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Lahore Real Estate Forum: Property News & Community Talk : ,

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   Rizwan
Monday, September 24, 2012 02:30 AM 
Reply: >
AOA,

Brothers, What is your expert opinion about home financing by Islamic banking? Is it really free from interest and comes under islamic laws?
This is a big concern for me these days as i really dont want to put myself in interest based deal.
May Allah keep all of us safe from Interest.
Habib replied on Monday, September 24, 2012 06:01 AM 

In Islamic Banking it is called Bai' al 'inah (sale and buy-back agreement) Summary is the Bank Buys the Property for You, And then resell to you in installmebnts, Like If you want to Buy a House of One Cror and want to pay Back in 10 years, Then they will calculate Inflation, currency devaluation and Bank Charges etc. They May resell You in 2 Cror. You will sign the agreement of terms and conditions and then you will start Paying,
If You talk about how much you repay that may be a bit more than interest based system but Good aspect is that it will not be Interest rather an agreement between You an Bank, It Looks justified way as You are not paying Lum sum and getting possession right away and in 10 years Your property may be 3 times expensive.
Though It looks exactly Like Interest Based system but we all know to Salughter in name of Allh sying "Allah O Akbar" is Halal and exactly same procedure but not sying Allah Name is Haram very clearly stated in Quran
Taimoor replied on Monday, September 24, 2012 06:06 AM 

WSalam,

As far as I know, Meezan bank is fine. You can further send an email to Darul uloom karachi and verify it.

Thanks,
jk replied on Monday, September 24, 2012 06:12 AM 

very sensitive issue. I doubt if there is a bank in the world runs on purely Islamic version and if some one is saying is lying. If some one is not taking interest then bank is keep it. In a state where you are getting imposed such tax which are not Islamic like property,wealth,road,TV, Sales,gain,holding ect ect, On top some one is paying Zekat too. Calculate it with the pure Islamic way out if you own some give it away to poorer and in case loosing keep the return from bank.It is not your fault but the ruler's. But while voting you must vote for the one who promises to follow Muslim rules. That is what I feel and rest Allah Knows better.

The post important is keep your conscious live
Arshad Ch replied on Monday, September 24, 2012 09:42 AM 

By the grace of Almighty I opened a Riba free account a few days ago.
Tahir replied on Monday, September 24, 2012 10:41 AM 

This is all fraud. Islamic Banks pay less interest on deposits compared to other banks and they charge higher interest on loans compared to other banks on the name of Islam. And make extra ordinary profits.

Riba is haram becasue you take advantage from other persons situation and here all islamic banks take maximum profit/advantage.
MAS replied on Monday, September 24, 2012 10:46 AM 

@ jk sorry but you are not making any sense at all. Rulers have the right to impose taxes to cover government expenses which has nothing to do with Zakat. Where has Islam prohibited government taxes? You pay Zakat to the poor but you pay taxes to YOURSELF because you use government services. Don't mix the two.

Mr Habib has explained the issue very well.
MAS replied on Monday, September 24, 2012 11:58 AM 

@ Tahir please don't call profits paid (or charges levied) by Islamic banks "interest" unless you are determined not to understand Islamic Banking.

As far as I understand Islamic banks pay slightly less profit compared to interest paid by other banks because they impose artificial limits upon themselves in order to comply with Sharia. For example they don't do business with or invest in stocks of companies that are deeply involved in interest based dealings. Basically they occupy a very small market which is fighting against a very large interest based market which is why their cost is higher. It is OUR FAULT that even after 10 years they have a small market share. They may need improvement but they are NOT FRAUD.
jk replied on Monday, September 24, 2012 01:48 PM 

Brother MAS I appreciate your comments and at the same request to read 1st and last sentence of my above statement. problem is that every one of us is MUFTI and Scholar. I admit this is not my field and you have much more knowledge then me . Please help by answering the basic question by Mr. Rizwan.

Is it ok to buy a house on Mortgage ? if yes from which bank. Thank you.
MAS replied on Monday, September 24, 2012 02:51 PM 

My dear jk are you saying that it was okay for you to give your opinion on the matter but not okay for me to offer comments on your comments? What I wrote was rather basic and simple and was not put forward as fatwa, nor did I doubt your sincerity. Nevertheless forgive me if I sounded rude. Your last sentence was: "This is what I feel, and rest Allah knows better", please consider this added at the end of my reply also.

As for the original question (which is not about mortgage), "I feel" it has been adequately responded to by Habib I am not competent to answer it any better.
Rizwan replied on Monday, September 24, 2012 07:24 PM 

Thanks Brothers, but i can see too much confusion and still not clear.I was expecting few comments will come in favor and few will come against it and i could make a rough guess but brothers started arguing each other lead me towards confusion.
I should do istakhra by myself
Jameel replied on Monday, September 24, 2012 08:21 PM 

To avoid Confusion Go for Habib's response only and decide yourself that how you will pay back
Headliner replied on Tuesday, September 25, 2012 05:31 PM 

Mr Habib

very well said u have drawn a fine line Between Haram & Halal
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