Riba is prohibited
Instead, Islamic financial institutions offer a variety of financing alternatives for customers based on mutual sharing of the profits and losses and leasing arrangements.
Avoiding ambiguous transactions (gharar
Avoiding investments in prohibited activities
Profit- and loss-sharing (mudarabah
Limra Assets offers shariah compliant financing and flexible loan solutions. Click here to find out more
About Limra Assets
Limra Assets is a Shariah-compliant financing solutions financier that provides loans for property financing, SME businesses loans and gold investment. We offer a range of financing options to help individuals and businesses, including alternative financing for businesses that are unable to obtain funds. Our goal is to provide access to funds for investments in a Shariah-compliant manner that focuses on transparency, customer service, and competitive rates, Limra Assets can be a valuable partner in your gold investment journey.
If you’re interested in learning more about Limra Assets and our Shariah-compliant financing solutions for property purchases, gold purchases or business loans, please contact us for more information.
Disclaimer:
It is important to note that taking out a loans for any purchases and gold investment, whether through Limra Assets or any other lender, carries risks and should be approached with caution. It is important to carefully consider your financial situation and investment goals before taking out a loans, and to ensure that you fully understand the terms and conditions. Additionally, investing in gold carries its own risks and should be done with the guidance of a financial professional. This information and all external links are provided for educational purposes only and should not be considered financial advice.
Many will already be aware that Islamic and conventional banking differ in several ways. There are a few important principles of Islamic Finance that govern the banking system and differentiates it from conventional banking. When trying to understand Islamic finance, one must remember that it is based on the Quran and Islamic teachings which emphasises on moderation and fairness for the prosperity of not just individuals but the community and nation, too.
Riba is prohibited
Riba has been translated as usury or excess, and in Islamic teachings, the giving or taking of interest is prohibited. The main reason for this is that Islam believes that lending with interest is an unjust practice that is only advantageous to the lender, while exploiting the borrower.
Instead, Islamic financial institutions offer a variety of financing alternatives for customers based on mutual sharing of the profits and losses and leasing arrangements.
Avoiding ambiguous transactions (gharar)
Islamic finance does not support contracts where items being transacted are uncertain or are of ambiguous nature and where parties involved have unclear expectations or lack certain knowledge to make informed choices. It is considered a form of gambling, an act which is prohibited in Islam. By avoiding these ambiguous arrangements, the customer is protected fairly and avoids excessive risks. As such, Islamic banks will not participate in investments in derivatives, options and futures.
Avoiding investments in prohibited activities
Muslims are prohibited from engaging in transactions that are un-Islamic in nature. This includes gambling as it involves risk-taking and uncertain outcomes. Other prohibited transactions are those that involve investments in alcohol, pork and the like. As such, Islamic Financial Institutions will not finance ventures involving prohibited activities. Likewise, Muslim investors cannot invest in projects that participate in un-Islamic activities.
Profit- and loss-sharing (mudarabah)
To ensure fairness, Islamic banking is one where customers become “partners” of the financial institution and whatever profits or losses are shared together. For example, to finance the purchase of a house, an Islamic financial institution may offer to purchase the property outright and sell it to the customer at an agreed marked-up price paid in instalments over a period of time, at the end of which, the property ownership is turned over to the customer.
Limra Assets offers shariah compliant financing and flexible loan solutions. Click here to find out more.