From the previous post,it's crystal clear that interest based loans are no go area for Muslims.We shall,insha Allah be discussing other available options for Muslims.Our God is NOT a mean God.He takes something away from you only to replace it with something that's much better!
So He has forbidden interest based loans,how does he expect us to do business,what alternatives has He made available?
Islamic Banking System
Due to the severity of God's warning about Riba,financial experts of Islamic extracts had no choice but to work out an alternative to the already established interest based system of banking.Alhamdulillah,after a very painstaking research process,they were able to come up with a new system of banking that wouldn't involve interest in anyway.
This system of banking are very much in use in Islamic communities in the United Kingdom (U.K.) and the United States (U.S.). Some commercial banks in Nigeria,too have begun to integrate Islamic Banking into their banking system. For instance,the Halal account of the Stanbic IBTC bank and the non-interest current and saving accounts of Sterling Bank. Jaiz Bank is a 100% non-interest bank in Nigeria.Take Sterling Bank for instance.
When this product was introduced to us,we were happily surprised,at last,someone is taking God's warning serious enough to provide an alternative.
Briefly,what it entails is a simple registration for the savings account which would require no initial deposit.But,if you wanna do business and secure non-interest loans in the future,you'll have to open the current account which requires just a N5 000 initial deposit and a condition that you'll transact with it for up to a year after which you may apply for a loan to the tune of a million Naira! For more details,please,visit the nearest branch of Sterling bank. Another option to interest based loans is the non-interest or Islamic co-operative societies.
Islamic Co-operatives
There are several non-interest co-operatives today.Unlike those that demand for a percent or two interest on the money borrowed,the Islamic co-operatives make money from charges and dues paid by members,they sometimes do business with the money in their custody to make profit. During the Eid festive periods,some buy foodstuffs in bulk and sell to members and non-members alike at cheaper rates than it's obtainable in the open market,yet,they still get to profit from buying in bulk.
Some are already established,if there isn't any serving your immediate Muslim community,you can propose the establishment of one to serve you guys.
Charitable Offerings
Zakat is an annual compulsory offering the rich has to give in Islam.Beneficiaries of such offerings are clearly spelt out in the Quran.But we all know that there are conditions attached to this special offering.A major one being that,for money,you must be in possession,in Nigeria,today,of at least, between seven to eight hundred thousand Naira throughout the year that's not capital to a business or debts to be paid.
While so many fall into this bracket of people,very few are paying...it would surprise you that so many of those that are legible to pay this Zakat don't even know and therefore,are not paying at all.This is a challenge to our Muslim clerics!
Among those that know,some have entrusted their offering to some scholars who embezzle the funds and never let it reach those that they are meant for.But,that's not the bone of contention today,it's in fact a topic for another day. Today,we are concerned about what God said in one of those five verses of the previous post..."God prohibits Riba and permits Charity..."This reminds me of an instance that was related to me by a friend.
According to him,there's this man that has just arrived from Egypt we had studied and made money.The said man thought of how to help the rural women back home and came up with one of the most brilliant ideas out there.
Unlike the Government programs that would give meager amounts as loans,this man had decided to donate the sum of 2 million Naira as capital in a non-interest based co-operative society.This money would serve as the rock solid base that the co-operative needs and the women too,would start adding their donations too,to it.To cut the long story short,the 2 million has grown over the years into over 10 million Naira co-operative! This is an example of what I call 'Charity Re-circulation'
If you are rich,you can do the same for the less privileged in your immediate community,Assalatu group or any other Islamic community around you. By this method,you get to empower so many people from a single donation of yours!
This is an example of Sadaqatul Jaaree...the 'flowing charity'.It's the type of charity whose benefits never ceases...it continues to get to its donor for as long as it exists,just as mentioned in the above verse,it's multiplied in many folds as God Almighty wishes!However,this is a charity given or obtained through societal affiliations,there's yet another source of funding that can come from the family.
Personal Savings & Contributions from Family & Friends
Your family members don't have to be millionaires before you can get them to fund your business or any other project of yours that require funding.For instance,you just learnt how to operate a poultry or fish farm and the only thing that seems to be the problem is the capital.
In addition to your personal savings,you can raise your capital from family and friends.All you gotta do is write a compelling business proposal for your business,decide the minimum amount you need to start small and healthily too.Afterwards,you make a list of your family and friends that can afford to give out a few thousands without a qualm,then,add the names of those among them that would give but would love to have it back after a while.
Once you are through with that,you should write against each name how much you can get from them.Then,you set to work!
If for instance,you think Uncle B can give you N10 000,don't ask for ten,ask for like N15 000 or N20 000 so that in the end,you'll end up with the exact or a little more than you projected.This method would work like a magical charm if you assure them that they are like your shareholders with whom you'll share your profits according to the amount they give.I've done it before and believe you,me,I got much more than I bargained for!
But,here's a STERN warning,DON'T ASK FOR PEOPLE'S MONEY IF YOU ARE STILL LEARNING ABOUT THE BUSINESS...DO NOT EXPERIMENT WITH OTHER PEOPLE'S MONEY,DEMAND FOR THE MONEY ONLY WHEN YOU ARE SURE OF MAKING PROFITS!!!
I gave the above warning to emphasize on the importance of knowing the 'ins & outs' of your proposed business and of course,that you have a hungry market to sell to!This is how to ensure you'll be making profits and not loses...do your homework well.For more info on business tips & tricks,please register as a member @ The Rich Kid's Treasure Box it's FREE!!!
As you can see,truly,God has provided a couple of alternatives to Riba,this is why it's 100% haraam and on NO condition would it be permissible...THERE'S NO SUCH THING AS 'I GOT NO CHOICE' WHEN IT COMES TO INTEREST BASED LOANS!
At this juncture,I shall draw the curtains on this topic as I wish you a happy Jumu'a day.May we experience loads of it in good health and prosperity in our lifetime.Ameen.
Salaam 'alaikum warahmatullahi wabaraakatuhu!
So He has forbidden interest based loans,how does he expect us to do business,what alternatives has He made available?
Islamic Banking System
This system of banking are very much in use in Islamic communities in the United Kingdom (U.K.) and the United States (U.S.). Some commercial banks in Nigeria,too have begun to integrate Islamic Banking into their banking system. For instance,the Halal account of the Stanbic IBTC bank and the non-interest current and saving accounts of Sterling Bank. Jaiz Bank is a 100% non-interest bank in Nigeria.Take Sterling Bank for instance.
When this product was introduced to us,we were happily surprised,at last,someone is taking God's warning serious enough to provide an alternative.
Briefly,what it entails is a simple registration for the savings account which would require no initial deposit.But,if you wanna do business and secure non-interest loans in the future,you'll have to open the current account which requires just a N5 000 initial deposit and a condition that you'll transact with it for up to a year after which you may apply for a loan to the tune of a million Naira! For more details,please,visit the nearest branch of Sterling bank. Another option to interest based loans is the non-interest or Islamic co-operative societies.
Islamic Co-operatives
There are several non-interest co-operatives today.Unlike those that demand for a percent or two interest on the money borrowed,the Islamic co-operatives make money from charges and dues paid by members,they sometimes do business with the money in their custody to make profit. During the Eid festive periods,some buy foodstuffs in bulk and sell to members and non-members alike at cheaper rates than it's obtainable in the open market,yet,they still get to profit from buying in bulk.
Some are already established,if there isn't any serving your immediate Muslim community,you can propose the establishment of one to serve you guys.
Charitable Offerings
While so many fall into this bracket of people,very few are paying...it would surprise you that so many of those that are legible to pay this Zakat don't even know and therefore,are not paying at all.This is a challenge to our Muslim clerics!
Among those that know,some have entrusted their offering to some scholars who embezzle the funds and never let it reach those that they are meant for.But,that's not the bone of contention today,it's in fact a topic for another day. Today,we are concerned about what God said in one of those five verses of the previous post..."God prohibits Riba and permits Charity..."This reminds me of an instance that was related to me by a friend.
According to him,there's this man that has just arrived from Egypt we had studied and made money.The said man thought of how to help the rural women back home and came up with one of the most brilliant ideas out there.
Unlike the Government programs that would give meager amounts as loans,this man had decided to donate the sum of 2 million Naira as capital in a non-interest based co-operative society.This money would serve as the rock solid base that the co-operative needs and the women too,would start adding their donations too,to it.To cut the long story short,the 2 million has grown over the years into over 10 million Naira co-operative! This is an example of what I call 'Charity Re-circulation'
If you are rich,you can do the same for the less privileged in your immediate community,Assalatu group or any other Islamic community around you. By this method,you get to empower so many people from a single donation of yours!
"That
which ye lay out for increase through the property of (other) people, will have
no increase with Allah. but that which ye lay out for charity, seeking
the Countenance of Allah, (will increase): it is these who will get a recompense
multiplied." - Q: 30:39
This is an example of Sadaqatul Jaaree...the 'flowing charity'.It's the type of charity whose benefits never ceases...it continues to get to its donor for as long as it exists,just as mentioned in the above verse,it's multiplied in many folds as God Almighty wishes!However,this is a charity given or obtained through societal affiliations,there's yet another source of funding that can come from the family.
Personal Savings & Contributions from Family & Friends
Your family members don't have to be millionaires before you can get them to fund your business or any other project of yours that require funding.For instance,you just learnt how to operate a poultry or fish farm and the only thing that seems to be the problem is the capital.
In addition to your personal savings,you can raise your capital from family and friends.All you gotta do is write a compelling business proposal for your business,decide the minimum amount you need to start small and healthily too.Afterwards,you make a list of your family and friends that can afford to give out a few thousands without a qualm,then,add the names of those among them that would give but would love to have it back after a while.
Once you are through with that,you should write against each name how much you can get from them.Then,you set to work!
If for instance,you think Uncle B can give you N10 000,don't ask for ten,ask for like N15 000 or N20 000 so that in the end,you'll end up with the exact or a little more than you projected.This method would work like a magical charm if you assure them that they are like your shareholders with whom you'll share your profits according to the amount they give.I've done it before and believe you,me,I got much more than I bargained for!
But,here's a STERN warning,DON'T ASK FOR PEOPLE'S MONEY IF YOU ARE STILL LEARNING ABOUT THE BUSINESS...DO NOT EXPERIMENT WITH OTHER PEOPLE'S MONEY,DEMAND FOR THE MONEY ONLY WHEN YOU ARE SURE OF MAKING PROFITS!!!
I gave the above warning to emphasize on the importance of knowing the 'ins & outs' of your proposed business and of course,that you have a hungry market to sell to!This is how to ensure you'll be making profits and not loses...do your homework well.For more info on business tips & tricks,please register as a member @ The Rich Kid's Treasure Box it's FREE!!!
As you can see,truly,God has provided a couple of alternatives to Riba,this is why it's 100% haraam and on NO condition would it be permissible...THERE'S NO SUCH THING AS 'I GOT NO CHOICE' WHEN IT COMES TO INTEREST BASED LOANS!
At this juncture,I shall draw the curtains on this topic as I wish you a happy Jumu'a day.May we experience loads of it in good health and prosperity in our lifetime.Ameen.
Salaam 'alaikum warahmatullahi wabaraakatuhu!
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