3 facts about sharia bank loans that you need to know

If you’re looking for a sharia-compliant loan, you may have heard that it’s difficult to get approved or that the interest rates are very high. Neither of these things are true! Whether you’re buying a home, starting a business, or paying for your kids’ education, there are many good reasons to take out one of these loans. Here are 3 facts about Shariah Adviser that you need to know.

1) The definition of Sharia banking

Sharia banking is a system of banking or financial services based on the principles of Islamic law (Sharia). Sharia-compliant banking products are designed to avoid interest, which is prohibited under Sharia law. Instead of charging interest, Sharia banks make money by sharing profits and losses with their customers. It also means they don't provide any financial service for what has been deemed unethical investments. 

While there are many benefits for those who practice Islam, this type of banking may not be appropriate for everyone. For example, it doesn't allow for fixed rates. It's also worth noting that these practices can be more expensive in some cases because there's no ability to charge interest and profit margins are smaller than typical investments.

2) Why banks are turning to Sharia?

Banks are increasingly turning to Sharia-compliant products and services to meet the needs of their Muslim customers. Here are things you need to know about Sharia-compliant banking 

They can't invest in businesses like alcohol, gambling, pornography, tobacco or pork production 

A sizeable minority of Muslims use them because they are unable to invest in traditional banks because they have difficulty meeting the necessary conditions for a conventional loan. 

They generally have lower interest rates on savings accounts than traditional banks do. 

Sharia-compliant investments are called Takaful, which is based on social solidarity between participants. 

Islamic insurance products also exist and may be offered by your bank as an alternative to traditional life insurance policies.

3) What is Sharia financing?

Sharia financing is a type of Islamic banking that follows the principles of Sharia, or Islamic law. This means that Sharia-compliant banks cannot charge interest on loans, as this is considered usury and is forbidden under Sharia. Instead, these banks typically use a system of murabahah, or cost-plus financing, in which the bank and the borrower agree on a purchase price for an item and the borrower then pays the bank back over time with interest. While more complicated than other types of financing, there are many benefits to this system, including low risk and no interest payments! 

Conclusion 

Sharia-compliant banking is a rapidly growing industry, with assets estimated at over $2 trillion. And while there are many misconceptions about sharia-compliant finance, the reality is that it can be a great option for those looking for an alternative to traditional banking. What's more, as we'll explore in this post, some of these misconceptions might have been perpetuated by media reporting on negative incidents involving Islamic banks. What should I do if I'm considering opening a sharia-compliant account? Talk to your local banker or broker and get all of your questions answered first before deciding what sharia bank loans will be best for you and your family.

Source: 3 facts about sharia bank loans that you need to know

5 Qualities Your Shariah Financial Planner Should Possess

Since the introduction of Islamic finance in various regions, there has been a rise in the number of people who are seeking Shariah financial planners. This is a good thing since you can now have access to professional advice when it comes to your investments and savings plans. However, not all Shariah financial planners are equal. There are some qualities that set them apart from others and make them stand out as experts and leaders in their field. Here are five qualities that you should look for when hiring a Shariah financial planner:

Should have a comprehensive understanding of Shariah

Shariah is a set of Islamic legal guidelines that define what is permissible and what is forbidden in Islam. In the context of finance, Shariah-compliant investments follow their religious laws and do not involve any interest or gambling. It's important to note that Shariah does not restrict Muslims from making non-Shariah compliant investments, but it does advise them to choose wisely when selecting investment options. Your financial planner should be able to explain how they will implement Shariah principles into your portfolio by providing you with an overview of the process for selecting suitable companies that adhere to Islamic principles.

Should be aware of the current market developments and their implications

Your Shariah Adviser should be aware of the current market developments and their implications. It is important for you to know how to use these developments in your advantage, and how to assess your situation. Knowing what instruments will help you achieve your goals is important as well.

Needs to know how to use these developments in your advantage

It is important for your financial planner to know how to use the tools available to you and make the most of them. They should be able to review your investments and find out what your current savings are worth, as well as plan out how much money you need in order for them to reach their goals. A good shariah adviser will also be able to use their knowledge in order for you get the best deals on things such as mortgages, loans and credit cards.

Should be able to assess your situation and provide you with the best plan

• Should be able to assess your situation and provide you with the best plan
• Should be able to provide you with a roadmap
• Should be able to provide you with a plan
• Should be able to provide you with a strategy
• Should be able to provide you with an action plan

Should be able to choose the right instruments for you

• Should be able to choose the right instruments for you:
• Can provide you with the best plan:
• Should be able to assess your situation and provide you with the best plan:
• Must be able to use these developments in your advantage.

Conclusion

In conclusion, a Shariah financial planner should be able to understand the market and use it for your advantage. The market is volatile but with the right tools and knowledge, you can manage risk and have a higher chance of success.

Source: 5 Qualities Your Shariah Financial Planner Should Possess