hey there everyone you are enjoying Saheb
Academy if you like our videos then please
subscribe to our channel and also struck the bell symbol for the regular updates
and likewise follow us on instagram saheb academy academy now let” s go to the video clip
essential yet one of the most vital thing is the.
principles of islamic financing yeah this is extremely vital see right here.
principles of islamic financing in islam interest is totally.
forbidden yeah you can” t usage money to generate income paying or. charging rate of interest from individuals is totally prohibited in islam all right.
If any kind of deal entails passion then that” s not allowed in islamic. banks right and then purchasing companies. associated with banned tasks yes islamic financial organizations you recognize.
they can” t be entailed in any type of companies which sells forbidden activities.
forbidden activities such as you recognize gambling, hooking, porn and afterwards what do you claim.
alcohol business which handle alcohol, pork yeah all these are.
restricted activities in islam songs industry.
yeah all these points fine so if any kind of businesses are included in these.
activities they can” t obtain credit rating or anything from. islamic banks they can” t get in agreement with. islamic financial institutions fine and afterwards supposition is likewise not enabled okay you can” t deal. in what you say futures market or option market right and after that. unpredictability and threat if any kind of contract where you recognize the regards to the contract. are not clear yeah not plainly mentioned and. they rely on some future occasion then that” s additionally not permitted all right
. since there is excessive risk it is equal to gambling yeah both of.
these points resemble betting just to make sure that” s a restricted. activity in islam so you can ‘ t handle those kind of transactions.
and those kind of contracts you understand such as complicated derivative instruments.
and short selling are totally restricted fine and the.
major concept another principle is the risk ought to be shared yeah the threat of.
any contract in between the consumer and the lending institution should be shared.
great that” s the major concept of islamic finance fine and after that the last.
is wide range should be produced from legit profession and asset-based.
financial investment either it must be asset-backed or asset-based.
all right for every every purchase there should be an underlying asset.
yeah you can” t just use cash to generate income that ‘ s simply interest. all right you can ‘ t do that to make sure that ‘ s the last concept of islamic financing. great so i wish you have remembered whatever we.
performed in the initial video yeah if you intend to go deeper after that.
Please go in the initial video clip and watch it once again all.
all right after that i” ll put the link in the summary below currently coming back to.
this video clip in this video what we” re mosting likely to do is. in this video we are visiting various kinds of contracts of islamic. financing yep different kinds of items or the services that are supplied by.
islamic financial institutions fine so what are the allowed means to do.
you know banking that” s what we are visiting. over right here now as you can see the principles of islamic money there are.
many limitations so inform us what is allowed.
yeah this is it right these are the five major agreements that are permitted.
in islam fine so now let” s discuss this set by one madaraba musharraka sukuk.
yeah let” s discuss this set by one alright now here we have the initial agreement of.
islamic money see here Mudaraba Mudaraba is exact same like partnership fine.
collaboration or joint venture here what will occur is right here there will.
be two person entailed fine optimum two individual only yeah it can”
t be. even more than 2 so one event will bring the capital.
yeah one party will bring the cash and the various other event will bring the.
ability yeah it” s a partnership transaction where. one event provides the cash hundred percent of funding. and the other supplies management proficiency yeah various other celebration will certainly bring.
the skill now this celebration that brings the funding.
will be called as money distributor of financer in english.
yet in arabic it is called as he is called as rab-al-maal.
fine rab-al-maal and after that the party which brings the ability.
the administration proficiency the labor provider that will do all the work.
yes this person the working companion will certainly be called as Mudarib fine so currently this person that is the cash.
supplier the financer he will only add capital he will.
not join management okay he” ll be the sleeping companion. Working partner sleeping partner is that clear. Currently here what will happen this company either this
business company make. earnings if it makes profit then it will be dispersed in the. pre-decided ratio okay the ratio the earnings sharing proportion will be decided in. beforehand itself okay however if in situation god forbid there is a loss after that entirely.
the loss will be birthed by the financer alright the that the rab-al-maal.
the money supplier the person who has generated the capital entire.
loss will be birthed by the the resources carrier.
Because it is considered that you understand, all right why is it like that see below.
he or she has done his 100 individual yeah he has.
got involved and he has functioned really difficult and still he couldn” t earn profit. he couldn ‘ t make earnings in this company after that it is believed that it is argued.
that you know he has done 100% of his job so he can” t. be penalized yep he can” t be due to the fact that he doesn ‘ t have the cash 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 money service provider.
will certainly bear the loss it ‘ s suggested like that in islam.
alright is that clear so this is what mudaraba is. just two individuals one will certainly bring the resources other will certainly bring the skill. If there is an earnings it will it will certainly be split in the it will be, yeah. dispersed in the pre-decided proportion yeah and if there is a loss the loss. will entirely be birthed by the resources provider and there is an. If this individual is involved in some scams or anything, exemption over here. Since of his neglect or his, yeah if the loss is.
he is guilty after that the loss will be borne by this individual okay.
in situation mistake exists by he or she clear otherwise normally the entire loss.
will be birthed by the capital company this is what Mudaraba agreement is straightforward.
collaboration okay now allow” s see another one currently. If you like yeah or else simply, you can stop briefly the video and take this note.
continue currently below we have the 2nd kind of.
agreement see here Musharaka currently Musharaka is additionally very same like.
mudaraba just however there allow distinctions so see below.
it” s a joint business or partnership framework yeah same like Mudaraba.
just where a minimum of two celebrations or more yeah that” s the major thing here the. parties can be more likewise in mudaraba we saw there will certainly be just. 2 events right one rab-al-maal the money supplier and.
one the labor company Mudarib yet below it” s
not. like that below the parties can be more yeah several celebrations can be there.
yep so see here multiple parties can be there they will certainly bring their resources as.
well as skills bring capital and abilities and everybody.
are working partners yeah or they desire they can be sleeping.
companions yet everybody can be what they can be functioning partner they.
can join the monitoring of business.
all right and these individual the companions they are called as.
musharrek in this agreement okay musharik everyone are musharik.
musharik musharik musharik fine everyone can participate in.
administration currently the major difference below is if there is a.
profit then the revenue will be distributed in the.
pre-decided ratio great whatever they choose in the beginning itself.
however then if there is a loss after that the loss has to be strictly it has to be.
dispersed in the funding ratio okay whatever resources.
they brought in that ratio only the loss will be.
shared amongst them develop among them all right so this is what Musharaka is alright.
the primary distinction is the loss difference in the mudaruba.
in the mudrabah we saw the loss is entirely borne by the finance provider.
yeah but below the finance is offered by everyone.
so what will certainly happen below is that the loss will certainly be.
distributed in the capital ratio of the mushariks the companions.
clear and one even more distinction was that every person are working companion over below.
everyone can get involved in administration yet below.
just the the ability supplier the manager he” s the supervisor right’he ‘
s only. participating right here in mudaraba in mudaraba I indicate yeah.In Musharaka
below every person can participate in the.
monitoring of business clear so this is what Musharaka is simple extremely simple.
now allow” s go on to the third contract you recognized appropriate Musharaka nothing.
it” s simple 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 way regarding produce returns to investors.
without infringing islamic legislation that forbids passion now typically.
traditionally what happens yeah normal bonds just how are they? when the.
business issues bond the traditional bonds after that.
they pay passion on them to the bond owners right if you have bought the.
bonds that indicates you are obtaining interest from them.
yeah you as a financier if you have actually acquired any kind of bonds then you will be.
getting interest from the firm which has actually provided the.
bonds isn” t it indeed that ‘ s what conventionally typically occurs but right here. in islam rate of interest is totally forbidden. interest is not enabled so if rate of interest is not permitted after that just how.
can bonds work that” s what you need to consider all.
right so below the bonds are structured in such a way.
to generate returns to investors without infringing islamic legislation that prohibits.
passion interest can” t be there in these bonds in this these bonds. rate of interest are not there but investors are getting returns. just how does that job allow ‘ s comprehend this see here sukuk target at.
profit sharing by offering the capitalist possession in company and assets currently.
I will select and supervisor sukuk supervisor. So that sukuk supervisor will certainly be you know in managing.
everything relevant to these bonds fine so currently what the business will do is.
company will purchase an asset usually why do you increase.
financial obligation money mostly to buy property right so what you” re going to do is you. are mosting likely to buy a possession the business is going to acquire an asset.
right so currently what the firm will do is company will provide you.
ownership in those assets due to the fact that which money is this.
this cash is of bond owners you are a bondholder right why you are a.
bondholder since you have subscribed to the bonds.
the sukuk right so you will certainly get ownership of the.
asset which has been bought from your cash yeah the capital which the.
firm will certainly get from you yeah after providing the bonds from that.
they will acquire the asset and the ownership of that asset will be.
When you end up being owner of, offered to you to the bondholders great so.
something yes when you become owner of something.
then you are entitled to the advantages and risk coming out of that.
possession right so whatever earnings that will be generated from that asset.
you will obtain a part of that so that” s just how you will obtain.
earnings from these bonds okay you will not obtain interest alright passion is.
totally restricted in islam you know that yeah however below in sukuk.
there is a profit sharing purpose by supplying the financier ownership in.
When you obtain the ownership you are, asset right.
qualified to the benefits in addition to the threat of that property.
so whatever money has been generated due to the fact that of that asset.
yeah a part of that will certainly be sent to you yeah it will certainly be offered to you it will certainly be.
distributed to you appropriate engagement in revenue that” s just how you will. Because you have, participate in the earnings of that asset yeah.
it right you as a sukuk holder penalty so this.
is just how sukuk works so unlike conventional bonds sukuk are.
linked to an underlying tangible asset yeah an asset.
will certainly exist you bear in mind the what the last concept.
of islamic financing riches need to be created from legitimate.
trade and property based investment all right this is what.
it is yeah there is an underlying possession over here you are not.
just getting you know rate of interest no you are not getting.
passion over right here you are getting revenue you are getting.
income over right here from the possession based investment all right.
is that clear easy right so this is what sukuk is.
all right straightforward okay and afterwards the 4th type of contract we have.
is ajara ijara is similar to a lease agreement fine.
When we believe concerning leases what comes to our mind we assume about the principal.
quantity plus interest yes that” s just how
leases. works isn” t it the lessee will certainly pay to the lower.
for utilizing the property and that repayment will certainly include.
what principal amount plus passion today right here in islam.
passion is totally prohibited so exactly how these agreements are going to work.
yeah how is it going to work so see here that” s what we have to understand. an ijara purchase is the islamic matching of a lease agreement.
where one celebration owner enables one more party lessee.
to utilize their property against the repayment of a rental fee.
now below because passion is restricted so a predetermined rental cost will be.
set in between the parties the minimal and.
lessee which rental cost will be paid which doesn” t consist of passion it is
a. determined fee okay it” s not like worsening rate of interest and all.
good yes so currently let” s comprehend that in quite information see right here.
allow” s state you require an auto and you don ‘ t have money to acquire it outright alright.’instantly you wear ‘ t have cash to acquire it so what are you mosting likely to. do is you are going
to technique islamic bank. all right and you will obtain a contract with them of a. ijara yeah you will certainly obtain an ijara agreement currently what is this ijara agreement what. will happen is see right here as i said you require a vehicle so bank will. buy the car and make the payment in whole in one go. So they will certainly make the entire payment to the vendor. and financial institution will certainly advise the supplier this honda display room this supervisor. to provide it to you okay so the vehicle will certainly be delivered to you.
alright you will have the setting of the car yeah and you will certainly have to make an.
preliminary deposit to the bank alright initial some cash you need to.
pay to the bank for the guarantee or something yes.
The possession of that cars and truck will certainly remain with the financial institution.
okay the possession will continue to be with the bank so whatever advantages and threat.
are there of that property of that automobile will remain with the.
financial institution itself so if there is any kind of significant maintenance expense.
yes there” s any upkeep after that the financial institution will certainly have to develop the maintenance.
price and whatever yeah but if there” s a small maintenance. or something then you will certainly need to construct it.
on your own today just how you are mosting likely to pay to the financial institution.
you are going to pay in form of leasings all right the services will be concurred.
in the starting itself all right fixed rentals penalty.
You will pay the leasings and at the end of the lease period.
yeah you will likewise make a decision the least period additionally with the financial institution at the.
beginning itself so at the end of the lease period what.
will certainly take place goes to completion of the lease period the bank.
will offer you option do you intend to get the property yeah buy.
the automobile simply by making some added additional.
payment yeah a new arrangement will certainly be made.
or do you intend to return the car back to the bank yeah.
This supervisor will provide the car to you he will certainly offer the position to you. The ownership will certainly stay with the bank and financial institution will.
due to the fact that the risk and benefit are with the financial institution.
since they have the ownership right so indeed and you will be paying normal in.
rentals to the bank and at the end you will certainly be offered the choice.
either to get or return the possession back clear this is what a lease contract is.
If you want you can stop briefly the video clip and, easy lease contract yes.
take this down ideal all right so now let” s relocate on currently here we have.
the last the last agreement of islamic finance.
that you” re going to see in this video clip Murabaha the 5th contract.
thus far we have actually covered 4 contracts mudaraba musharaka.
sukuk and ijara so now what is this Murabaha.
see Murabaha is just simply a credit sale fine credit sale agreement that” s.
all Murabaha is.See the meaning over below a.
Murabaha transaction is a credit sale.
or an installation credit sale and is primarily utilized for the purchase of goods.
for prompt distribution on credit basis.
now you already understand what is installment credit report sale if the goods are of hundred.
dollars you will pay 20 20 20 in installments now what is.
credit basis? credit indicates what you are.
delaying the repayment at a later date fine you will pay at a.
later date that” s what deferred repayment basis is easy.
and now let” s comprehend exactly how this muraba will function.
see for example allowed” s claim you require to buy an asset or some products.
and you don” t have money to acquire it outright instantly you don” t have. sufficient money you have some money so currently what are you.
mosting likely to do is you have to enter a contract contract with the bank.
islamic bank undoubtedly right so currently what the financial institution will do is.
financial institution will certainly purchase the property or the goods for you.
and the bank will offer it to you at an earnings margin.
If the bank acquired that asset for 100.
So what the financial institution will certainly do financial institution will certainly include 20.
extra profit 100 plus 20 a markup and sell it to you for 120 and in the.
starting just they will certainly be it will certainly be decided yeah the markup and.
every little thing will be different decided at the.
beginning itself it is not like the bank will conceal any type of regards to agreement from you.
alright they will divulge everything so it will.
not be injustice to you right and afterwards what you have to do is.
after getting the possession you have to pay in type of installments.
alright whatever you concurred upon yeah in installations or on delayed.
payment basis you can additionally guarantee them to pay at a later date.
yeah that can additionally take place yes straightforward yeah this is what Murabaha.
is yeah you intend to ask it you approach to the bank financial institution will certainly acquire it for.
you and offer it to you with a revenue margin price plus revenue.
you have to pay in type of installments or.
credit basis clear that” s what muraba. is basic is that easy so currently what i” m gon na do is i ‘ m gon na include timestamps in. the video clip if you wish to revise or go back to any one of these contracts.
Simply go to the description and see the timestamps and go back and.
see these okay great alright then see in the following video right that” s it for today.
If any purchase involves passion then that” s not allowed in islamic. Currently here what will happen this business either this
business organization will certainly. So that sukuk supervisor will certainly be you know in managing.
So they will certainly make the whole repayment to the vendor. The ownership will certainly stay with the bank and bank will.