clarification please

[__follower]

i would like to ask about the issue of interest . as i heard , Islamic banks doesn't charge or take interest .
so my question is how do they still manage to survive ?
can anyone please explain .
thank you

[tigerkhan]

i dont know the exact answer. but there was one course i studied in engineering, project managment. there was one term "time value of money". it means e.g u give me
100$ for sometime. i invest this money and got 10$ profit. so even if i return ur 100$ and dont charge anything from U, i will be in profit.

[manaal]

:sl:

Islamic banks invest your money in non-interest bearing, halal projects. For examples, they's invest in shares of a comapny that deals in an indsutry that is not haraam. The money of all the bank's account hlders are invested in a portfolio of investments, they take part of the profits for their efforts and the rest is for you. The return is nor guaranteed, and not fixed. If they do not make any profits you get nothing, and if there is a loss, you lose nothing.

[aamirsaab]

Some islamic banks do charge interest but call it something else like manager's fee or some such (yeah it's not cool but unfortunately it does happen)

Also, islamic banking products typically are more expensive than conventional banks.

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[أبو سليمان عمر]

Asalamu alaykum from what i have seen it is the same thing but they call it Murabaha (PROFTING) so what they do is say you want a house so you find it then they buy it make up the price for a proft and add a small amount on top of that monthly calling it management fees or they say that the face value of money will increase hence we charge you so and so amount to make up the differnce seems so good huh but its not let me show you why we know buying and saling is halal and making profit is halal so whats the problem well before they even by the house you sign the contract so 1 they are making you sign a contract to buy a house that isnt even theirs yet 2 they just change the name to Murabaha WHEN IT IS INTREST becasue check this out if you are late on a payment guess what you pay a fee and this is called Adab i dont know the English way to translate it so basicly from what i have see and had family go through it is Intrest in a dress it is riba with a mask and we need to avoid this is what i have been through and seen for myself and Allah knows best and this wasnt one bank it was 3 banks differnt "ISLAMIC BANKS"

[__follower]

thank you for replying..
but the concept behind is still the same isnt it ?

[أبو سليمان عمر]

Yes sis it is best to avoid them for it is the same thing with a differnt name Allah knows best

[manaal]

Asalamu alaykum from what i have seen it is the same thing but they call it Murabaha (PROFTING) so what they do is say you want a house so you find it then they buy it make up the price for a proft and add a small amount on top of that monthly calling it management fees or they say that the face value of money will increase hence we charge you so and so amount to make up the differnce seems so good huh but its not let me show you why we know buying and saling is halal and making profit is halal so whats the problem well before they even by the house you sign the contract so 1 they are making you sign a contract to buy a house that isnt even theirs yet 2 they just change the name to Murabaha WHEN IT IS INTREST becasue check this out if you are late on a payment guess what you pay a fee and this is called Adab i dont know the English way to translate it so basicly from what i have see and had family go through it is Intrest in a dress it is riba with a mask and we need to avoid this is what i have been through and seen for myself and Allah knows best and this wasnt one bank it was 3 banks differnt "ISLAMIC BANKS"

This would happen if you are trying to invest your money directly through the bank. I have a Savings account for my son in an Islamic bank, run by Muslims and it's a profit sharig scheme like I mentioned in my post mentioned above. THey say that they onvest the money only halaal schemes. I have np direct involvement with what happens to the money once it goes into the account. I get a statement annually showing how the account has grown (or not). The bank is run by Muslims and the system looks pretty straightforward. If they say it's halaal, as a fellow Muslim I trust them and don't eed to question it. If they invest the funds in a haraam manner that is between them and Allah.