Assim Al-Hakeem – Taking Loans From So Called Islamic Banks

			Rio will be taken from my salary for like two to three years, because I asked them decided to Sharia
compliance and Islamic. Okay, no more questions.
		

			No, that's my question. I will answer inshallah.
		

			Brother Yousef is asking about acquiring a loan from NCB national commercial bank or a bank as
known. And he said that it is Sharia compliant. And they told him that this is Islamic. And he's
asking, Is this truly Islamic? Well, each one
		

			claims to be Islamic. So you cannot take what they say, for its face value, until you scrutinize the
process that they are doing. First of all, Islamic banks do not lend money. Because islamically when
you borrow money, you have to give the money as it is. Any increase would mean that this is
interest. Or in Islamic terminology, this is Riba usury. And it's totally prohibited. It's one of
the seven major sins in Islam.
		

			So how would the Islamic banks
		

			try to divert and avoid falling in such a major sin? Haha, they do not
		

			lend you money. So you don't get 50,000 reals, and you pay 2000 per month.
		

			They don't do this to you. Because this is cleared Riba with interest, what they do is an actual
halaal transaction. And that is they sell you something. So for example, if this pen costs in the
market 10 results, it's mine. I own it. If I sell it to Tom for 10, and fidic, for 20. And for Harry
for nothing, no one can complain out of the three, because it's my pen, I can sell it in any price I
want. This is my property.
		

			Therefore, what they actually do the transaction, the halaal transaction, it should be as follows.
You come and buy this pen from me and this transaction called tower rock. So I'll sell it to you
though the market price is 10 riyals because you are unable to pay it cash I'm sending are not
lending you. So I'll sell it to you for 15 reals. You agree? We signed a contract, we put the terms,
we say that you have to pay 2000 or whatever a month, the price is fixed fixed at 15. There's no way
even if you go to prison or hospitalized, I cannot as a bank say oh, you skipped to three months, we
have to increase it from 15 into 16. No, the price is totally fixed at 15 this transaction is valid.
		

			So what is the catch here? Hmm, the catch is that not all so called Islamic banks deal in an Islamic
way. They have a Sharia board. Some of them have a Sharia board in a five star hotel and they
display to them listen, we want to sell this we want to buy this this is the transaction we want to
do and the scholars look at it as in black and white sea This is okay. No this is not okay. You have
to change this helaas Okay, signed, stamped and delivered.
		

			Now, the bank that is not truly Islamic would take this fatwa and hang it on the doors. But the
transactions are not in accordance to what is in the factual in the sense
		

			if you go to a so called Islamic bank, that is not dealing islamically correct. You say I'd like
$100,000 worth of cash is two so this is an Islamic, so what to do is it we will sell you something
okay and then you take that something and sell it elsewhere or
		

			to make life easier for you we will sell it for you. So, I came to get cash.
		

			So I said this is okay. So what do I have to do sir Okay, listen, this is a contract whereby we will
sell you 10 1500 tonnes of iron ore of copper ore, X number of air conditioners or wheat or rice or
whatever. So sign here that you will buy it for 120
		

			1000 from us you have to pay us 120. So, I sign then they bring me another contract and say okay
this contract, you authorize us to sell that X amount of money to any buyer who comes in
		

			providing that it is within the range of 100,000. So nice sign and in five minutes time the 100,000
is in my bank account. Wow, that was quick.
		

			This is an invalid transaction. Why? Because I did not see the product myself.
		

			I did not acquire the product and take it into my possession. Thirdly, they sold it before me
		

			taking it into my possession. And without me checking if there exists or not. And there are reports
that some of the Lowe's dubious Islamic,
		

			so called Islamic transaction banks or financial institutions do not have the product, this is why
		

			you get the money in like five minutes or 10 minutes. This is impossible. If you have like 1500
tonnes of rice in a location as they claim in your warehouse. First of all, you have to go and check
it.
		

			You went to their warehouse and you found it. Second of all, do not authorize them to sell it
because this is not permissible. Take it and put it in your trucks and take it to anywhere else even
if they advise you No problem, but you are the one who's actually obliged to take it and possess it
then sell it with any price you wish.
		

			This is not happening. So the actual 1500 tonnes of rice in that particular plot is being sold and
bought from like 30 or 50 branches in the country. And this year, we have 1500 tons of rice. And
that branch in the man says the same in that in Mecca says the same that same says the same on the
same pile of rice. So they sell it and buy it only on paper.
		

			And this is totally prohibited. This is river
		

			no doubt in that. Therefore my friend uses I would
		

			suggest that you look into their process. Do they have the commodity that they want to sell to you
before any commitment from your side? If yes, did you see it? If yes, once you sign it will you be
able to take it yourself personally and dispose of it or sell it elsewhere with a lower price? If
yes, then the transaction is Hello