If you are an expat in
UAE, a lot of things out there which can provide you different kinds of
financial opportunities. Like we can take the example of a banking system which
is perfectly running following the international standards. On one side we have
conventional patterns while on the other side, the Islamic banking system is
working attracting the majority of customers. What is the most suitable package
is Islamic loan which is a type of loan being provided by Islamic banks
following the sharia rules.
This is totally opposite to the traditional system
and does not follow the commercial interest rate regulations. It is basically
held as an interest-free account that is available for all kinds of customers
including local as well as outsiders. There are few important things like
profiting via interest on one’s money is not allowed in Islamic banking.
What are the other
important points that one should need to read before taking any service
especially home loan or best personal
finance in UAE are these:
·
As I said interest
rate is strictly prohibited in Islam and none Islamic bank provides such
services and it is obligatory on the side of a customer. Well, it is only for
Muslim clients but international investors or traders who want to take loan
opportunities with interest rates can use the option of a conventional system.
Both are running parallel in the UAE to facilitate all kinds of account
holders.
· What is important
for Islamic banking users is to make sure their money is far from dealings of
interest rates by using such options. There are many other things besides the
interesting part like the Islamic system makes sure that the money which is
going to be invested should be in an interest-free project so that to get the
profit in a pure way.
·
Keep one thing in
your mind that the money kept in such a bank account cannot be invested in
businesses that deal in goods and services which are prohibited in Islam. Why
so many restrictions need to understand by expatriates so that to save
something for their future.
·
It is written in
Sharia Laws that money can be used for your benefits in an exchange of goods
and you cannot take interest other than your actual income?
You can use any type of
account because the UAE banking sector is full of options. One can either open
an Islamic account which is best suited for people who are not willing to take
interest rate. Most of the people are not interested to use savings or allow
their money to be invested in businesses that are working on conventional
systems. Also, such clients avoid any dealing that is prohibited by the sharia-compliant
law.
Working
of a loan without any interest rate
A big question that is
asked by the frequent reader is that how this system works? Very simple, we all
know that there is no fixed interest rate that would be given on a specified
time period using an Islamic bank account. We will share an example here about Islamic home loan UAE which is much
related to the majority of the expatriates. Before moving towards this we will
discuss why it is necessary to take a home loan?
The majority of the
expatriates live in rental apartments while doing jobs in different companies.
The rent they have to pay on every month is pretty much high and it cuts a big
amount at the overall salary amount. What is the alternative that should need
to be focused in the form of home loans through a private or public sector bank?
Here most of the people get dodged by brokers and captured into interest rate
package. you cannot survive with a loan package with an interest rate because
the actual amount to be paid will never be paid back due to the highest amount
of inters rate.
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