Muslims, how does the Islamic Banks offer interest free loan?
It is considered haram under sharia law to charge riba or usury. So sharia compliant banks can't simply lend you money and ask you to pay back the money with interest after a term like non sharia compliant banks would. Instead they have many different methods of lending money that are considered fairer which involves thinks like risk sharing and profit sharing etc. For instance in a business loan, the bank might join in the business with the business owner so after having lent money to the business owner to get his business going the bank will take a share of the businesses profits, thus sharing with the business owner in the risk he's taking. Another way for example, instead of lending a person a mortgage to buy a house and expecting the money to be repaid with interest, the bank will buy the house and sell it to the person who pays for the house in installments. In both cases the banks are still making a profit but instead of the borrower taking all the risks, the bank also shares in the risk with the borrower.
Did you know your American Democracy is only temporary?
"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship."
How do you politely tell people they can't use your vacation home?
My friends has a really nice cabin in the mountains, but too many of his relatives and other friends keep asking to borrow his cabin. How does he tell then no? He does have two or three friends and relatives that he doesn't mind lending it to because they are very close, but he doesn't like lending it to other relatives and friends he is not that close with. He made me the offer to borrow it if I want, but others whom he has never made the offer ask him. I agree with him that its kinda awkward and rude for people to ask to borrow something like that unless you make the offer that they can borrow it. So how does he tell them no, in a good way?
Is it wrong to not let someone borrow your laptop?
If you do not feel comfortable in lending it,then don't do it. It is your and you know that you take care of it but the question is will someone else ?
How do Islamic banks make money if they can't charge interest because of shari'a?
I've taken loans from Islamic and non-Islamic banks. They all make money, but differently.Let's say you want to buy a car for $10,000, over 5 years.Non-Islamic bankThe bank says: $10,000 compounded on a Monthly basis over the course of 5 years at a 4% interest rate would be worth: $12,210. They tell you let's make the monthly payment $200.They calculate the interest every month. Your first payment would be fully interest, your last one would have no interest in it.During the loan you can:Delay a payment (only interest for that is added to the loan, the 5 years increases)Take more money on the same loan (Refinance)Pay partially or fully.During the loan the bank can:Increase the interest rate (in some places, without telling you, and you keep paying the same $200 monthly but the 5 years increases)If the rate increases, or any payment is delayed you will pay more than $12,210.The loan is for $10,000 with interest payments monthly. You don't know if it will finish on the exact date.Islamic bankThe bank says I will buy the car for $10,000 , would you buy it for $15,000? (I say 15 for simpler calculations, it's usually just a little higher than a non-Islamic bank). We don't call it interest, it's profit.If you say yes they will buy it. You still have the option to refuse buying it from the bank.The $15,000 will be split into 60 payments of $250.During the loan you can't:Delay a payment (you have to pay it)Take more money on the same loan (Refinance), you can take a new loan.Pay partially.During the loan the bank can:Force you to pay a payment.If you fully pay an Islamic loan before it's completion, most Islamic banks would pay you an "early repayment reward", which would reduce their profit.The loan is for $15,000 with NO interest payments. You know the exact date when it will finish.