Hello,
I have done searches at several forums because I know there were threads about this I have read before, but I found nothing.
Does anybody know of a method of structuring a lease-option so that it is compliant with shariah law, but still delivers the risk profile and returns of a standard lease-option?
Has anybody done one???Cheers
skippygirl[blink]
One of my friends told me some thing about this subject, can not quite remember, but it go’s some thing like this…
Firstly you would need a man as your spokes person..
Secondly all business is through the Elder of the church.
Thirdly, they Can not borrow money, [there is a way around it] I didn’t go into it but I think the wording has to be different , and they can pay a lease untill the property has been paid off
Then you give them the Deeds…I dont know if some one can tell me where I am wrong..or I can ring my friend and get him to explain it to you.
I am EZY this is not Ezy but worth checking. [buz2]Hi Skippy
I have done some training in ‘Islamic’ type finance and have made a couple of posts here before. i have never used one of these loans and am a bit rusty now!
There are some commercial lenders out there offering loans structured like lease options (eg Iskan http://www.iskan.com.au/) so that no ‘interest’ is payable. (these are approved by fatwa issued by various Imans).
If you want to do it yourself, then a standard lease otpion should be acceptable. I think the main problem is the Koran prohibits someone to profit via lending money for interest.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
ok my wording was wrong , but the gist of it was right..if you would like me to find out from my friend who does the loans email me
[email protected]
it costs nothing to ask and the answer may be just what you are looking for.
problem is solved EZY[angel]Heres something I wrote up in another forum a while back. Thought you might be interested:
Muslim banks and credit unions provide “financial accommodation” where they own all or part of the house and the home-buyer pays something akin to rent.
The reason for zero interest: It’s immoral, because it involves the lender demanding a fixed and certain return without assuming a share of the risk inherent in the transaction. If things go awry, it also involves the lender using his collateral to recover his money regardless of the fate of the borrower (this is important in Muslim society, as it interfers with family/tribe/village relationships).
So how do you run a bank without changing interest: You offer a pre-determined share in the in the banks profit or losses for deposits. The bank then takes an equity position in business activities it’s financing, sharing it’s profits and losses on an agreed basis.
Christians had the same problem, up until 1540’s, when John Calvin redefined the definition of usury as charging exorbitant rates of interest.
For more info:
-Islamic Banking & Finance by Butterworths (London 1986).
-Unlaw gain & Legitimate Profit in Islamic Law by Nabil A. Saleh (London 1992).Rgds.
Lucifer_auThanks everyone, appreciate your info.
Ezy I will email you direct, thanks.
Cheers
skippygirl
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