Islamic Finance - Shariah-compliant car loans

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Shariah-compliant car loans

Printed From: IslamiCity.org
Category: Religion - Islam
Forum Name: Islamic Finance
Forum Description: Islamic Finance
URL: https://www.islamicity.org/forum/forum_posts.asp?TID=15379
Printed Date: 26 April 2024 at 9:10pm
Software Version: Web Wiz Forums 12.03 - http://www.webwizforums.com

Topic: Shariah-compliant car loans

Posted By: kashmir1
Subject: Shariah-compliant car loans
Date Posted: 05 September 2009 at 5:50am

Salam all,

I live in the UK and wanted to purchase a car.

I was wondering if you knew if any banks provided Shariah compliant car loans in the UK.

salam,

Replies:

Posted By: kristi.gill
Date Posted: 08 October 2010 at 3:30am

I understand that, under Sharia law, you can not charge interest on deposits or loans. So what I think is, you get a car loan, and you only need to pay the price ex-showroom formless share of 10% or 12% rates.This financing is a growing market worldwide, but is currently provided only a fraction of the resources needed by the industry.