Islamic Finance (Banking) and Loans
A growing number of individuals and businesses are seeking alternative financing options aligned with their ethical and religious beliefs. This has led to a surge in interest in Islamic banking, which offer a unique approach to financing that adheres to Sharia principles. Unlike conventional bank loans, which charge interest (riba), Islamic banks employ profit-sharing arrangements or asset-based financing models. This blog post will explore what is Islamic finance and loans, their benefits and how they compare to conventional bank, empowering you to make informed decisions about your financial future. What is Islamic Finance Islamic Finance is a distinct and rapidly growing segment of the global financial system. It operates under the principles of Sharia law, which prohibits interest (riba) and emphasizes ethical and socially responsible practices. Instead of solely pursuing profit, Islamic finance seeks to achieve a balance between financial gain and social responsibility, foste...