Sans interest Islamic financial framework is halfway taken after and somewhat not followed in Muslim nations around the globe. The main nation, which has tailed this framework totally in consistently detail is Malaysia. So the application techniques in this post are for the most part those actualized in Malaysia taking after the without interest Islamic Economic framework.
The principle highlight of the Islamic monetary framework is that it is Interest-Free. As the Qur’an says in Sura al-Baqara Chapter 2 Verses 278 and 279, “O ye who accept! dread Allah and surrender what stays of your interest for usury if ye are to be sure devotees. On the off chance that ye do it not pay heed to war from Allah and his Apostle: yet in the event that ye turn back ye should have your capital totals; don’t bargain shamefully and ye might not be managed treacherously.”
Qur’an censure every single abhorrence deed, yet never has the Qur’an cautioned of a war against God Almighty and His Messenger aside from on account of taking Interest and Usury.
There are a few wrongs of the interest based economy, the motivation behind why Islam has precluded it.
For instance, if a man takes a credit from a bank and says the cost of a specific article is 10 dollars and he needs to a benefit of one dollar. So the offering cost would incorporate the 10 dollars cost value one dollar benefit and one dollar premium and the offering cost would be 12 dollars. The offering cost would go up due to intrigue and when the offering cost goes up the interest descends and when the interest descends the supply descends and as supply descends creation descends bringing about work issue and unemployment.
There is Social Injustice.
For instance, if a man takes a credit from the bank and regardless of in the event that he procures a benefit or goes in misfortune he needs to pay that settled measure of premium. Regardless of the fact that some regular cataclysm comes upon his family, for example, flooding or tremor, the individual still needs to pay the advance with the interest and a deferral would just build the measure of interest. It is social bad form.
There is no social thought.
Assume, if two specialists come to request an advance from a current bank and one representative needs to begin a social or healing center while the other agent needs to begin a liquor manufacturing plant or a betting cave. Be that as it may, characteristic the agent, who needs to begin a liquor industrial facility or a betting cave would have better returns and the advance given to him would be more secure and he would give a higher rate of enthusiasm when contrasted with the business, who needs to open a school or healing center. Advanced banks are just keen on showing signs of improvement and higher returns. That is the reason they fund betting sanctums as opposed to schools or healing centers. That is the reason in the 80s a huge number of betting lairs were financed by present day banks around the world. For name purpose just a couple of social ventures are financed by current banks and the lion’s share of their advances depend on better premium.
Present day banks urge individuals to store cash and keep the cash unmoving for little settled profit for it consistently. At last, power is moved in a couple hands, the investors.
Similarly there are a few advantages of Islamic keeping money.
As there is no interest required, there is benefit and misfortune sharing. So if a man needs to offer his merchandise, it would just have the cost and benefit in the offering cost and rather than 12 dollars, his offering cost would be just 11 dollars. On the off chance that the offering cost descends, the interest increments and if the interest expands the supply increments and as supply builds the generation increments bringing about more work for the general population and higher occupation. Thus urges individuals to work and gain their living.
There is Social Justice in Islamic managing an account.
On the off chance that a business takes an advance and goes in misfortune, the misfortune is shared by the bank and on the off chance that he procures a benefit, the benefit is shared by the bank. On the off chance that in the event that any regular catastrophes comes upon him, the Islamic bank gives him more opportunity to reimburse, not at all like the current bank, where the additional time you take to pay the more premium you would need to pay. Numerous a times if the Islamic bank finds the circumstance awful, they even let go off that advance.
There is Social Consideration in Islamic managing an account.
Islamic bank can not give a credit to any specialist, who is doing any movement, which is making hurt the general public. For instance, if a representative needs to begin a liquor manufacturing plant and methodologies an Islamic bank for an advance, the Islamic bank won’t loan him a solitary penny, not regardless of the fact that he guarantees to give 100% benefit to the Islamic bank. In Islamic managing an account there is social thought and they energize ventures advantageous for the general public, for example, building schools, healing facilities and nurseries. To put it plainly, the Islamic bank urges the general public to move forward.
In the Islamic bank, you are not urged to keep your cash unmoving. You are urged to contribute your cash and be an accomplice in the business and at last, power is not amassed in the hands of a couple of people. Since in the Islamic saving money the benefit and misfortune are shared by the business, the financier and also the contributor. The force is similarly shared among all the general population.
The considerable savant, Aristotle has wonderfully characterized Interest as “An acquiring taking into account the utilization of cash and not on work, and all such earnings(interests) are against nature.”
Lets rapidly break down the destinations of the Islamic monetary request before we dissect the hypothesis and functional use of the Islamic financial framework.
The Objectives of the Islamic Economic Order
Islam urges a man to appreciate the bounties of God Almighty, to work for his living and abstain from asking.
2-Universal Brotherhood and Justice
Qur’an says in Sura al-Hujurat Chapter 49 Verse 13, “O humanity! We made you from a solitary (pair) of a male and a female and made you into countries and tribes that ye may know each other (not that ye may disdain each other). Verily the most regarded of you in seeing Allah is (he who is) the most honorable of you.”
From this we come to know the criteria that the criteria of judgment in seeing God is not riches, not sex, not shading, not Caste, but rather it is “Taqwa” God awareness, devotion and honesty.
Qur’an says in Sura a Nisa Chapter 4 Verse 135, “O ye who accept! emerge solidly for equity as observers to Allah even as against yourselves or your folks or your family and whether it be (against) rich or poor: for Allah can best ensures all.”
As per this we need to remain for truth and equity be it against anyone even against our own selves and penance your own particular advantages.
3-Equitable Distribution of Wealth
Islam is against the logic that the riches ought to be packed in a couple hands. The contrast between the rich and poor people ought to be decreased. Else they would get to be foes unto each other. For this, Islam has contrived an arrangement of “Zakat” that each Muslim, who has overabundance riches surpassing the sum equivalent to or more than 85 grams of Gold. This sum is spent on poor people, vagrants, destitute etc. In the event that each person on the planet hones this arrangement of “Zakat”, not a solitary individual in the entire world would kick the bucket of appetite. Islam instructs to discover legal occupation for the unemployed and to pay him a decent compensation.
As per Islam if a man passes on his riches ought to be dispersed among his beneficiaries as indicated by the rules set down in Qur’an and Ahadith and it ought not go to only maybe a couple people in the general public as it is done today.
4-Individual Freedom inside the Context of Social Well-passage
As per Islam man is conceived free and no one not even the state can revoke his flexibility nor subject his life to strict regimentation. Each individual is free the length of he doesn’t hurt the general public on the grounds that in Islam the bigger welfare of the general public overshadows the individual opportunity.
Working and work and also the advantage in business are both essential standards of Islam, yet working and work overshadow the advantage in business. In the event that you are working together, a major misfortune can not be perpetrated to alleviate a little misfortune, nor can a major benefit can be relinquished for a little benefit. To put it plainly, Islam has faith in individual inside the connection of social welfare.
There are mostly four variables required underway;
In both the Modern and Islamic speculations, you pay rent on the area.
You pay compensation on the work in both the Modern and Islamic speculations.
In the Modern hypothesis, you pay Interest on capital, while in the Islamic hypothesis there is benefit and misfortune sharing.
In the fourth component of creation, Organization, there is benefit and misfortune partaking in both speculations.
So the significant distinction in the four variables of generation is the third element of Capital. The Modern Theory says that an altered interest ought to be charged on the capital, while the Islamic hypothesis says that there is benefit and misfortune sharing on capital. Since Islamic hypothesis does not separate between the third component Capital and the fourth variable Organization in light of the fact that the cash loaned by the bank does not have a place with the bank itself, it has a place with the contributor. The investors are the piece of Organization and the cash saved in the bank (the capital) ought to be incorporated into the Organization. In the Islamic hypothesis Capital and Organization are clove together and there is benefit and misfortune sharing on the capital.
When you need to work together, there are actually two sorts of units. One is the surplus unit, who have overabundance of riches, yet don’t know how to spend it. Second is the shortfall unit, the general population who don’t have cash, yet have smart thoughts for business. The best case of a surplus and shortfall unit in the Islamic history is Lady Khadijah (may Allah be satisfied with her) had abundance of riches, however needed roads to spend in and being a female she couldn’t set out abroad a lot to bargain in business exchanges. The defici