Islamic Bank Loan System

While Islamic banking and conventional western banking share many similarities, they are fundamentally different in countless ways. One example of which being the area of loans and debts, which in order to comply with Shariah law must be handled entirely differently. Islamic banking is governed by strict rules and regulations, which in many instances date back thousands of years. The deeper your knowledge of key issues like loan and debt, the greater your career potential in this fascinating and critically-important contemporary sector.

Study the key differences between western and Islamic banking standards in the handling of loans and debts. Explore the illegality of commercial interest under Shariah law, along with guidance from the Holy Qur’an on loans and debts. Additional topics introduced include the substance of loans, repayment of the principal only, the time value of money in loans and debts, instructions/obligations for the debtor and creditor, Husnal Qadha (gracious payment of loan/debt), remitting a part of a loan and prepayment rebate, penalty on default, Hawalah (assignment of debt) risk and reward in pledge, benefits from pledge and more.