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Attique ur Rehman

Student,

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Interest-free banking, real investment, profit and loss sharing, equity... let's bank the Islamic way!

If the Bank works in the following way...?

. A depository institution
. No interest, only service charges
. Only real investment ( like property, cars, gold, business and projects etc.)
. Focus on earnings rather than savings
. Institutionalize the charity through this institution. The charity will be advanced as a loan with three underlying conditions..(1)- if the borrower gets profit, he will return the principle with a little bit profit. (2)- if the borrower only achieves break even, only return the principle. (3)- if he faces a loss, then there is no need to return the principle as charity is not meant to be taken back.

And what if some one wants a car, a furnished home, or even Gold perhaps for her daughter's wedding? well...simple...since you already possess real assets, and you own it, you can charge your own price and advance the asset on easy installments...

A group of think tanks will be consistently working on the new projects, businesses and ideas which will allow the investors to invest their savings in it on profit and loss sharing basis in real terms.

Result: Economic Growth and Development in real terms.

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    Dec 11 2012: .
    "(1)- if the borrower gets profit, he will return the principle with a little bit profit.
    (2)- if the borrower only achieves break even, only return the principle.
    (3)- if he faces a loss, then there is no need to return the principle as charity is not meant to be taken back."
    "..well...simple...since you already possess real assets, and you own it, you can charge your own price and advance the asset on easy installments..."


    Nothing could collapse a banking system faster.
    You essentially argue what is a zero-risk system for the applicant, where the worst case scenario is that I lose whatever assets I choose to use to back the loan, which can be entirely expendable and worthless as I want because I get to determine its value.

    1.Heres a broken down car
    2.I want a £40,000 loan for a business
    3.I cant pay the loan back and the business closed down
    4.Take the broken down car or just write the whole thing off entirely.

    It would be great for me and I'd happily visit a bank like this is Saudi Arabia and run off with a few million, but I wouldn't want this in a country I live in.

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