Somalia leading in Islamic banking

[Neptune]

 

[Guure⁸]

Banks do interest tho

 

[Gacmeey]

Banks do interest tho

Yup and not normal fake Islamic bank hidden interest, they do clear cut riba loans

 

[Guure⁸]

Yup and not normal fake Islamic bank hidden interest, they do clear cut riba loans

So they aren't islamic banks cause they do riba lol

 

[Homerlilian2.0]

Not a thing to be happy about Saxiib these banks are involved in interest even Muslim one

 

[Gacmeey]

So they aren't islamic banks cause they do riba lol

The only Islamic thing about them is the location they are based in and the people who work there.

 

[Neptune]

So they aren't islamic banks cause they do riba lol

The only Islamic thing about them is the location they are based in and the people who work there.

All of the banks in Somalia say they are Sharia compliant with their services like financing.

 

[Guure⁸]

All of the banks in Somalia say they are Sharia compliant with their services like financing.

Yes they say but they aren't, they do every type of riba

 

[Gacmeey]

All of the banks in Somalia say they are Sharia compliant with their services like financing.

I’ve spoken with a senior figure at amal bank in Garowe on how getting a loan works. He gave me an example of me borrowing $100 and I would have to pay back $112 (with the 12 dollars being disguised as fees I’m assuming. He didn’t say that tho and I didn’t enquire further because I lost interest at that point). Point is just because someone claims something doesn’t mean it is true.

Also loans are a form of sadaqah not profit. The commercialisation of loans is an extreme perversion of what it is there for.

 

[New World]

They renamed it as "fees" instead of calling it "interest.". We need to accept that the world runs on financing. All of the people I know that has rejected loans or interest are poor.

 

[Neptune]

I’ve spoken with a senior figure at amal bank in Garowe on how getting a loan works. He gave me an example of me borrowing $100 and I would have to pay back $112 (with the 12 dollars being disguised as fees I’m assuming. He didn’t say that tho and I didn’t enquire further because I lost interest at that point). Point is just because someone claims something doesn’t mean it is true.

Also loans are a form of sadaqah not profit. The commercialisation of loans is an extreme perversion of what it is there for.

Honestly the whole topic of Islamic finance is a bit complicated. There are ways to avoid riba though. If a bank buys an asset I want and makes me pay installments that are higher than the original value, that's not haram. The main problem is compound interest. That's the real evil.

 

[Chaseyourdreamzz]

I even saw multiple somali banks operating in southeastern African countries

 

[Medeea]

I’ve spoken with a senior figure at amal bank in Garowe on how getting a loan works. He gave me an example of me borrowing $100 and I would have to pay back $112 (with the 12 dollars being disguised as fees I’m assuming. He didn’t say that tho and I didn’t enquire further because I lost interest at that point). Point is just because someone claims something doesn’t mean it is true.

Also loans are a form of sadaqah not profit. The commercialisation of loans is an extreme perversion of what it is there for.

It’s not interest. The markup is agreed on upfront and doesn’t change like interest does. Whether you pay it off in one month or in 30 years, the total balance stays the same. $112 in this case.

From what i have seen with my dad, the banks he deals with offer 0% interest. They use an upfront markup aka murabaxa for small loans. And for bigger business loans they use mudarabxa (profit/loss sharing) or musharaka (bank as a partner).

 

[Gacmeey]

It’s not interest. The markup is agreed on upfront and doesn’t change like interest does. Whether you pay it off in one month or in 30 years, the total balance stays the same. $112 in this case.

From what i have seen with my dad, the banks he deals with offer 0% interest. They use an upfront markup aka murabaxa for small loans. And for bigger business loans they use mudarabxa (profit/loss sharing) or musharaka (bank as a partner).

You cannot markup a loan because a loan is a voluntary act to help someone so you can’t charge for it. It’s not a service you are selling and any charge above the loan amount is interest. If I borrow $100 I should be paying back $100 (not including mudarabxa and musharaka because those are more investments than loans)

 

[NordicSomali]

It’s not interest. The markup is agreed on upfront and doesn’t change like interest does. Whether you pay it off in one month or in 30 years, the total balance stays the same. $112 in this case.

From what i have seen with my dad, the banks he deals with offer 0% interest. They use an upfront markup aka murabaxa for small loans. And for bigger business loans they use mudarabxa (profit/loss sharing) or musharaka (bank as a partner).

It’s still a cost borrowing, it’s interest masked as something halal.