islam as an ideology which has its own Social System, Ruling system, Judgement System and Economic System. Islamic Banking system being a very small part of Islamic Economic System can't be established when their is centralized Riba Based system of any country.
And in Islam we don't follow what we like and leave what we dislike because Allah Swt has forbidden it in the Holy quran that: "Do you believe in a part of a scripture while rejecting the rest, What is the Recompense for those who do so except disgrace in this world and in the hereafter they will be consigned in Hellfire"
so in islam we don't take a part leave the other, we take the whole package. So Only establishing Banking system will not release us from the obligation of Resumption of islamic way of life.
We have been also Ordained by Allah swt to Cut the hands of the thief and stone the fornicator. This verses were revealed to Prophet as the obligation of Salah & Zakat were revealed and it is addressed to the ummah as the verses of Salah & Zakat is been Address, By Allah We can't sneak out from this obligation.
Only complete package of Islam(Social, Economic, ruling, Judgement System) have to be implemented in the world, Only then peace would return to the world.
Jazak Allah.
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