Halal investing can easily include ijara mortgages. The definition of this type of investing is about putting your money in with companies and products that fall in line with sharia compliant principles. For example, it’s not permissible to make profits off the debt. That takes some products like bonds out of contention for Muslims.
Here’s an overview of some of the things you need to know.
Sharia finance law is one of the cornerstones of good Halal investing which can include an ijara loan. The principles involved include using any kind of financial tool to build a community as well as ideas like ethics and social justice. Sharia law outlines several restrictions Muslim investors need to comply with.
Here are just a few of the ideas that are prohibited:
Charging or Paying Interest or Riba
Charging interest on payments or any kind of investment that includes an element of interest is prohibited in Islam. Interest is exploitative . Ijara Community Development Corp offers ijara mortgages that are halal. There are a few factors that make us different including our user friendly web based application. Of course, our ijara loan alternatives are Riba free.
Read on to find out more about what you need to avoid when you’re looking at halal investing.
There investments prohibited under Islamic law. For example, selling alcohol and gambling are not allowed under any circumstances when investing. However, the services we offer don’t fall under that category. In fact, our programs require documentation like verification of employment and income as well as assets and large deposits.
Ijara Mortgages and Submitting Documents
Because we want everything to be Sharia Compliant and Halal, we have put some general instructions for submitting the necessary documents on our website. Here’s a helpful tip. If you can scan your driver’s license, you’ll get a better image to send. Faxing a copy of those types of documents can make the picture unviewable.
Finally, here’s a few final tips on halal investing in what you should be looking for.
Sukuk are a sharia compliant alternative to more traditional bonds. These do not bear interest. They are called Islamic bonds. They are quite often classified under conservative investments. These are able to generate income for investors who are looking to stay within sharia compliant rules.
It’s also important to consider property when you are thinking about Halal investments. Ijara mortgages are a great vehicle that take into account social justice and ethics. The ijara process is based on a template used in the United States for over two decades. It’s similar in some ways to an automobile lease. The formula we use sets up a relationship between a lessor and lessee.
The trust complies with sharia law. The trust purchases the property at an agreed on price.