Islamic Bank In Australia, With All The Technology Of A Modern Bank
What Is Islamic Banking?
Islamic banking, also referred to as Islamic finance or shariah-compliant finance, refers to finance or banking activities that adhere to shariah (Islamic law). Two fundamental principles of Islamic banking are the sharing of profit and loss and the prohibition of the collection and payment of interest by lenders and investors.
Main Features of Islamic Bank Australia
* Islamic banking, also referred to as Islamic finance or shariah-compliant finance, refers to finance or banking activities that adhere to shariah (Islamic law).
* Two fundamental principles of Islamic banking are the sharing of profit and loss and the prohibition of the collection and payment of interest by lenders and investors.
* Islamic banks make a profit through equity participation, which requires a borrower to give the bank a share in their profits rather than paying interest.
* The Islamic Bank in Australia have windows or sections that provide designated Islamic banking services to their customers.
How do Islamic banks make a profit?
Although Islamic banks prohibited from giving or taking an interest, they can generate profit through several Shari’ah-compliant means:
1. Ijara is when banks buy an asset, such as a car, and lease it to the customer. Ownership remains with the bank until the customer pays off the lease. During this time, the bank is responsible for the maintenance of the asset.
2. Murabaha means the bank acts as an intermediary to buy the asset, sold to the customer, plus profit. The customer accepts the help with deferred payments.
3. Wakala refers to a contract of agency or delegated authority. The bank is appointed much like an individual agent to carry out a specific task on the customer’s behalf. The bank lends its expertise for a set duration for an agreed-upon profit.
4. Salam could be considered forward financing or as a kind of debt – the institution pays for specified assets in advance, which the seller will then supply to quality, quantity, and time the parties have pre-agreed.
Choose Best Islamic Housing Loans
Compare and apply for the best Islamic Bank Loans in Australia. Is this home loan Takaful or following Shariah principles? Is it Riba-based? Simple, follow our guide to find a mortgage that matches your faith. We’ll tell you which concept your home financing bases on and how you can ensure the best protection for your family.
With our high finance amounts, facility tenor of up to many years, attractive profit rates, and quick turnarounds, it makes the process of financing your dream home as smooth as possible. Our experienced Islamic Bank Home Loan representatives will visit you at your convenience to provide a detailed walkthrough of the application process.
Benefits
* Attractive and highly competitive profit rates
* 1% Processing Fee
* Easy documentation and quick approvals
* Low rate on Life Takaful
* Enrolment into Priority Banking
* Finance solutions available for transfer/registration and brokerage fee
What is Islamic Bank Mortgage?
Many people think that a halal mortgage is better than a conventional mortgage because there is no interest rate. That is why even Non-Muslims are interested in the system.
Types of sharia mortgage
The three types of halal mortgage alternatives are:
- Ijara
- Diminishing Musharaka
- Murabaha
Islamic Bank Mortgage is a ‘mortgage alternatives’ and functions as no-interest home purchase plans. Though there are several variations across the market, all work in the same fundamental way: the bank buys the property on your behalf and becomes the legal owner.
Your monthly payments function more like rent, with a portion going towards buying out the property owner’s stake. At the end of the term, you should either have repurchased the property or have an outstanding sum left to settle before becoming the legal owner.
No comments:
Post a Comment