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Is it permissable for Islamic Banks to make 'profit' as opposed to 'interest'?

Question:

Is there any such thing as an islamic bank? they say it is profit not interest is this legit?

Answer:

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The Islamic Banks that are appearing in the high streets are considered as acceptable alternatives to the regular banks by the Shariah Scholars such as Mufti Taqi Usmani (Hafizahullah). Because their financial products, including personal and home finance, are based upon Islamic principles one should use their services rather than going to the normal banks which are entangled in all sorts of unislamic practices which are sinful for a Muslim. Before taking out a product with any particular financial institution, be it a bank or an investment company, one should also check whether they have a Shariah board of scholars that supervises them. I say this because some so called "Islamic" investment schemes have been proven to be falsely claiming they were Shariah compliant but were in fact not.


Mufti Mohammed Sajjad

Wallahu Aalam bis-sawab

Please remember us in your Duas...

The answer to this question is the opinion of the scholar and does not reflect the opinion of other scholars of As-Suffa Institute and As-Suffa Institute as an organisation.
 

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