Dealing with Islamic banks
Mu' meneen Brothers and Sisters,
As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked this question:
Dear Brother Burhan, Assamalaallaikum warrahmatullahi wabarakatuhu
Conventional banks today have started islamic financing (wings) and they claim that they are following shariah with emminent scholars approving their transactions. Can we deal with these banks (islamic wings) particularly for car loans.Jazaallah.
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In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.
It is indeed true that some conventional banks like Citicorp, HSBC, etc. have started Islamic financial wings whereby they transact money based on Shariah principles and approved by eminent Islamic scholars. There is absolutely no harm in dealing with these Islamic Institutions or wings started by conventional banks or Islamic Financial Companies for ones housing, car, business, or other financial needs.
If one leaves interest-based banking and strives to align his financial needs and arrangements with Shariah based financial institutions only for the sake of saving himself from what has been clearly declared haraam by Allah and His Messenger (saws), not only will he save himself from the haraam, but Allah will bless his transactions and give him a huge reward for his piety.
Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.
Your Brother in Islam,