Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
USURY has been prohibited by our religion. Yet, the Arabs will charge us $64 million dollar for just over a $100 million. We are discussing this Bank named Islamic Development Bank.
I think BD is taking a hard loan instead of a soft loan which could be the reason why they have to pay the interest. Does IsDB have different policies for hard and soft loan?
ohh..its very much like mutual fund..but then,this model works if someone wishes to deposit money,or invest money,for which we may or may not have better options of mutual fund available.What if someone wishes to take a loan??Any provisions for that???
Well I should not have said mutual funds as you messed up there. If you want to take loan from Islamic Bank then its just a normal procedure as like as any other bank. You submit project proposal, feasibility study and collateral. Bank will look into it and participate as a share holder for a certain period of time. They will take the profit or any loss from that venture. If the business fails, the loan taker does not have to pay back the money.
You mentioned collateral, whats that for ? Traditionally bank holds collateral to mitigate risk.
Years ago I had a friend who worked for AL Baraka bank in Dhaka. I don't know if that bank is around anymore. What he told me, there is not much diference in approach to profit and risk analysis with traditional banking
What he told me, there is not much diference in approach to profit and risk analysis with traditional banking