Banking in Islam

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bartdanr

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Peace All,

I have a question regarding banking (taking deposits and making loans, both at interest). If I understand correctly, it is forbidden to charge interest in Islam.

Does this mean keeping deposits at a bank and earning interest, or getting a loan, or making a loan at interest is forbidden altogether? Is there an alternative that is recognized as permissible? For example, most people need to take a mortgage out in order to buy a home. How is this handled in an Islamic manner?

Peace Again,
Bartdanr
 
Any form of interest is not allowed brother.
If you have an islamic banking system you can get a loan thro them.
The normally buy you the property and sell it to ytou at a profit.
You co own it with the islamic bank till you clear the loan.
 
They do this in the states? It's good, otherwise, I would not see how a muslim would get a loan for a home, with all the interest that is charged. What about motor vehicles and the like?
 

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