Q: Are the Home Purchase and Buy to let products offered by Al Rayan Shari’ah compliant? A: Al Qalam Shariah Panel have not audited Al Rayan bank’s products hence we are not able to comment on their shariah compliance. Each of the banks that offer Shari’ah compliant home purchase plans have a panel of external […]
Read more...Category: Mortgages and Loans
Can interest money be used for paying Council Tax and car insurance?
Q: Can interest money received be used for paying Council Tax and car insurance? Additionally should interest money be disposed with non Islamic charities? A: Interest money cannot be used to pay council tax or car insurance. It should instead be given to the poor or utilised in public welfare projects without any intention of […]
Read more...Is it permissible to have a fixed return in a profit sharing agreement?
Q: Is it permissible to have a fixed return in the following profit sharing agreement? A lender agrees to provide an interest free loan to a businessman. Separately, the businessman will in the near future be completing a trade and selling certain goods to his customer. The lender wants to raise a contract to stipulate that the businessman will pay back the […]
Read more...Penalty for missed payments
Q: I’m renting a commercial shop and the contract has a clause regarding missed payments and interest etc… Can I say to ‘seller/landlord’ I will pay 10% on the rental amount if the rent is missed by 7 days and 20% if it’s missed by 14days? Please advise. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب […]
Read more...Can we take out an individual voluntary arrangement (IVA) for paying off debts?
Q: I have a huge amount of debts and I am considering taking out an IVA plan even though I can make the payments to the companies, Is it permissible for me to take an IVA which means I will not pay back all the money I owe to the creditors which means up to 60% […]
Read more...What is the Islamic viewpoint on UK Student Loans?
Q: What is the Islamic viewpoint on UK Student Loans? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Please see link below: Student Loans
Read more...Is it permissible to take out a loan in which repayment with interest is not required so long as it is paid off prior to the expiry of the grace period?
Q: Is it permissible to take out a loan in which repayment with interest is not required so long as it is paid off prior to the expiry of the grace period? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: In principle, if one agrees to take a loan from another with a grace period in relation […]
Read more...Is paying back more to a loan I take from my pension fund considered interest?
Q: I intend to purchase a property for my business use for which I intend to borrow the money from my own pension funds. I have a self-administered pension scheme to which I and my partners contribute, the scheme allows us to operate and invest the money at our own discretion as so far as […]
Read more...I intend to purchase a property for my business use for which I intend to borrow the money from my own pension funds.
Q: I intend to purchase a property for my business use for which I intend to borrow the money from my own pension funds. I have a self administered pension scheme to which I and my partners contribute, the scheme allows us to operate and invest the money at our own discretion as so far […]
Read more...Can I take a student loan if it’s the only way I can afford to go to university?
Q: Can I take a student loan if it’s the only way I can afford to go to university? الجواب حامدًا و مصليًا و منه الصدق و الصواب A :Whilst the importance of getting a university education is acknowledged, it must be maintained that it cannot be done at the expense of the […]
Read more...Can you explain the concept of LIBOR?
Q: Can you explain the concept of LIBOR? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Please read from page 117 from the link below: http://islamicfinancenews.files.wordpress.com/2009/09/an20introduction20to20islamic20finance.pdf It has covered this issue in a very easy to understand way.
Read more...Can I apply for an interest-based mortgage on behalf of a family member who is unable to as they will be paying for all costs involved?
Q: Can I apply for an interest-based mortgage on behalf of a family member who is unable to as they will be paying for all costs involved? الجواب حامدا ومصليا و منه الصدق والصواب A: It is not permissible to do this because the lender with be contracting an interest based loan with you which […]
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