Refinancing Auto Loan – Reveal the Facts Here!

As a matter of fact, a vehicle is a very useful thing to have and it helps a lot especially in case you have a family. However, paying for it is another topic, which can be sometimes hard to decide what the best option would be. Therefore, in this article, I will focus on a couple of nice facts when it comes to refinancing auto loan.

What should you do in case you own a bad credit history?

Auto loan for bad credit is another huge advantage when you need to recover from any bad situation. However, you should work on getting low interest car loans. Otherwise, you will end up in a worse situation than before.

What are the problems that people normally have in this context?

Normally, the average person gets a beater from one of these “buy here pay here” places and they spend a small sum for a car that just barely works. Later, it breaks down and you have to pay a lot of cash to repair it.

Others spend a fortune, get into debt and find out that they have to get an auto refinance loan. So what do you need to know about automobile refinance? Keep reading as we help you get all the information you might need.

First, what is my first golden tip for you?

Indeed, you should avoid used car loans. In this case, the risk for the lender is really high due to the low value of your vehicle. In case you can not pay the money back, your low value vehicle can not help the lender that much to get his money back. Therefore, you will definitely suffer from high auto refinance rates.

Second, what is the #1 mistake that almost each one does?

While this financial aid makes you jump for joy as you will not have to pay as much each month, there is one downfall to it. When you are not shoveling out as much money to pay on your bill each month, you are tacking on more money that you have to pay towards it in the long run.

Do not let this stop you though. Why?

You are not the first and not the last one who is interested to get an accepted refinance application. It works fine as long as you have a good overview about your monthly expenses and how much you can pay as monthly installments. You should use an auto calculator loan to have a concrete overview about your plan.

What should you think of before you finally decide?

Indeed, you should pay full attention that you have to pay exit fees of the debt contract that you have right now. What does this mean? For example, when you sign up for a new car finance, they will state in the contract that in case you decided to end it for whatever reason, you will have to pay.

Where should you start?

In fact, you might not be sure where to go for refinancing auto loan. There are a number of places that you can go. Just by doing a search online, you can find quite a few of them.

Based on my experiences, it is a good idea to start with banks that have something to do with industrial companies. For example, Volkswagen bank would be a good starting point. They offer much more flexible conditions than other traditional institutes.

In addition, they usually offer long term contracts like 20 years debts. However, you can end your contract at any time in case you like to pay the rest at once.

What would be my last tips for you?

Think and think again before you take any decision. In addition, you should read up on the terms and conditions at least twice before you sign anything. Finally, ask all you know and check the online forums to make sure that your lender is legit and serious.

Which way should you go now?

As you can see, many people do like to go this route. However, there are always some pros and cons to each financial aid possibility. Just look to see what your best option is. Some people find that they can not afford the extra money in the long run and still pay the high amount. It all has to be your decision.

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Refinancing Auto Loan – Does it Really Make Sense?

When you look at refinancing auto loan, it does not look like a bad or an unusual thing. There are over a thousand people who prefer to do this each year. Why is it so great? Yet, why are some people shocked at some of the things that they find out about refinancing auto loan? Well, just as there are pros to everything, there are some cons as well. So, keep on reading to discover the whole truth.

What should be your #1 point to think of?

In case you plan to adopt this funding option, do not forget that you will be in debt for a longer time period. Nevertheless, this fact should not prevent you from thinking about refinancing auto loan. But you should keep an eye on the most significant issue in this topic, which is the auto refinancing rate. Think about it quite well and do your homework to ask many people as this is the first step to lower your monthly payments.

Nothing is perfect! So, what is the downside here?

It is true that you have to pay less money per month. While this increases the amount of money you own per month, you end up owing for a lot longer period of time. Indeed, you still have to pay back the full amount, but just in a longer amount of time. People sometimes do not understand that when they sign up to do this.

So, does it sound really interesting to do so?

Apart from the refunding rates that might be lower than the initial rate, the first pro of this option is the reduction achieved on how much you pay each month. This is nice for some as they are stitching their pennies just to make the next payment; especially those who need car refinance loans for bad credit. This gives you a longer amount of time to pay the money back.

Nevertheless, avoid this mistake that almost everybody does!

It is really amazing to see a statistic says that almost 50% of the people are doing the same mistake before starting with a new funding option. As a matter of fact, you have to break your contract with the already existing one. In order to do this, they normally charge you a fee. This fee can get pretty up there. So, be careful and calculate it well.

Well, what would be the optimal way for you now?

Does not this funding option hurt people? Yes and no. It hurts them in a sense that they have to have the money to close on their existing funding contract. However, some of them find that after they pay that initial fee, they are not paying quite as much month to month. Sometimes, you have to count your losses. You do the math in order to decide, if refinancing auto loan is the right decision for you. For many people though, this is their only option. This might be an option for you too as the economy gets worse.

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Car Financing and Refinancing Auto Loans – Bringing Vehicle Ownership in the Forefront

The Bureau of Transport Statistics in 2008 reported that Americans owned 137,079,843 passenger vehicles or a little less than one car for every two persons. As the statistics continue to increase, it’s now undeniable that car financing and refinancing auto loans will be vital factors to help customers acquire the cars of their dreams. Both means empower consumers on their vehicle purchase by providing flexible and affordable resources to buy cars.

What’s the difference?

Auto financing is an outright loan taken for the purpose of buying a vehicle. The loan could either be from taking a personal loan, a direct car loan, or through getting a second mortgage on your property. A refinancing auto loan is essentially closing out one car loan to get another in order to pay lower monthly rates.

Which loan should a consumer apply for?

It depends on the consumer’s needs. For instance, if you have yet to buy a vehicle, you can apply for auto financing. Refinancing as the term suggests is option only available to those with an existing car loan already.

How practical is a car loan?

Many people would argue that since it is a loan, consumers who apply for it may end up getting burdened with payments. Unlike buying clothes or shoes for example, a vehicle will cost thousands of dollars in outright payment if you do not secure financing arrangements. When this happens, you place all your money in one investment and may not have enough anymore for other expenses. With financing means available, you can still have money left for emergency or other household needs. Such loan can also help you establish credit history you would later need if you decide to invest in a residential or business property.

Is a refinancing option practical?

It’s sensible because this allows clients financial flexibility. Consider this: if you’re paying $250 each month for a car and you suddenly have the option to pay only half, wouldn’t this free you from more worries? The money you save can be used for buying other necessities or you can even save it for rainy days.

What are the prerequisites for both deals?

Auto financing usually requires a client to submit pertinent documents such as identification papers, credit rating report, and proof of income. The customer submits all these along with an accomplished application form which will be examined by the approving company. If all goes well, then you can have the car you want.

In refinancing auto loan, the prerequisites may be slightly different. The company approving the loan may need to determine the current market value of the vehicle before they require relevant documents. For instance, if the balance owed on the loan is higher than the vehicle’s current value, the lending firm has the right to disregard the loan application immediately.

Both auto financing and refinancing bind loan applicants into legal financial obligations once the loan is approved. Borrowers are reminded to ensure the payment schedule is regularly complied with and other monetary requirements are settled within the agreed period stated in the contract.

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How Refinancing Auto Loans With Bad Credit Can Make a Difference

Anyone can find themselves in financial hot water quite fast, and when it happens, finding a way to reduce monthly costs is vital. There are a variety of moves to make to ensure this is possible, with refinancing deals a favorite amongst those of us with very bad credit ratings. Even a family car can be a source of respite, and refinancing auto loans with bad credit is a popular option.

There is nothing wrong with renegotiating the terms of a loan, and most people tend to overlook the potential in their cars to save money. But when it comes to managing loan debt, and reducing monthly outgoings, most lenders are happy to agree an auto loan refinance deal with bad credit.

In fact, both sides of the refinancing deal are set to benefit, and so long as the terms are good, a borrower can see their auto loan repayments reduced significantly. This can translate to significant savings that will alleviate the pressure on them every month.

Refinancing Explained

Essentially, refinancing comes down to restructuring the repayment schedule so that the drain on finances is lessened. When it comes to refinancing auto loans with bad credit this can translate to big savings and a major difference to the financial situation. And with the pressure alleviated, further debts can be cleared more quickly.

Basically, a refinancing loan is used to buy out the balance on the existing loan. For example, a loan of $25,000 over 5 years may have been used to buy a family car 2 years ago, leaving a balance of $15,000. By managing loan debt, the balance is bought out by a new refinancing loan also over 5 years, but this means that the monthly payments are lowered – from $450 to $275.

What this means is the auto loan is replaced by a more affordable loan deal. The pressure is therefore lifted, and an extra $175 is freed up each month to spend on other debts or expenses.

Long Term Benefits

The immediate benefit of refinancing auto loans with bad credit are the reduced monthly payments, and the availability of extra cash to use for other important bills and expenses. But there are also long-term benefits to be enjoyed, if the borrower continues to make the right financial decisions.

This relates directly to the credit score and subsequent effect it has on future loan applications. For example, when the initial loan is repaid in full, that goes into the credit record of the borrower as a cleared loan. This means the credit score is raised, which means their credit rating is improved. So, by managing loan debts through refinancing, a financial status is improved.

This in turn means a lower interest rate will be applied to loans taken out by the borrower. It not only relates to auto loans, of course, but any type of loan, and ensures repayments are more affordable and loan limits are raised.

Finding Lenders Online

Often, the best place to find a lender is online, with the Internet providing a direct route to some of the lowest interest rates and best terms available. Remember that, when refinancing auto loans with bad credit, the key to the whole plan is that repayments are slashed. This means the lowest rates need to be found.

However, online lenders – especially subprime lenders – need to be accounted for, so be sure to check out their reputation before managing loan debts with their refinancing deals. But if the rates of interest are low enough to ensure good savings, and the auto loan refinancing agreement from the chosen lender is satisfactory, then the benefits are yours to enjoy.

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Refinancing Auto Loans – Refinance With Lower APR And Payments

There are definite benefits to refinancing auto loans, but there are also some aspects that you should beware of before you decide to refinance your car or truck. While this is a sure way that many take to save money in the form of lower interest rates (APR) and monthly car payments there are many more that either don’t know about refinancing or do not consider the savings benefit of doing so.

What is car refinancing? It is similar to refinancing a mortgage but a less complex process that is faster. Essentially your current auto loan is paid off from the original lending institution at a better rate by a new lender. It is this reduction in the rate of interest that will lower your month car payments and that may also allow you to pay off your auto loan faster. In some cases the reduction in your auto loan interest rate and payments can be dramatic. This alone is worth investigating your options, which can be done quickly online. Today free, no obligation auto loan refinance quotes can be found, secured and compared with a little amount of time and the click of a mouse.

Refinancing auto loans for people with a bad credit history is also available and a great choice. Out of all the people who decide to refinance, you stand to realize the lowest interest rate reductions and auto loan payments. If a year or so ago you acquired a sub-prime car loan with a high interest rate because of a poor credit history but have gained stability in employment and this is reflected by on time car payments, you may now be qualified for a substantially lower interest rate. It makes the most sense for you to make certain that you are not paying more than you have to by refinancing your auto loan or at least researching it.

When you choose to refinance your current auto loan you can keep the same or reduced terms (length of time) as your current loan, but at a lower interest rate, this will allow you to pay off your car faster. But you can also choose to have lower payments by extending the terms that remain on your current loan. Doing this can result in you paying more interest over the life of the car loan, even with a lowered interest rate.

Keep this in mind, it is most beneficial for you to refinance an auto loan sooner than later. You will see more savings when you refinance your loan quickly, within one to two years, since most of the interest of an auto loan is ‘charged’ in the beginning portion of the loan. You will save more money, this could allow you to pay off your car loan ahead of schedule.

You know if your current auto loan rate and payments are excessive, now you can find relief. Comparison is the key here. Your local bank or credit union if you are a member, are great places to start. Most have a presence on line where you will find them and other reputable lenders willing to refinance your loan at their current, lower rates and terms. Compare at least three lenders quotes online to find the lowest APR for refinancing auto loans and the best terms, especially for people with bad credit.

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The Benefits Of Getting A Personal Loan

A personal loan is usually not secured. It means collateral does not need to be provided by you when you borrow. The loan is offered to you by the lender on the basis of your credit and qualifiers. You can easily get the approval of loan, if you have a good credit. A lower interest rate can also be offered to you. Visit a financial institution or search online to get a personal loan.

Here is a list of some of the benefits of such a loan.

Lower interest rate – If you have good credit, then personal loans with lower interest rates can be availed by you. Around 15% APR on a credit card balance is paid by the people with lower credit card balance. But if you have good credit, you have to pay only 6% APR. While making a big purchase, it is considered as a big difference.
Use for many purchases – Your cash can be used by you for making any purchase. A loan of this type can be used even for purchasing a vehicle, starting a business or renovating your house. Restrictions may be placed by other types of loans on the usage of fund. But the conditions of using a personal loan are flexible and can be used for any purchase.
Consolidate debt – High interest debt can be consolidated by using a personal loan. Several smaller debts with high interest such as credit cards and student loans can be paid off by using a larger loan. Money on interest can be saved if you consolidate your debt by using this loan. Your debt repayment plan can be managed in a better way by combing several loans in one place.
Smooth your cash flow – Your cash flow can be smoothened by using a personal loan. A personal line of credit can be got by you, by using your personal loans. You have to pay a low interest rate in this alternate way of use. An emergency fund doesn’t need to be raised for future. The borrowed amount can be repaid by accessing your line of credit.
Boost your credit score – Your credit score is counted depending on your different types of accounts. One type of credit is represented by credit cards. In this case, you can use your credit score to handle your loans. Your score can be boosted slightly by adding instalment loans in your credit report.
Thus, save a huge amount on all your purchases by using a personal loan. Always remember to compare different loans before borrowing any sum.

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Five Reasons for Refusal of a Personal Loan

Don’t you wish personal finance were a mandatory course in college? Unfortunately, too many of us learn by mistake. When you need a personal loan and are rejected, you might be baffled as to what went wrong- and how to fix it. Here are some clues.


No credit is a situation where you have never used credit and therefore have no credit history for the bank to review. They have no way of making an educated decision on whether or not you will pay back a personal loan based on your credit history. No credit is worse than bad credit. Qualifying for and making regular payments on these types of introductory forms of credit can overcome a “no credit” score:

· Student Loans

· Secured credit card (includes a down payment amount)

· Being added to a parent’s or spouses good credit: card, car loan, etc.


Low credit takes on several forms. If you’re using more than 30% of your allowable debt, it can negatively impact your score. Too many inquiries from shopping around for loans will also hit you hard. Lapses in payment, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.

Other things that lenders may look at are whether or not you have sizeable assets should you default on the loan. They also check to see if your debts are diversified or if you are only carrying one type of debt.


Proof of income is generally required when applying for a personal loan. If you are unemployed or underemployed, it can work against you in the loan approval process. Lenders may also require a work history to see how long you have been with your current employer, and to determine if you typically have job stability. Frequent job loss or change will tell a creditor that your payments may not be reliable.


Believe it or not, your application can be rejected due to your proposed purpose for the loan. Financial institutions have the right to set up the parameters surrounding their disbursements and can accept or reject your application based on what you want to use the money for.


If you’ve defaulted on debt before, your name may be put on a list of whom not to loan to,’ also known as a “Blacklist.” This will follow you around for a long time and is difficult to erase. If you do resolve the debt issues, get documents to prove the resolution.


If you need a loan now, but are concerned that you might not qualify for a personal line of credit, you can qualify for a No Credit Check Loan. You could be on your way to a better financial future in no time!

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A Latin Impact on the Finance Industry

Financial Institutions are a fantastic business model to learn from when considering ever changing market conditions. Their traditional target markets are stable, but, the needs of an emerging market, the Latino market is extremely underserved. It is certainly not for lack of money. Many Latinos have zero debt and healthy saving habits. The question arises, are financial institutions doing enough to serve this population? Are they adapting to the Latino needs? The answer is complicated.

There are two types of Latinos in the USA. One is the immigrant seeking a better life and wanting the American dream, whether they came through the proper channels or not it is irrelevant. The second, are the Latinos that are born here. These are two very different groups of people with different needs and goals. Most immigrants bring their culture, traditions, and customs with them to the US. Those born here develop a blended culture that is both Latino and American.

Financial Institutions are taking notice and making strides to accommodate this very economically influential population. The main reason is that there is a lot of investment in education and developing trust. An untold detail is that in Latino countries, people do not trust banks and financial institution because of corruption. Everything is paid in cash and there are no debt or traditional credit scores. This means that the Latino community have cash, probably stored under their mattress or in a shoe box. This is very dangerous considering that a house fire could burn an entire life savings. Another scenario is they could become a target for robbery. This is a foreign concept for Americans. What is happening is a huge learning curve, educating them on the process of building credit, saving their money in a financial institution, getting loans (mortgage, car, etc.), and most important having trust in the financial institutions.

The younger generations that are born here learn from their parents and surroundings. There is still a disconnect from the importance of financial products, building credit, and how that process works. Many of these young people are just translating for their parents, explaining financial products, and become an intermediary for conducting business. You will notice an increase in bilingual support at many financial institutions for this reason. There is still a lot of work to do in this regard, and this process will take time.

However, more and more financial institutions are offering products specific to Latinos. Information is becoming available in Spanish and more financial institutions are hiring bilingual and multi-lingual speakers. It will be interesting to see how we as a country adapt to this important demographic. It is truly an untapped market that has an important function in our economy for growth and stability.

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6 Home Loans Tips Before Applying

Applying for home loans could be dreadful, particularly on the off chance that you are a first-time home purchaser. There’s a considerable measure of printed material and indulgent preparing included. Yet at the same time, it is justified regardless of your exertion. This far reaching contract aide will walk you through the way toward securing financing for your home and make you feel that applying for a home loan is not that horrible all things considered.

1. Know about them Lender or Broker?

There are two approaches to apply for a home loan. To start with, you can manage a loan specialist or home loan organization straightforwardly. Second, you can procure a home loan representative who will help you look over an assortment of moneylenders. Most homebuyers think that its less demanding and less expensive to choose a loan specialist, without assistance from the outsider. In addition, with a specific end goal to locate an equipped and solid agent, you should do a really decent research and get references. That is the reason a great many people like to keep it straightforward and manage a bank themself. In a few circumstances, be that as it may, merchants can really work to support you. For instance, if your record of loan repayment is not all that good, an accomplished dealer might be exceptionally useful in shopping and arranging for the most ideal arrangement.

2. Know the True Rates

The publicized rate frequently snatches borrowers’ consideration yet it is really not the one that borrowers ought to depend on. The AAPR or “the genuine rate” is a much better guide, as it checks every one of the expenses and charges that will happen over the term of your loan. In spite of the fact that the AAPR is a stage up from the publicized rate, it is still only a quantitative device. Once you’ve chosen a couple loans in view of their AAPRs, you will at present need to investigate their different elements. Some worldwide think-tanks, for example, CANNEX and AIMS Home Loans can outfit you with some canny data about mortage loans and help you limit down your choices quicker.

3. Know about loans details & terms

When you search for a home loan and read through various home loan terms and conditions, you will go over money related wording that you most likely won’t discover somewhere else. It is critical for you to comprehend those home loan terms with the goal that you can secure the most ideal arrangement. Truth be told, numerous money related foundations and land firms offer free homebuying workshops, which can help you comprehend what individuals are discussing in land business. Here are some fundamental home loan terms that you ought to know:

APR – Yearly rate, expected to mirror the yearly cost of acquiring. It is otherwise called the “promoted rate” or “feature rate”, that ought to make it less demanding for borrowers to think about moneylenders and loan alternatives.

Closing Costs – Shutting costs incorporate “non-repeating shutting costs” and “prepaid things.” Non-repeating shutting expenses are any things to be paid only once as a consequence of purchasing the property or acquiring a loan. Prepaid things are things which repeat after some time, for example, property charges and mortgage holders protection. Normally a moneylender should gauge both the measure of non-repeating shutting costs and prepaid things, then issue them to the borrower inside three days of accepting a home loan application.

Collateral – An insurance is the thing that you use to secure a loan or ensure reimbursement of a loan. In a home loan, the property is the security. The borrower will lose their property if the loan is not reimbursed by assentions of the home loan.

4. Check Your Credit

When you apply for a home loan, your whole record as a consumer will be investigated by your forthcoming moneylender. FICO ratings more than 620 have a decent risk of getting affirmed for a home loan with a decent financing cost. On the off chance that your score is beneath 600, in any case, your application might be denied or you may get affirmed at a much higher loan fee. Whether you have a decent or terrible financial assessment, what you ought to do is check your credit report before your bank does. You can get your credit report from Equifax, Experian and Trans Union. In the event that there are any mistakes, attempt to contact these three organizations and clear them up. This procedure can take a great deal of time, so it is something you ought to do a while before apply for a home loan. Paying down your budgetary commitments, for example, Visa obligation and auto loans, before applying for a home loan is additionally an extraordinary thought.

5. Don’t afraid from your bad credit score

Regardless of the possibility that you have an awful financial record, you ought to in any case glance around for the best arrangement. Don’t simply expect your lone choice is a high-taken a toll loan. On the off chance that your credit issues were created by unavoidable circumstances, for example, ailment or a brief loss of pay, disclose your circumstance to the loan specialist or intermediary. Ask a few banks what you need to do keeping in mind the end goal to get the least conceivable cost.

6. Verify and clarify all the things

A pre-endorsement letter is extremely useful, yet not as awaiting as you may think. When you locate a home you’d like to purchase, and your offer has been endorsed, you will need to do a reversal to the moneylender and submit archives that confirm your monetary data to get a loan. Your benefits will be assessed. The loan specialist will investigate your work history. You ought to have no less than two years of business history in the same profession. On the off chance that you are new to the work power, advanced education may help you get endorsed. In the event that you don’t have a sufficient record as a consumer, you may utilize normal regularly scheduled installments, for example, lease, telephone, or satellite TV to demonstrate the loan specialist that you are a reliable shopper.

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The Role of Islamic Finance in Economic Stability and Social Justice

One of the most distinguishing times for the U.S. Islamic home financing industry began in February 2007. The Federal Home Loan Mortgage Corporation (Freddie Mac) sent out a press release announcing that it would no longer buy the most risky subprime mortgages and mortgage backed securities. Two months after the announcement, a leading subprime mortgage lender filed for Chapter 11 bankruptcy protection. Three months after that bankruptcy filing, nationwide financing entities warned of “difficult conditions” ahead. Manifestations of such difficult conditions appeared on the horizon of the financial market when once well-established mortgage companies suddenly began to file for Chapter 11. Similar circumstances reached the U.K. as the Bank of England cleared an authorization to provide liquidity support to Northern Rock, the country’s fifth largest mortgage lender. Five months later, Treasury of the United Kingdom became the owner of Northern Rock.

Up until that point, the gravity of these “difficult conditions” was not fully understood by most of the populace. Late in 2008, the Federal Reserve Bank of New York was authorized to lend $85 billion to the AIG. This was the beginning of the most serious recession in the United States since the Great Depression. What followed was a chain reaction that led to an unprecedented global financial crisis, as the world suffered from rising unemployment, rampant foreclosures, and severe skepticism of financial instruments.

This led to a renewed spotlight on an unfamiliar market segment that appeared comparatively more stable and, more importantly, far more ethical: the Islamic financing sector. From the financial centers in Malaysia to the Middle East, spanning across over seventy countries, Islamic finance in the U.S. increased from $5 billion in the 1980s to $1 trillion in 2010. This phenomenal growth caught the attention of global investors who were seeking to safeguard their investments through more ethical and reliable financial instruments. When financial sector workers realized that these Shariah-compliant instruments avoided many of the worst effects of the global financial crisis, it became an attractive investment vehicle to support a more diverse portfolio. The Shariah-compliant financial sector has avoided investment in predatory lending businesses and overly leveraged financial instruments due to the strict ethical nature of the Shariah governance system. News and media outlets started to cover this ancient yet unfamiliar industry in hopes of learning from the mistakes of the conventional banking sector.

The concept of the modern Islamic financial services industry is rooted in the principles of Islamic legal jurisprudence that deals with financial transactions, a branch of Islamic jurisprudence called Fiqh Al Muamalat. Fiqh Al Muamalat is a framework under Islamic Law that charts the conduct of Muslims in commercial or economic endeavors. Islamic finance products and rulings are based on specific injunctions from the Quran that prohibit certain features of financial transaction models and related economic activities.

The Quran forbids interest, also called usury or riba. The underlying reasoning is that Islam considers lending to be a charitable act to help another member of the society in his/her time of need – therefore, profiting from someone’s hardship is strictly forbidden. In the conventional banking system, when interest is charged on a loan, the risk of that transaction is transferred to the borrower while the lender gains profit from the interest-based transaction. There is no consideration for the hardships endured by the borrower in the event they undergo any loss from the transaction.

By its nature, Shariah law prohibits unethical financial practices. It also promotes wealth distribution among all people to reduce poverty and inequity. This is manifested in the prohibitions of activities such as excessive speculation, gambling, and investing in products that are harmful for society as deemed by Islamic law (alcohol, pornography, etc). The structure of Islamic financial products and services, especially its prohibition in speculative transactions, has helped the industry escape most of the adverse effects of the global financial crisis. The governance model of Islamic financial institutions has been praised as an ethical alternative by institutions such as the International Monetary Fund and the World Bank. Economic experts have suggested that Islamic financial principles can be leveraged to promote financial inclusion that uplift the quality of life in developing nations. Islamic financial principles can also contribute to financial stability and economic development around the world.

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