Islamic & Non - Islamic Bank are the same?

For anyone who really wants to understand what is islamic banking and how it works, i would like to recommend this book:

ISBN:

969-428-006-0

http://www.meezanbank.com/GuideIb.aspx

and here you can read it online:

http://islamicbookslibrary.wordpress.com/2012/02/07/meezan-banks-guide-to-islamic-banking-by-shaykh-mufti-imran-ashraf-usmani/

I would like to add my two cents that it is not necessary that 'all' banks with islamic in their title, or claiming to be islamic are perfect and following the islamic rules perfectly. That is why there is need of audit, even audit finds some mistakes which are rectified.

But islamic financing and interest based financing are clearly two different things and worlds apart. I have read the book quoted above and also attended a Islamic Finance course.

Brgds,

Islamic banks do not give cash money as loans, rather than they enter in a partnership with u as a customer, for example if u want to buy a car they will buy it instead and sell it to u in installments "they can charge u with higher price than the cash price since they r giving u the previlege of installments", which is called Murabaha..not interest. so if anytime u got money and u wanted to close the deal then u have to pay the total amount u agreed to pay in the beginning (total installments) while in the non islamic bank they will give u money and u have to return it back with interest, and if u decided to pay it back before the due date, they will not charge for the later period. I dont know how some people call it the same, it's like saying that adultry and marriage are the same since they consist of the same physical acts.!!!

mamamia2411 !!! you did not get the point. It’s not about Islamic vs non-Islamic or Islam exists. If you believe in Islam then please read what ALLAH wrote in the Quran about Money lending and borrowing on interests? Read the Hadith by Muhammad (PBUH). Then you will never think about banks again whatever necessity you may have for money. Check with the scholars if you are unsure about the verses and hadiths.

ahli bank offered a sum of 400'000Qrs loan for my salary!! But i wish only 100'000. (More higher amount is tempting, but I might have to pay even double the cost entire my life!!)

Decided to opt Alahli as my choice. Any comments?

Islamic/ non-islamic, islam exists in earth or not, its different peoples view point. But, I believe in Islam and the only religion staying untouched and unaltered in the universe is ISLAM. Its the ultimate truth. The path to success. Allahu Akbar.

So guys, i'm closing this thread here..! If any more comments on this only in regards the al ahli bank is welcome.

Thanks again.

I have taken a personal loan 58000 QR and have to pay back 75000 Qr to Barwa Bank - See I Am Paying 17000 Qr as interest.

My friend took a personal loan of 100000 QR from Doha bank

and he is paying back 170000 Qr Only. he is paying 17 thousand riyal as interest.

see the difference between Islamic bank & normal banks.

I prefer to take loan from QNB only.

There is no real difference. They are both geared to making money and mitigting risks.

No such thing as a real Islamic bank

Isamic system Demolished 2 century back.There is not even 1" part of earth is puerly Islamic.It so called Islamic in todays time to Cheat your Mind and heart ifyour muslim. Including banks or any other social customs

in this face of earth there is nothing ISLAMIC its already demolished 2 century back.What ever is present today is So called ISLAMIC to make your heart happy that your following ISLAM.Including banks and Other social customs

both will charge you ofcourse! but with Islamic Bank you know the exact amount you aim to pay which never fluctuates. however non-islamic bank might offer you less interest first year however they'l rip you off with higher interest rates and often compound interest which will keep your total amount increasing. You'l be ultimately chasing it all your life!

Yes, they get their money one or the other but this way the faithful think they are doing the right thing but still pay for the privilege. Might as well get an evangelical preacher from the US to visit and he will help you reach God as long as you send him money.... Not for him of course just for th glory of God....

From what I understand it is not allowed in Islam to lend someone money for profit i.e. charge interest...

So basically Islamic banks don't charge interest, they charge "fee's instead". So basically if you borrow 10,00Qr from them you will probably end up paying them around 13.000QR or so. So they DO make a profit from lending money just as you would from charging interest!

Makes sense really.. Banks are business's do you really think they are going to give you money for free!

So to me I cant really see the difference wether you call it interest or fee's at the end of the day it's same same but different..

So, what's the difference?

The ultimate difference is that dealing with normal bank is Haram and Ribaa which is one of the biggest sins.

Islamic banks deals according to Shareaa and the process is Halal in shaa Allah.

This is a major difference.

I would have to agree with LincolnPirate and mozaismyhero.

Islamic banks are back door RIBA. They could not get the faithful from the front door of the commercial banks so they created something called Islamic banks.

Looking from the start, In essence the entire monetary system is Haram. So when you realize that all that is built is on Haram foundation then Islamic banks fall under the same category. I don’t want to go into the lecture to proof this but some thoughts and investigation for all the righteous people.

Money is money, alcohol is ch3ch20h where as water is h20. Big difference.

Besides, if a person is drinking one glass of alcohol and one glass of water he is getting same quantity of liquid. So no difference aaeen?

:). The cost of the credit in islamic banking system is usually higher. Two points to consider here before even we talk about cost of the credit

- no islamic bank will offer you personal loan. They only offer loan on commodity.

- be it high or low, it is not the cost of credit that makes a financial transaction non-islamic.

The proof would be if you can bring an example of the cost of a credit from an Islamic bank compared to the cost of a credit from a non-islamic bank. If there is a difference for the customer, then there is a difference, otherwise, no.

No, they are not same. One is blessed and the other is cursed. A lot of people having no knowledge usually bring this 'same same' logic without going into financial details and point out the non-islamic element, in islamic banking, to prove it wrong.

On the outside vodka and sprite may look same same! At the core of it, merriage and fornication are same! Why not apply this same same logic here as well?

Din't wanna offend anyone but if you want to say that islamic banking is same as interest based commercial banking then bring ur proof...

Yasir.

i wished to follow the shariath laws and what islam says. But, islamic banks only allows govt or semi govt employee can get a loan with another govt/semi govt employee as a guarantor.

But the non-islamic banks have no restrictions whether your company is approved or not, they only need salary letter, bank transfer.

Both are saying flat EMIs. CBQ says 5.99% interest and 2.12% (or close to it) as there management fees/processing fees. Doha bank is bit better than all of these. there EMI is far low as what i received.

Anyhow, if there is an option to opt a bank apart from islamic banks, which will you choose? and why?

vegetarians/vegans too can talk about anything,

Painther, you are a vegetarian, talking about killing a GOAT?

its like killing a goat, in one particular way or other, whatever, end result- you get meat, and goat is killed.

in any banking, if you take money from them, you have to pay 'something' to them; and if you keep your money with them you get something from them,

Check the detail EMI calculation, which may show some differences, I mean the EMI works on reducing balance method or flat EMI for 4 years.

In reducing method, the EMI reduces with every payment you make, otherwise constant EMI each month.

Non Islamic banks rip off people from all backgrounds, Islamic banks only like to rip of the faithful of the one true God. Same, same. Take your money and then lend it to someone else for a fat profit.

@LP... its the ultimate

@Vic... different names, different policies but on same track

@MM... finding truth.

The difference of 'non'.

Commercial banks charge you INTEREST,

while Islamic banks charge you Operational funding Cost / Expenses. Different names and concepts.

Banks are banks, and they want only one thing: YOUR MONEY!