Islamic banking courses on Murabaha (Part 1)

http://www.ethicainstitute.com

Learn about the most widely used Islamic finance product: buy an asset for the customer; sell the asset at a premium in installments to the customer. That's a Murabaha. In these modules we introduce Murabahas and walk you through the first 5 of the 7 important steps necessary for a Murabaha's valid execution.

Wrap up the 7 steps to executing a Murabaha: we cover steps 6 and 7 and go on to discuss common mistakes bankers make when executing Murabahas and how to avoid them. We also look at risk management, default, early repayment, and profit calculation in Murabahas.

So how does it work in the real world? We look at 6 practical examples of Murabahas based on installment repayments, bullet repayments, advance payments, and credit and import Murabaha.

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Education

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• Islamic banking job
• islamic finance job
• islamic finance certification
• islamic banking courses

[AbdullahSeymour]

It is riba, no doubt about it. It is riba from beginning to end. There is absolutely nothing Islamic about banking. It is haram, the money is haram, the transactions are haram and the ulamah who underwrote it all are a disgrace.

The bank buying the car and selling it to you for 'profit', tell me, is that one transaction or two transactions?

[TheOujdie]

@AbdullahSeymour you can do that too. buy something worth 10 USD, you sell it to me for 12 USD lets say. it kind of commer ( tijarah ). nothing wrong with that. you can sell it for less its up to you

[TheOujdie]

@AbdullahSeymour with interests rate, the risk for clients to pay much more than what they have borrowed is very high. Islamic banking doesn't allow that, you can only exchange money for assets not for money ! Interest rate could rise every time you fail to pay back on time which make it difficult for poor people. while the profit of Islamic banking is FIXED. they sell you a car which cost 2000 for 2200. you agree on that and that's it

[TheOujdie]

@AbdullahSeymour no its not Riba my friend, its not an intresst ! one of the sahaba ( friends) of prophet went to the market and he asked the seller of some good ! how much is this ? the seller replied 10 Dinar or Dirhams. He said consider it as its sold. Then he went and looked for a buyer who was willing to pay 13 dh for it, he gave 10 to the first seller, good was delivered and he kept 3 for himself. Riba is interest rate where you borrow money to pay it back with more money

[AbdullahSeymour]

And yet 'Ethical Institute' calls it halal. Shocking.

[AbdullahSeymour]

"The bank purchases an asset, e.g a car, and sells it to the customer for a profit". This is riba, as two transactions have been tied into one.