09-26-2003, 06:26 AM
Thanx pervez, nice research work, i m really impressed,
One thing is now clear to me, i had understanding that Jews are allowed to charge interest in their religion, thanx for updating me.
the thing on which i m confused, if u look at the financial institutions which claim that they are doing business according to Islamic mode of financing, but actually they are doing the same thing which a non islamic bank does. So what's the difference, I have a friend in UK, who works in Midland Bank, actually he raised the same question, he had already gone through the mode of financing by these islamic banks, he said that he is surprised that he could not find any difference b/w this financing and Normal financing,
the another interesting question raised by him was relating to a loan, i ll better be able to explain it by an example.(i have already posted the same on any other forum some months ago)
Suppose you take a loan of Rs.5,000/- today which is equivalent to 10gm of gold, the terms of repayments are that you will repay the loan after 1 year in terms of gold.
and after 1 year, the prices of gold shoot up to Rs.7000 per 10gm, now you have to repay Rs.7,000/-, what does this difference of Rs.2,000/- represents,
i replied him as this is conditional loan, there is a chance that prices of gold may go down, so u may earn gain on that.
he quoted the theory of economics"Prices are flexible to upwards and rigid to downwards".
S M R
One thing is now clear to me, i had understanding that Jews are allowed to charge interest in their religion, thanx for updating me.
the thing on which i m confused, if u look at the financial institutions which claim that they are doing business according to Islamic mode of financing, but actually they are doing the same thing which a non islamic bank does. So what's the difference, I have a friend in UK, who works in Midland Bank, actually he raised the same question, he had already gone through the mode of financing by these islamic banks, he said that he is surprised that he could not find any difference b/w this financing and Normal financing,
the another interesting question raised by him was relating to a loan, i ll better be able to explain it by an example.(i have already posted the same on any other forum some months ago)
Suppose you take a loan of Rs.5,000/- today which is equivalent to 10gm of gold, the terms of repayments are that you will repay the loan after 1 year in terms of gold.
and after 1 year, the prices of gold shoot up to Rs.7000 per 10gm, now you have to repay Rs.7,000/-, what does this difference of Rs.2,000/- represents,
i replied him as this is conditional loan, there is a chance that prices of gold may go down, so u may earn gain on that.
he quoted the theory of economics"Prices are flexible to upwards and rigid to downwards".
S M R
