interest payments

19 August 2011, 21:39

Rine Everett

interest payments

OK, flipping through the channels last night and heard a talking head mention that a muslim can not pay or collect interest on a loan. One, is this correct? Two, if so, how does a bank profit?

Thnaks

20 August 2011, 04:41

Oddbod

This pretty comprehensively covers it: Islamic Banking

21 August 2011, 04:45

Grizzly Adams

Allah, like Jehovah, tends to be flexible, when it comes to money.

I think loaning money to Infidels has different rules, especially when they buy your oil.

Grizz

Indeed, no human being has yet lived under conditions which, considering the prevailing climates of the past, can be regarded as normal. John E Pfeiffer, The Emergence of Man

Those who can't skin, can hold a leg. Abraham Lincoln

Only one war at a time. Abe Again.

24 August 2011, 17:44

Saeed

quote:
Originally posted by Rine Everett:
OK, flipping through the channels last night and heard a talking head mention that a muslim can not pay or collect interest on a loan. One, is this correct? Two, if so, how does a bank profit?

Thnaks

Banks are crooks, no matter where they are.

Here is an example.

If you want to buy a car with finance from a normal bank, you sign a loan agreement with them, and agree on a certain amount of interest. The car is registered in the bank's name, and is yours when the payments are all done.

In an Islamic bank - remember, they are not allowed to charge interest! - the bank buys the car, ups the price, and sells it to you. The car is registered in the banks name. And you get it once the payments are made.

Everything is exactly the same, just under different names.

24 August 2011, 22:16

Rine Everett

Thanks Saeed. It ends up being the same profit/expense either way, just a diffrent way to take my money. I will keep driving my 7 year old truck and keep pocketing the monthly payments.

29 August 2011, 08:21

TomP

quote:
Originally posted by Saeed:
quote:
Originally posted by Rine Everett:
OK, flipping through the channels last night and heard a talking head mention that a muslim can not pay or collect interest on a loan. One, is this correct? Two, if so, how does a bank profit?

Thnaks

Banks are crooks, no matter where they are.

Here is an example.

If you want to buy a car with finance from a normal bank, you sign a loan agreement with them, and agree on a certain amount of interest. The car is registered in the bank's name, and is yours when the payments are all done.

In an Islamic bank - remember, they are not allowed to charge interest! - the bank buys the car, ups the price, and sells it to you. The car is registered in the banks name. And you get it once the payments are made.

Everything is exactly the same, just under different names.

Hi Saeed

Who pays the insurance, registration fees, and property taxes, or are they also lumped into the increased price of the vehicle?

29 August 2011, 14:49

Philip A.

So, if you're not allowed to eat pork, you call it bacon and you're OK...

30 August 2011, 11:02

Idaho Sharpshooter

Just like the new ammunition some of the marines are being issued in Sandbox II. It is NOT hollow point, that is against the Geneva Convention. It is "Open Tip" and that is apparently an entirely different type and OK by our DoD.

If you are not in the military, you can buy it by the metal can from Cheaper Than Dirt in their latest catalog. I am not making this up.

09 September 2011, 17:48

B Mullins

Once upon a time the Catholic Church would not let banks charge interest. The Templars got around this by charging "rent" for the money.

There is no reason a bank should EVER go under. After all, what is their "raw material"? Money - which they charge US to keep. And what is their "product"? Money - which they charge us to use! Nobody who charges BOTH their suppliers AND their customers should ever go belly up.

11 September 2011, 00:15

505 gibbs

quote:
Banks are crooks, no matter where they are.

Here is an example.

If you want to buy a car with finance from a normal bank, you sign a loan agreement with them, and agree on a certain amount of interest. The car is registered in the bank's name, and is yours when the payments are all done.

In an Islamic bank - remember, they are not allowed to charge interest! - the bank buys the car, ups the price, and sells it to you. The car is registered in the banks name. And you get it once the payments are made.

Everything is exactly the same, just under different names.

How is charging for goods or services being a "crook"?

11 September 2011, 11:59

Norman Conquest

The term is 'Usury'. It is also illegal in this country as well.One must agree in writing to an allowance of interest charged,otherwise no interest can be legally charged.I have several customers who have been penalized + are proof to this fact.

12 September 2011, 00:10

505 gibbs

quote:
The term is 'Usury'. It is also illegal in this country as well.One must agree in writing to an allowance of interest charged,otherwise no interest can be legally charged.I have several customers who have been penalized + are proof to this fact.

Our judicial system charges people interest every day who have not agreed in witing, through judgements.