Why Islamic Finance Part 2

What makes Islamic finance different from conventional finance? And what makes it better? We look at 3 real-world examples and find out. We also introduce you to the 4 principles that guide Islamic finance transactions.

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[TheEdgee]

What happens if the homebuyer cannot pay his instalments? Does the bank re-buy his share, fine him a sum of money, find another home buyer or something else?

[TheIslamicfinance]

@eljustin07 brother interest can be compounded and become huge but the rent can't !! The key in Islamic finance is it wl always be backed by asset ,hence debt can't be multiplied as compaired to conventional finace.Thanks

[eljustin07]

Interesting concept but it is clear that the "rent" is equivalent to interest so in effect this system is conventional banking in another form. This video series does not point out products like home loans do not "compound" over the life of the loan. The terms are fixed (sans adjustable rates). And in terms of the Nigeria example- the example shows the country not repaying any of the 5 billion dollar debt- of course its future value will spiral out of control when there is repayment

[attaqwaa]

very informative video