hey there every person you are watching Saheb
Academy if you like our videos then please
sign up for our channel and additionally struck the bell icon for the normal updates
and likewise follow us on instagram saheb academy academy now let” s go to the video
crucial yet one of the most important thing is the.
principles of islamic money yeah this is extremely important see here.
principles of islamic financing in islam interest is totally.
forbidden yes you can” t use money to make money paying or. Billing interest from individuals is entirely prohibited in islam all.
If any type of deal involves passion then that” s not allowed in islamic. banks ideal and afterwards investing in companies. included in restricted activities yes islamic banks you recognize.
they can” t be associated with any type of businesses which deals in banned activities.
restricted tasks such as you know gambling, hooking, pornography and afterwards what do you state.
alcohol the organizations which sell alcohol, pork yeah all these are.
restricted activities in islam songs industry.
yeah all these things great so if any kind of businesses are associated with these.
tasks they can” t obtain credit rating or anything from. islamic financial establishment they can” t obtain in agreement with. islamic banks great and then conjecture is likewise not permitted alright you can” t offer. in what you claim futures market or choice market right and after that. If any kind of contract where you recognize the terms of the risk, unpredictability and agreement. are unclear yeah not plainly pointed out and. They depend on some future event then that” s also not enabled all
. due to the fact that there is way too much threat it amounts to wagering yeah both of.
these things are like betting just to ensure that” s a prohibited. activity in islam so you can ‘ t handle those kind of deals.
and those kind of agreements you recognize such as complicated derivative tools.
and short marketing are entirely banned fine and the.
primary concept one even more concept is the risk ought to be shared yeah the danger of.
any agreement between the debtor and the loan provider must be shared.
fine that” s the primary principle of islamic money fine and after that the last.
is riches needs to be generated from genuine trade and asset-based.
financial investment either it should be asset-backed or asset-based.
all right for every single every deal there need to be a hidden property.
yeah you can” t just make use of money to make cash that ‘ s just rate of interest. all right you can ‘ t do that to ensure that ‘ s the last principle of islamic financing. fine so i wish you have actually remembered whatever we.
did in the very first video clip yeah if you intend to go deeper after that.
please enter the first video and watch it once again all right.
all right after that i” ll put the link in the summary below now coming back to.
this video clip in this video what we” re going to do is. in this video clip we are going to see various kinds of agreements of islamic. finance yes different sorts of items or the solutions that are provided by.
islamic banks fine so what are the allowed methods to do.
you recognize banking that” s what we are visiting. over here now as you can see the concepts of islamic finance there are.
Several restrictions so inform us what is permitted.
yep this is it right these are the five significant agreements that are enabled.
in islam penalty so currently let” s discuss this by one madaraba musharraka sukuk.
yeah allow” s review this by one alright now here we have the first agreement of.
islamic finance see here Mudaraba Mudaraba is very same like partnership okay.
collaboration or joint venture right here what will certainly happen is right here there will.
be two person included okay maximum two individual only yeah it can”
t be. greater than two so one celebration will bring the funding.
yeah one party will certainly bring the cash and the various other event will certainly bring the.
ability yeah it” s a partnership transaction where. one party supplies the cash hundred percent of funding. and the other supplies management knowledge yeah various other party will bring.
the ability currently this party that brings the capital.
will certainly be called as cash provider of financer in english.
In arabic it is called as he is called as rab-al-maal.
alright rab-al-maal and after that the event which brings the skill.
the monitoring knowledge the labor carrier who will certainly do all the job.
yep this individual the functioning companion will be called as Mudarib fine so currently this person who is the cash.
vendor the financer he will only add resources he will.
Functioning companion sleeping companion is that clear. Now below what will certainly occur this business either this
business service make.
the loss will certainly be birthed by the financer all right the that the rab-al-maal.
the cash provider the individual who has actually generated the funding entire.
loss will certainly be birthed by the the capital provider.
Due to the fact that it is considered that you know, fine why is it like that see right here.
this person has done his 100 person yep he has.
got involved and he has worked truly hard and still he couldn” t gain earnings. he couldn ‘ t make earnings in this business after that it is believed that it is suggested.
that you understand he has done 100% of his job so he can” t. be penalized yeah he can” t be due to the fact that he doesn ‘ t have the money that ‘ s why he has. only brought his ability yeah yeah he doesn ‘ t have money and or.
anything to ensure that” s why he can ‘ t bear the loss only the finance provider.
will bear the loss it ‘ s argued like that in islam.
Because of his carelessness or his, yes if the loss is.
he is guilty then the loss will be birthed by he or she alright.
in case mistake is there by he or she clear or else normally the entire loss.
will certainly be birthed by the funding provider this is what Mudaraba agreement is easy.
collaboration all right now allow” s see one more one currently. If you like yeah or else simply, you can stop briefly the video clip and take this note.
proceed on currently right here we have the second type of.
contract see here Musharaka now Musharaka is also exact same like.
mudaraba only yet there are huge distinctions so see below.
it” s a joint enterprise or partnership framework yeah exact same like Mudaraba.
only where a minimum of two celebrations or even more yeah that” s the primary point below the. parties can be much more additionally in mudaraba we saw there will be just. two events right one rab-al-maal the money provider and.
one the labor provider Mudarib but right here it” s
not. like that below the celebrations can be a lot more yeah numerous parties can be there.
yeah so see below several events can be there they will bring their funding as.
well as abilities bring funding and skills and everybody.
are functioning partners yeah or they want they can be sleeping.
partners but every person can be what they can be working companion they.
can take part in the monitoring of business.
all right and these individual the partners they are called as.
musharrek in this agreement all right musharik everybody are musharik.
musharik musharik musharik great everybody can join.
administration now the primary difference here is if there is a.
profit after that the profit will certainly be dispersed in the.
pre-decided ratio good whatever they make a decision in the starting itself.
yet then if there is a loss then the loss needs to be purely it needs to be.
distributed in the capital ratio all right whatever capital.
they brought in that ratio only the loss will certainly be.
shared amongst them build among them all right so this is what Musharaka is all right.
the primary distinction is the loss difference in the mudaruba.
in the mudrabah we saw the loss is entirely birthed by the money provider.
yeah yet right here the finance is provided by everybody.
What will happen below is that the loss will certainly be.
dispersed in the resources proportion of the mushariks the companions.
clear and another difference was that everybody are working companion over here.
everybody can join administration however below.
just the the ability service provider the manager he” s the supervisor right’he ‘
s just. participating below in mudaraba in mudaraba I mean yeah.In Musharaka
right here everyone can join the.
monitoring of the company clear so this is what Musharaka is easy extremely basic.
currently let” s relocate on to the 3rd agreement you understood right Musharaka absolutely nothing.
it” s easy and afterwards we have actually sukuk currently what are.
sukuk? sukuk are the islamic bonds you understand the bonds that are structured in.
such a method regarding create go back to financiers.
without infringing islamic law that forbids passion now usually.
conventionally what takes place yeah regular bonds exactly how are they? when the.
firm problems bond the conventional bonds then.
If you have actually bought the, they pay passion on them to the bond owners right.
bonds that indicates you are receiving passion from them.
yeah you as a capitalist if you have purchased any bonds then you will certainly be.
obtaining rate of interest from the business which has issued the.
bonds isn” t it of course that ‘ s what conventionally normally happens but below. in islam rate of interest is completely restricted. interest is not allowed so if rate of interest is not enabled after that just how.
can bonds function that” s what you have to consider all.
right so here the bonds are structured in such a way.
to generate returns to investors without infringing islamic regulation that prohibits.
interest rate of interest can” t exist in these bonds in this these bonds. interest are not there yet capitalists are getting returns. how does that job allow ‘ s understand this see here sukuk focus on.
profit sharing by providing the capitalist possession in company and properties now.
allow” s take an example and comprehend this
see’below. let ‘ s state i have a firm right and allow ‘ s claim this business released. bonds yes it is ought to so cook so automobile provided great so currently allow
‘ s say you. subscribe you buy those to cook now you will be paying cash
right so i” m. obtaining bucks i” m getting money so currently what i ‘ m going to do as a company. I will certainly designate and supervisor sukuk supervisor. right so that sukuk supervisor will be you understand in handling.
everything pertaining to these bonds great so currently what the firm will certainly do is.
firm will certainly acquire an asset usually why do you elevate.
financial debt money mainly to buy property right so what you” re going to do is you. are going to buy an asset the business is mosting likely to purchase a possession.
right so currently what the company will certainly do is firm will offer you.
Due to the fact that which cash is this, possession in those assets.
Shareholder since have have actually to the bonds, this cash is of bond holders you are a bondholder right why you are a.
bondholder.
the sukuk right so you will get possession of the.
possession which has actually been bought from your cash yeah the money flow which the.
company will certainly receive from you yeah after releasing the bonds from that.
they will certainly acquire the asset and the possession of that property will be.
provided to you to the bondholders great so when you end up being proprietor of.
something yes when you end up being owner of something.
You are qualified to the benefits and risk coming out of that.
asset right so whatever revenue that will certainly be generated from that property.
you will obtain a part of that to ensure that” s just how you will certainly get.
revenue from these bonds all right you will certainly not obtain rate of interest alright rate of interest is.
totally forbidden in islam you understand that yeah however below in sukuk.
there is an earnings sharing goal by supplying the financier possession in.
possession right when you obtain the ownership you are.
entitled to the advantages in addition to the risk of that possession.
Whatever money has actually been created since of that asset.
yeah a component of that will certainly be sent out to you yeah it will be provided to you it will be.
dispersed to you right involvement in revenue that” s just how you will. Since you have, get involved in the earnings of that asset yeah.
it right you as a sukuk owner fine so this.
is how sukuk jobs so unlike standard bonds sukuk are.
connected to an underlying concrete asset yeah an asset.
will certainly exist you bear in mind the what the last principle.
of islamic financing riches have to be produced from genuine.
profession and asset based investment okay this is what.
it is yeah there is an underlying possession over below you are not.
simply getting you know rate of interest no you are not getting.
passion over below you are getting profit you are obtaining.
revenue over right here from the possession based financial investment alright.
is that clear easy right so this is what sukuk is.
all ideal straightforward fine and after that the fourth kind of agreement we have.
is ajara ijara is similar to a lease contract alright.
so when we think of leases what involves our mind we consider the principal.
quantity plus passion yes that” s just how
leases. works isn” t it the lessee will certainly make settlement to the lesser.
for utilizing the asset and that repayment will certainly consist of.
what primary amount plus passion yet now here in islam.
passion is completely prohibited so exactly how these contracts are mosting likely to work.
yeah exactly how is it going to work so see below that” s what we need to understand. an ijara deal is the islamic matching of a lease contract.
where one party owner allows an additional party lessee.
to utilize their property versus the payment of a rental cost.
currently here given that rate of interest is restricted so an established rental cost will certainly be.
set between the celebrations the lesser and.
lessee and that rental charge will be paid which doesn” t consist of passion it is
a. predetermined fee fine it” s not like intensifying passion and all.
good yes so now allow” s comprehend that in quite information see right here.
right so they will certainly make the entire payment to the supplier. and bank will certainly advise the vendor this honda display room this manager. to deliver it to you alright so the cars and truck will be delivered to you.
alright you will have the placement of the automobile yeah and you will certainly need to make an.
preliminary down payment to the financial institution fine initial some money you need to.
pay to the bank for the assurance or something yep.
but the possession of that auto will continue to be with the bank.
all right the ownership will remain with the bank so whatever advantages and threat.
exist of that possession of that vehicle will certainly remain with the.
bank itself so if there is any type of significant maintenance expense.
yep there” s any maintenance then the financial institution will have to construct the maintenance.
price and whatever yeah however if there” s a small maintenance. or something after that you will have to construct it.
yourself however now how you are mosting likely to pay to the financial institution.
you are going to pay in type of services fine the services will certainly be agreed.
in the starting itself okay established rentals fine.
so you will pay the leasings and at the end of the lease period.
yeah you will likewise choose the least duration likewise with the bank at the.
starting itself so at the end of the lease duration what.
will occur is at the end of the lease period the bank.
will provide you alternative do you desire to purchase the possession yeah buy.
the vehicle simply by making some added added.
repayment yeah a brand-new arrangement will be made.
or do you intend to return the cars and truck back to the bank yeah.
This supervisor will certainly supply the auto to you he will provide the position to you. The possession will remain with the bank and financial institution will.
because the danger and incentive are with the financial institution.
because they have the ownership right so of course and you will be paying normal in.
leasings to the financial institution and at the end you will be provided the alternative.
either to get or return the asset back clear this is what a lease contract is.
If you desire you can stop briefly the video and, straightforward lease agreement yeah.
take this down appropriate alright so currently allow” s move on currently here we have.
the last the last contract of islamic money.
that you” re visiting in this video clip Murabaha the fifth agreement.
up until now we have actually covered 4 agreements mudaraba musharaka.
sukuk and ijara so currently what is this Murabaha.
see Murabaha is nothing yet just a credit scores sale okay credit report sale agreement that” s.
all Murabaha is.See the definition over here a.
Murabaha deal is a deferred repayment sale.
or an installment credit report sale and is mainly made use of for the acquisition of goods.
for instant shipment on credit basis.
If the items are of hundred, currently you currently recognize what is installment credit history sale.
bucks you will certainly pay 20 20 20 in installations today what is.
deferred repayment basis? credit suggests what you are.
holding off the payment at a later day alright you will certainly pay at a.
later day that” s what deferred payment basis is straightforward.
yet currently allow” s understand how this muraba will function.
see for instance let” s say you require to get an asset or some items.
and you don” t have cash to get it straight-out immediately you wear” t have. enough money you have some cash so now what are you.
going to do is you need to enter into an agreement contract with the bank.
islamic bank clearly right so now what the financial institution will certainly do is.
bank will certainly purchase the possession or the goods for you.
and the bank will offer it to you at an earnings margin.
If the financial institution bought that asset for 100.
right so what the bank will do bank will include 20.
extra profit 100 plus 20 a markup and offer it to you for 120 and in the.
starting only they will be it will certainly be determined yeah the markup and.
every little thing will certainly be different chosen at the.
starting itself it is not like the bank will conceal any kind of regards to contract from you.
okay they will certainly divulge whatever so it will.
not be injustice to you right and then what you have to do is.
after obtaining the property you have to pay in form of installments.
all right whatever you set yeah in installations or on postponed.
settlement basis you can likewise promise them to pay at a later day.
yeah that can also happen indeed easy yeah this is what Murabaha.
is yeah you desire to ask it you approach to the financial institution bank will certainly buy it for.
you and offer it to you with a revenue margin price plus earnings.
you have to pay in type of installments or.
deferred repayment basis clear that” s what muraba. is easy is that easy so now what i” m gon na do is i ‘ m gon na include timestamps in. If you desire to modify or go back to any of these contracts, the video clip.
then just most likely to the description and see the timestamps and return and.
view these alright fine all right after that see in the following video right that” s it for today.
If any transaction includes interest then that” s not enabled in islamic. Now right here what will happen this organization either this
business service will certainly. So that sukuk manager will be you recognize in managing.
So they will make the whole repayment to the supplier. The ownership will certainly remain with the financial institution and financial institution will.