Islamic Loan

Islamic Loan

A loan that interest cannot be charged on. Instead, the loan is structured using discounts, sale or lease, profit participation, or repurchase agreements.

Islamic Loan

Any form of financing made according to Islamic law, which forbids the payment or receipt of interest. An Islamic loan may be an interest-free loan, but often it is a more complex transaction. For example, a bank could buy an asset for cash and then re-sell it to the "borrower" for a profit such that the profit is the same as the bank would have made had it extended a regular loan. Other types may involve the bank becoming a partner with the "borrower" so that both co-own the asset or business that the loan finances, and the borrower gradually buys the bank's share of ownership with a series of payments. Strictly speaking, most Islamic loans are partnerships or joint ventures, but they are called loans because they accomplish much the same thing as conventional loans. See also: Islamic finance, Murabaha, Mudharaba, Musharika.
References in periodicals archive ?
Here are some of the most prominent Islamic car financing banks, which are providing services to the customers under the terms and conditions of Islamic loan system.
The strong expansion of Malaysian Islamic finance, which pushed Islamic loan share to 27.
Saudi Binladin Group (SBG) has requested a second extension on a $218m (SAR817m) Islamic loan being used to fund construction at the kingdom's Grand Mosque, sources told Reuters .
7 billion ($720 million) Islamic loan from banks to finance the second phase of building King Abdullah Port.
In March 2016, both banks, together with BTMU, participated in a syndicated Islamic loan facility, structured as murabaha and consisting of $1.
6) Islamic loan facility to banks nearly four and a half years ahead of scheduled maturity in June 2020.
Jebel Ali Free Zone has made an early repayment of its Dh2 billion Islamic loan facility to banks nearly four-and-a-half years ahead of its scheduled maturity in June 2020.
2 million) Islamic loan for the development of a luxury hotel project, it was announced on Tuesday.
Summary: State-owned firm says first loan is worth $7 billion in US dollars while second is $3-billion Islamic loan in Saudi riyals.
Kuwait Finance House (KFH) on Wednesday has revealed in a statement that its arm in Turkey - Kuveyt Turk - has been successful to raise a dual-currency syndicated Islamic loan of $350 million.
DUBAI: The Turkish subsidiary of Kuwait Finance House (KFH) has secured a $350 million syndicated Islamic loan, Kuwait's largest lender said yesterday.
2 billion ($599 million) Islamic loan by half to 1.
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