Islamic bank loan.
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:
Bank Loan-Shariah complaint(according to the Bank)
My bank Saudi British Bank (SABB) is offering shariah compliant loan and the details are as below, I need to know if this is halal, interest free as claimed by the Bank, the bank`s web site details & web page is in red below.
1) SABB is offering loans under Islamic scheme, they are also gave a copy of a fatwa signed by 3 Sheiks from Makkak. The loan details are as below
60,000 loan amount from SABB is payable in 36 months
7,650 is the total commission for 3 years
67,650 Total amount payable and no more charges are applied
1,879 Monthly installement
The bank is claiming that this method is legitimate and Shariah compliant..can we avail this loan?
MAL for Saudis and Expatriates
http://www.sabb.com/Individual%20Solutions/Basic%20Banking%20Solutions/Financing/MAL/MAL_en.shtml MAL is an Islamic personal finance from SABB Amanah, designed to provide you with liquidity to meet & fulfill your needs. MAL is based on Tawarruq of providing Islamic finance that is approved by our Shariah committee, therefore ensuring complete Shariah compliance.
This is how Tawarruq works. SABB owns commodities purchased from the market and sells it to you at a fixed profit rate you agree upon and flexible repayment period. As soon as you agree to buy the commodities from SABB, you also authorise SABB by issuing power of attorney to affect the spot sale at prevailing prices. This completes the transaction cycle instantly thereby allowing us to credit the sale amount to your account. The entire process is quick, easy and economical.
Key features and benefits:
Finance available form SAR 10,000 up tp SAR 1,500,000 Flexible repayment period Competitive rates Covers your outstanding financing amount, Allah forbid, in the event of death thereby protecting the family from such unforeseen debt contingency Contact us For further information, please visit one of our branches or contact SABB Direct Toll Free on: 800 124 5557
(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)
Islamic bank loan
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 none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.
Your Question: …..The bank is claiming that this method is legitimate and Shariah compliant.. can we avail this loan?
Respected brother, if the method is Shariah compliant and approved by the bank’s board of Shariah committee, and you are indeed in dire need to take out the loan…. it would be considered lawful for you to avail the loan.
Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.
Your brother and well wisher in Islam,