hey there every person you are viewing Saheb
If you like our video clips then please, Academy
subscribe to our network and also hit the bell icon for the normal updates
and likewise follow us on instagram saheb academy academy now let” s go to the video
essential yet one of the most essential thing is the.
principles of islamic finance yeah this is really essential see right here.
principles of islamic finance in islam rate of interest is entirely.
prohibited yeah you can” t usage money to make cash paying or. billing rate of interest from people is completely prohibited in islam all right.
If any kind of purchase involves rate of interest then that” s not permitted in islamic. banks appropriate and after that purchasing companies. included in forbidden tasks yes islamic economic organizations you recognize.
they can” t be entailed in any organizations which handles prohibited activities.
forbidden tasks such as you know gaming, prostitution, pornography and afterwards what do you say.
alcohol the organizations which handle alcohol, pork yeah all these are.
banned tasks in islam songs industry.
yeah all these points fine so if any organizations are associated with these.
tasks they can” t obtain credit rating or anything from. islamic monetary organization they can” t enter agreement with. islamic financial institutions great and then supposition is additionally not enabled all right you can” t deal. in what you say futures market or alternative market right and after that. If any type of agreement where you recognize the terms of the threat, unpredictability and agreement. are not clear yeah not clearly stated and. they depend on some future event then that” s likewise not enabled all right
. since there is excessive threat it is equal to wagering yeah both of.
these things are like gambling just so that” s a prohibited. task in islam so you can ‘ t handle those kind of purchases.
and those kind of agreements you understand such as complex acquired instruments.
and short marketing are entirely restricted penalty and the.
primary principle another concept is the danger must be shared yeah the danger of.
any contract between the lending institution and the customer need to be shared.
fine that” s the main principle of islamic money fine and afterwards the last.
is wealth has to be created from reputable trade and asset-based.
financial investment either it should be asset-backed or asset-based.
all right for each every deal there must be an underlying possession.
yeah you can” t just use cash to earn money that ‘ s just passion. all right you can ‘ t do that so that ‘ s the last concept of islamic finance. fine so i wish you have recalled whatever we.
If you want to go deeper after that, did in the initial video yeah.
Please go in the first video and see it again all.
fine after that i” ll placed the link in the description below now coming back to.
this video in this video what we” re mosting likely to do is. in this video clip we are going to see various types of agreements of islamic. finance yep various kinds of products or the solutions that are used by.
islamic banks fine so what are the allowed means to do.
you know banking that” s what we are visiting. over below currently as you can see the concepts of islamic money there are.
a lot of restrictions so tell us what is permitted.
yep this is it right these are the 5 major contracts that are allowed.
in islam penalty so currently allow” s discuss this one by one madaraba musharraka sukuk.
yeah let” s review this one by one all right now here we have the first agreement of.
islamic finance see right here Mudaraba Mudaraba is same like partnership all right.
partnership or joint endeavor here what will occur is below there will.
be two individual included fine maximum 2 individual only yeah it can”
t be. even more than two so one celebration will bring the funding.
yeah one celebration will bring the cash and the various other celebration will bring the.
ability yeah it” s a collaboration purchase where. one event provides the cash hundred percent of funding. and the other supplies monitoring proficiency yeah other event will bring.
the skill currently this party that brings the resources.
will certainly be called as cash distributor of financer in english.
however in arabic it is called as he is called as rab-al-maal.
okay rab-al-maal and after that the celebration which brings the ability.
the administration competence the labor company that will certainly do all the work.
yep this person the functioning partner will be called as Mudarib alright so currently he or she who is the cash.
supplier the financer he will just contribute funding he will.
not join management alright he” ll be the resting companion. functioning companion resting companion is that clear right. so now below what will certainly happen this service either this
organization will certainly make. earnings if it makes profit after that it will be dispersed in the. pre-decided ratio all right the proportion the profit sharing ratio will be chosen in. beforehand itself fine but if in situation god forbid there is a loss then entirely.
the loss will be borne by the financer alright the who the rab-al-maal.
the money supplier the person that has actually generated the capital entire.
loss will certainly be birthed by the the resources carrier.
Since it is thought about that you recognize, all right why is it like that see below.
this person has actually done his 100 person yeah he has.
participated and he has actually functioned truly hard and still he couldn” t make profit. he couldn ‘ t make revenue in this service then it is believed that it is suggested.
that you understand he has actually done 100% of his job so he can” t. be punished yes he can” t be because he doesn ‘ t have the money that ‘ s why he has. only brought his ability yeah yeah he doesn ‘ t have cash and or.
anything to ensure that” s why he can ‘ t bear the loss only the financing company.
will birth the loss it ‘ s argued like that in islam.
all right is that clear so this is what mudaraba is. just 2 individuals one will bring the funding other will certainly bring the ability. If there is an earnings it will certainly it will be divided in the it will certainly be, yep. dispersed in the pre-decided ratio yeah and if there is a loss the loss. will completely be birthed by the resources supplier and there is an. exception over below if this individual is entailed in some fraud or anything. Since of his oversight or his, yeah if the loss is.
he is guilty then the loss will certainly be borne by this individual all right.
in instance blunder is there by this individual clear otherwise generally the whole loss.
will be borne by the funding carrier this is what Mudaraba agreement is simple.
collaboration okay currently let” s see another one currently. If you like yeah otherwise simply, you can pause the video clip and take this note.
proceed on now right here we have the 2nd kind of.
agreement see below Musharaka currently Musharaka is additionally exact same like.
mudaraba just yet there are big differences so see right here.
it” s a joint venture or collaboration framework yeah same like Mudaraba.
just where a minimum of two parties or more yeah that” s the important things here the. events can be extra additionally in mudaraba we saw there will certainly be just. 2 parties right one rab-al-maal the finance company and.
one the labor carrier Mudarib however below it” s
not. like that right here the parties can be more yeah multiple parties can be there.
yep so see right here several celebrations can be there they will certainly bring their resources as.
well as abilities bring resources and abilities and everybody.
are working companions yeah or they want they can be resting.
companions yet everybody can be what they can be functioning companion they.
can take part in the management of business.
all right and these individual the partners they are called as.
musharrek in this agreement okay musharik everybody are musharik.
musharik musharik musharik great everybody can join.
administration now the primary distinction right here is if there is a.
profit after that the profit will certainly be distributed in the.
pre-decided proportion great whatever they decide in the beginning itself.
After that if there is a loss after that the loss has to be purely it has to be.
dispersed in the funding ratio okay whatever funding.
they generated that ratio just the loss will be.
shared amongst them construct among them all right so this is what Musharaka is alright.
the major distinction is the loss distinction in the mudaruba.
in the mudrabah we saw the loss is totally birthed by the money carrier.
yeah however right here the finance is given by everyone.
What will certainly happen right here is that the loss will be.
dispersed in the resources proportion of the mushariks the partners.
clear and another distinction was that everyone are functioning partner over right here.
every person can take part in monitoring yet below.
only the the ability company the supervisor he” s the manager right’he ‘
s only. participating right here in mudaraba in mudaraba I imply yeah.In Musharaka
below everyone can take part in the.
monitoring of the company clear so this is what Musharaka is basic extremely basic.
now let” s proceed to the third contract you recognized ideal Musharaka nothing.
it” s easy and afterwards we have actually sukuk currently what are.
sukuk? sukuk are the islamic bonds you know the bonds that are structured in.
such a method regarding produce go back to capitalists.
without infringing islamic regulation that forbids interest now normally.
traditionally what takes place yeah regular bonds how are they? when the.
business problems bond the conventional bonds after that.
If you have purchased the, they pay rate of interest on them to the bond holders right.
bonds that implies you are obtaining passion from them.
If you have actually bought any type of bonds then you will certainly be, yeah you as an investor.
getting rate of interest from the firm which has actually provided the.
bonds isn” t it of course that ‘ s what traditionally normally occurs yet here. in islam interest is totally forbidden. interest is not enabled so if interest is not permitted then how.
can bonds work that” s what you need to consider all.
So right here the bonds are structured in such a means.
to generate go back to financiers without infringing islamic law that prohibits.
interest interest can” t be there in these bonds in this these bonds. passion are not there however investors are getting returns. how does that job allow ‘ s comprehend this see below sukuk goals at.
profit sharing by using the financier ownership in organization and properties currently.
let” s take an instance and comprehend this
see’here. let ‘ s say i have a business right and let ‘ s state this business provided. bonds yes it is need to so prepare so automobile issued great so now let
‘ s say you. subscribe you acquire those to cook now you will certainly be paying money
right so i” m. getting dollars i” m getting money so now what i ‘ m mosting likely to do as a company. I will select and supervisor sukuk supervisor. So that sukuk supervisor will certainly be you understand in handling.
everything relevant to these bonds fine so now what the company will certainly do is.
company will certainly purchase an asset generally why do you elevate.
debt finance mostly to purchase possession right so what you” re mosting likely to do is you. are mosting likely to acquire an asset the business is going to acquire a property.
So now what the business will do is company will certainly provide you.
possession in those assets since which cash is this.
Because due to the fact that have have actually to the bonds, this money is of bond holders you are a bondholder right why you are a.
bondholder.
the sukuk right so you will certainly get possession of the.
asset which has actually been bought from your cash yeah the money circulation which the.
firm will get from you yeah after releasing the bonds from that.
they will acquire the possession and the possession of that property will be.
When you end up being proprietor of, offered to you to the bondholders great so.
something yes when you come to be proprietor of something.
You are entitled to the benefits and risk coming out of that.
asset right so whatever earnings that will be generated from that property.
you will get a component of that to make sure that” s exactly how you will certainly receive.
earnings from these bonds alright you will certainly not obtain passion okay interest is.
completely prohibited in islam you know that yeah yet below in sukuk.
there is a profit sharing objective by supplying the investor possession in.
property right when you obtain the ownership you are.
qualified to the advantages in addition to the threat of that asset.
so whatever money has actually been created because of that asset.
yeah a part of that will be sent out to you yeah it will be offered to you it will certainly be.
dispersed to you ideal participation in revenue that” s just how you will. join the earnings of that asset yeah because you own.
it right you as a sukuk owner fine so this.
is exactly how sukuk works so unlike conventional bonds sukuk are.
connected to a hidden tangible possession yeah an asset.
will be there you bear in mind the what the last principle.
of islamic money wide range should be produced from legit.
profession and asset based financial investment fine this is what.
it is yeah there is a hidden property over below you are not.
simply obtaining you recognize passion no you are not obtaining.
rate of interest over here you are obtaining profit you are obtaining.
earnings over below from the asset based investment alright.
is that clear simple right so this is what sukuk is.
great easy all right and after that the fourth kind of contract we have.
is ajara ijara is comparable to a lease contract fine.
so when we assume about leases what involves our mind we believe concerning the principal.
amount plus rate of interest of course that” s exactly how
leases. works isn” t it the lessee will certainly pay to the minimal.
for using the possession which payment will consist of.
what major quantity plus interest however now below in islam.
passion is totally forbidden so how these agreements are mosting likely to function.
yeah how is it going to function so see here that” s what we have to understand. an ijara purchase is the islamic equivalent of a lease agreement.
where one celebration lessor allows another event lessee.
to use their possession against the payment of a rental cost.
currently below because rate of interest is restricted so a fixed rental charge will certainly be.
agreed upon between the parties the lower and.
lessee and that rental fee will be paid which doesn” t consist of interest it is
a. predetermined charge all right it” s not like worsening passion and all.
great yes so currently let” s comprehend that in very much information see below.
let” s say you need an automobile and you wear ‘ t have money to purchase it straight-out all right.’right away you don ‘ t have cash to purchase it so what are you going to. do is you are going
to method islamic bank. alright and you will obtain an agreement with them of a. ijara yeah you will certainly get an ijara contract currently what is this ijara contract what. will certainly occur is see right here as i said you need a vehicle so bank will. purchase the auto and make the settlement in entire in one go. So they will certainly make the whole repayment to the vendor. and bank will certainly advise the vendor this honda showroom this supervisor. to deliver it to you alright so the vehicle will certainly be supplied to you.
okay you will certainly have the setting of the cars and truck yeah and you will need to make an.
first deposit to the financial institution fine initial some cash you need to.
pay to the bank for the guarantee or something yes.
yet the ownership of that automobile will stay with the financial institution.
all right the possession will certainly remain with the bank so whatever benefits and danger.
exist of that possession of that cars and truck will remain with the.
bank itself so if there is any significant upkeep price.
yes there” s any maintenance after that the bank will have to build the upkeep.
price and every little thing yeah but if there” s a minor upkeep. or something after that you will need to construct it.
yourself however currently exactly how you are going to pay to the financial institution.
you are mosting likely to pay in kind of services all right the rentals will be concurred.
in the beginning itself okay established rentals fine.
so you will certainly pay the services and at the end of the lease duration.
yeah you will certainly also make a decision the least duration likewise with the bank at the.
starting itself so at the end of the lease duration what.
will take place goes to completion of the lease period the bank.
will provide you choice do you intend to buy the possession yeah buy.
the vehicle simply by making some added added.
payment yeah a brand-new arrangement will be made.
or do you wish to return the vehicle back to the financial institution yeah.
This supervisor will supply the auto to you he will provide the placement to you. The ownership will certainly continue to be with the financial institution and bank will.
because the threat and reward are with the bank.
due to the fact that they have the possession right so yes and you will certainly be paying regular in.
leasings to the financial institution and at the end you will certainly be given the option.
either to acquire or return the property back clear this is what a lease agreement is.
easy lease agreement yes if you desire you can stop the video and.
take this down right alright so currently let” s relocate on now here we have.
the last the last contract of islamic financing.
that you” re visiting in this video Murabaha the 5th agreement.
Far we have actually covered four agreements mudaraba musharaka.
sukuk and ijara so now what is this Murabaha.
see Murabaha is nothing but simply a credit score sale all right credit history sale contract that” s.
all Murabaha is.See the significance over right here a.
Murabaha purchase is a credit sale.
or an installation credit sale and is mostly used for the purchase of goods.
for immediate distribution on deferred payment basis.
If the goods are of hundred, currently you already understand what is installment credit score sale.
dollars you will pay 20 20 20 in installations now what is.
deferred payment basis? credit implies what you are.
postponing the repayment at a later date alright you will certainly pay at a.
later date that” s what postponed repayment basis is simple.
and now let” s comprehend exactly how this muraba will function.
see for example allowed” s claim you need to buy a possession or some products.
and you put on” t have money to get it straight-out right away you put on” t have. enough money you have some money so currently what are you.
going to do is you have to obtain right into an agreement agreement with the bank.
islamic financial institution obviously right so now what the bank will certainly do is.
financial institution will certainly acquire the possession or the products for you.
and the financial institution will certainly market it to you at a revenue margin.
If the financial institution bought that property for 100.
right so what the financial institution will do bank will certainly include 20.
much more revenue 100 plus 20 a markup and sell it to you for 120 and in the.
beginning only they will certainly be it will certainly be decided yeah the markup and.
whatever will be different made a decision at the.
starting itself it is not such as the financial institution will certainly conceal any type of terms of agreement from you.
all right they will certainly divulge everything so it will.
not be oppression to you right and after that what you need to do is.
after getting the asset you need to pay in kind of installments.
all right whatever you set yeah in installations or on delayed.
settlement basis you can likewise promise them to pay at a later day.
yeah that can additionally occur indeed straightforward yeah this is what Murabaha.
is yeah you intend to ask it you approach to the bank financial institution will purchase it for.
you and sell it to you with an earnings margin price plus earnings.
you have to pay in form of installations or.
deferred repayment basis clear that” s what muraba. is easy is that very easy so currently what i” m gon na do is i ‘ m gon na include timestamps in. If you want to revise or go back to any of these contracts, the video.
then just most likely to the summary and see the timestamps and go back and.
view these alright fine alright after that see in the next video right that” s it for today.
If any transaction involves passion then that” s not permitted in islamic. Now here what will certainly happen this organization either this
business company make. So that sukuk supervisor will certainly be you recognize in handling.
So they will make the entire settlement to the supplier. The ownership will certainly remain with the financial institution and financial institution will.