[8/7, 12:21 PM] +971 55 784 7142: Mudarabah
πππ
"Mudarabah" or Profit-and-loss sharing contract is a special kind of partnership where one partner gives money to another for investing it in a commercial enterprise.
[8/7, 12:21 PM] +971 55 784 7142: πππtake note!!!
The Mudarabah (Profit Sharing) is a contract, with ONE party providing 100 percent of the capital and the other party providing its specialized knowledge to invest the capital and manage the investment project. Profits generated are shared between the parties according to a pre-agreed ratio. If there is a loss, the first partner "rabb-ul-mal" will lose his capital, and the other party "mudarib" will lose the time and effort invested in the project The profit is usually shared 50%-50% or 60%-40% for rabb-ul-mal.
[8/7, 12:21 PM] +971 55 784 7142: With the rise of Islamic banking since 1975, Murabahah has become "the most prevalent" Islamic financing mechanism.
π πMurabahah works as finance when the lender/buyer pays the bank/seller for the good(s) over a period of time, compensating the bank/seller for the time value of its money in the form of "profit" not interest. With a fixed rate of profit determined by the profit margin for the purchase of a real asset, this is a fixed-income loan. The bank is not compensated for the time value of money outside of the contracted term (i.e., the bank cannot charge additional profit on late payments); however, the asset remains as a mortgage with the bank until the default is settled.
[8/7, 12:21 PM] +971 55 784 7142: . The capital investment should normally come from both partners. both should have some skills in the game. Ie one contributes capital and the other provides the technical knowhow in the business
[8/7, 12:21 PM] +971 55 784 7142: Ie if party A provides the funds for investment.... Then party B is to run the business .... So here we see that there is shared responsibility btn the two parties
[8/7, 12:21 PM] +971 55 784 7142: ➡MurΓ’baαΈ₯ah
Murabahah
This concept refers to the sale of good(s) (such as real estate, commodities, or a vehicle) where the purchase and selling price, other costs, and the profit margin are clearly stated at the time of the sale agreement.
[8/7, 12:21 PM] +971 55 784 7142: Istisna
Istisna (Manufacturing Finance) is a process where payments are made in stages to facilitate step wise progress in the Manufacturing / processing / construction works. Istisna enables any construction company get finance to construct slabs / sections of a building by availing finances in installments for each slab. Istisna also helps manufacturers to avail finance for manufacturing / processing cost for any large order for goods supposed to supply in stages. Istisna helps use of limited funds to develop higher value goods/assets in different stages / contracts.
[8/7, 12:21 PM] +971 55 784 7142: π Some Muslims consider this to be the only type of loan that does not violate the prohibition on 'riba, for it alone is a loan that truly does not compensate the creditor for the time value of money.
[8/7, 12:21 PM] +971 55 784 7142: MurΓ’baαΈ₯ah
Murabahah
This concept refers to the sale of good(s) (such as real estate, commodities, or a vehicle) where the purchase and selling price, other costs, and the profit margin are clearly stated at the time of the sale agreement.With the rise of Islamic banking since 1975, Murabahah has become "the most prevalent" Islamic financing mechanism. Murabahah works as finance when the lender/buyer pays the bank/seller for the good(s) over a period of time, compensating the bank/seller for the time value of its money in the form of "profit" not interest. With a fixed rate of profit determined by the profit margin for the purchase of a real asset, this is a fixed-income loan. The bank is not compensated for the time value of money outside of the contracted term (i.e., the bank cannot charge additional profit on late payments); however, the asset remains as a mortgage with the bank until the default is settled.
This type of transaction is similar to rent-to-own arrangements for furniture or appliances that are common in North American stores.
[8/7, 12:21 PM] +971 55 784 7142: πππ
This is often used in investment projects, letters of credit, and the purchase or real estate or property. In the case of real estate or property, the bank assess an imputed rent and will share it as agreed in advance.
[8/7, 12:21 PM] +971 55 784 7142: Musharakah (joint venture)
Musharakah is a relationship between two parties or more that contribute capital to a business and divide the net profit and loss pro rata.
[8/7, 12:21 PM] +971 55 784 7142: π. For example, in a car financing facility, a customer enters into the first contract and leases the car from the owner (bank) at an agreed amount over a specific period. When the lease period expires, the second contract comes into effect, which enables the customer to purchase the car at an agreed price. The bank generates a profit by determining in advance the cost of the item, its residual value at the end of the term and the time value or profit margin for the money being invested in purchasing the product to be leased for the intended term. The combining of these three figures becomes the basis for the contract between the Bank and the client for the initial lease contract. two parties would enter into three concurrent and interrelated legal contracts, the net effect being the paying of a fee for the use of money for the term of the loan. The use of concurrent interrelated contracts is also prohibited under Shariah Law.
[8/7, 12:21 PM] +971 55 784 7142: πππ
[8/7, 12:21 PM] +971 55 784 7142: πMusawamah is the negotiation of a selling price between two parties without reference by the seller to either costs or asking price. While the seller may or may not have full knowledge of the cost of the item being negotiated, they are under no obligation to reveal these costs as part of the negotiation process. This difference in obligation by the seller is the key distinction between Murabahah and Musawamah with all other rules as described in Murabahah remaining the same. Musawamah is the most common type of trading negotiation seen in Islamic commerce.
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Musharakah (joint venture)
Musharakah is a relationship between two parties or more that contribute capital to a business and divide the net profit and loss pro rata. This is often used in investment projects, letters of credit, and the purchase or real estate or property. In the case of real estate or property, the bank assess an imputed rent and will share it as agreed in advance.All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit is distributed among the partners in pre-agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions. This concept is distinct from fixed-income investing (i.e. issuance of loans).
[8/7, 12:21 PM] +971 55 784 7142: And lastly we have
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Bai' al 'inah (sale and buy-back agreement)
The Faisal Islamic Bank in Khartoum.
Literally, "A loan in the form of a sale". Bai' al inah is a financing arrangement where the financier buys an asset from the customer on spot basis, with the price paid by the financier constituting the "loan". Subsequently the asset is sold back to the customer with deferred payment made in installments, constituting paying back the loan. There are differences of opinion amongst the scholars on the permissibility of Bai' al 'inah, however this is practised in Malaysia and the like jurisdictions.
[8/7, 12:21 PM] +971 55 784 7142: The other principle of Islamic banking is
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Musawamah
Musawamah
If the exact cost of the item(s) sold to the lender/buyer cannot be or are not ascertained, a financial transaction cannot be done on the basis of Murabahah, it is called musawamah (bargaining).
[8/7, 12:21 PM] +971 55 784 7142: Prorata means according to ratios
[8/7, 12:21 PM] +971 55 784 7142: ➡➡ Ijarah thumma al bai' (hire purchase)
Parties enter into contracts that come into effect serially, to form a complete lease/ buyback transaction. The first contract is an Ijarah that outlines the terms for leasing or renting over a fixed period, and the second contract is a Bai that triggers a sale or purchase once the term of the Ijarah is complete.
[8/7, 12:21 PM] +971 55 784 7142: All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit is distributed among the partners in pre-agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions. This concept is distinct from fixed-income investing (i.e. issuance of loans).
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Qard hassan/ Qardul hassan (good loan/benevolent loan)
Qard hassan is a loan extended on a goodwill basis, with the debtor only required to repay the amount borrowed. However, the debtor may, at his or her discretion, pay an extra amount beyond the principal amount of the loan (without promising it) as a token of appreciation to the creditor. In the case that the debtor does not pay an extra amount to the creditor, this transaction is a true interest-free loan.
[8/7, 12:21 PM] +971 55 784 7142: Bai' muajjal (credit sale)
Literally bai' muajjal means a credit sale. Technically, it is a financing technique adopted by Islamic banks that takes the form of murabahah muajjal. It is a contract in which the bank earns a profit margin on the purchase price and allows the buyer to pay the price of the commodity at a future date in a lump sum or in installments. It has to expressly mention cost of the commodity and the margin of profit is mutually agreed. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. Bai' muajjal is also called a deferred-payment sale. However, one of the essential descriptions of riba is an unjustified delay in payment or either increasing or decreasing the price if the payment is immediate or delayed.
[8/7, 12:21 PM] +971 55 784 7142: ➡ Ijarah-wal-iqtina
Ijarah wal iqtina is
A contract under which an Islamic bank provides equipment, building, or other assets to the client against an agreed rental together with a unilateral undertaking by the bank or the client that at the end of the lease period, the ownership in the asset would be transferred to the lessee. The undertaking or the ome an integral part of the lease contract to make it conditional. The rentals as well as the purchase price are fixed in such manner that the bank gets back its principal sum along with profit over the period of lease.
[8/7, 12:21 PM] +971 55 784 7142: πππ
It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. The objects of this sale are goods and cannot be gold, silver, or currencies based on these metals. Barring this, Bai Salam covers almost everything that is capable of being definitely described as to quantity, quality, and workmanship.
[8/7, 12:21 PM] +971 55 784 7142: May Allah make us benefit from that info we have gain and save us from ribbah ....
Allahumah Aameen
[8/7, 12:21 PM] +971 55 784 7142: That's the end of our lecture abt Islamic banking .... In sha Allah
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Bai Salam
Bai salam means a contract in which advance payment is made for goods to be delivered later on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract.
[8/7, 12:21 PM] +971 55 784 7142: Basic features and conditions of Salam
πThe transaction is considered Salam if the buyer has paid the purchase price to the seller in full at the time of sale. This is necessary so that the buyer can show that they are not entering into debt with a second party in order to eliminate the debt with the first party, an act prohibited under Sharia. The idea of Salam is normally different from the other either in its quality or in its size or weight and their exact specification is not generally possible.
Salam cannot be effected on a particular commodity or on a product of a particular field or farm. For example, if the seller undertakes to supply the wheat of a particular field, or the fruit of a particular tree, the salam will not be valid, because there is a possibility that the crop of that particular field or the fruit of that tree is destroyed before delivery, and, given such possibility, the delivery remains uncertain. The same rule is applicable to every commodity the supply of which is not certain.
It is necessary that the quality of the commodity (intended to be purchased through salam) is fully specified leaving no ambiguity which may lead to a dispute. All the possible details in this respect must be expressly mentioned.
It is also necessary that the quantity of the commodity is agreed upon in unequivocal terms. If the commodity is quantified in weights according to the usage of its traders, its weight must be determined, and if it is quantified through measures, its exact measure should be known. What is normally weighed cannot be quantified in measures and vice versa.
The exact date and place of delivery must be specified in the contract.
Salam cannot be effected in respect of things which must be delivered at spot. For example, if gold is purchased in exchange of silver, it is necessary, according to Shari'ah, that the delivery of both be simultaneous. Here, salam cannot work. Similarly, if wheat is bartered for barley, the simultaneous delivery of both is necessary for the validity of sale. Therefore the contract of salam in this case is not allowed.
This is the most preferred financing structure and carries higher order Shariah compliance.
Hibah (gift)
This is a token given voluntarily by a debtor in return for a loan. Hibah usually arises in practice when Islamic banks voluntarily pay their customers a 'gift' on savings account balances, representing a portion of the profit made by using those savings account balances in other activities.
While it appears similar to interest and may in effect have the same outcome, Hibah is a voluntary payment made (or not made) at the bank's discretion. It cannot be guaranteed, similar to dividends earned by shares. Additionally, it is not time bound but is instead at the bank's discretion. However, the opportunity of receiving high Hibah will draw in customers' savings, providing the bank with capital necessary to create its profits; if the ventures are profitable, then some of those profits may be gifted back to its customers as Hibah. It is important to note once again that although the preceding descriptions of Hibah do sound like interest payments, there is a fundamental difference beneath: Hibah is voluntary, and at the sole discretion of the giver, whereas payment of interest is contractual obligation that is made in advance between the parties.
.
[8/7, 3:47 PM] +256 786 022775: Menstruation Testimony!
During church service, this 16-year old pastor's daughter stood up and says:
"praise the Lord!" everybody shouted with joy, "Hallelujah".
She continued:
"since the age of 13, I've been experiencing painful monthly periods. But now, after a series of Bible studies and prayers with brother Jimmy in his house, my monthly periods have stopped for more than 3 months now. No more pain, no more menstruation. You can see I'm even getting fatter and prettier. We are starting to pray seriously about the small problem of vomiting, especially in the morning. Praise the Lord".
The whole church was silent! Brother Jimmy fainted πππ
πππ
"Mudarabah" or Profit-and-loss sharing contract is a special kind of partnership where one partner gives money to another for investing it in a commercial enterprise.
[8/7, 12:21 PM] +971 55 784 7142: πππtake note!!!
The Mudarabah (Profit Sharing) is a contract, with ONE party providing 100 percent of the capital and the other party providing its specialized knowledge to invest the capital and manage the investment project. Profits generated are shared between the parties according to a pre-agreed ratio. If there is a loss, the first partner "rabb-ul-mal" will lose his capital, and the other party "mudarib" will lose the time and effort invested in the project The profit is usually shared 50%-50% or 60%-40% for rabb-ul-mal.
[8/7, 12:21 PM] +971 55 784 7142: With the rise of Islamic banking since 1975, Murabahah has become "the most prevalent" Islamic financing mechanism.
π πMurabahah works as finance when the lender/buyer pays the bank/seller for the good(s) over a period of time, compensating the bank/seller for the time value of its money in the form of "profit" not interest. With a fixed rate of profit determined by the profit margin for the purchase of a real asset, this is a fixed-income loan. The bank is not compensated for the time value of money outside of the contracted term (i.e., the bank cannot charge additional profit on late payments); however, the asset remains as a mortgage with the bank until the default is settled.
[8/7, 12:21 PM] +971 55 784 7142: . The capital investment should normally come from both partners. both should have some skills in the game. Ie one contributes capital and the other provides the technical knowhow in the business
[8/7, 12:21 PM] +971 55 784 7142: Ie if party A provides the funds for investment.... Then party B is to run the business .... So here we see that there is shared responsibility btn the two parties
[8/7, 12:21 PM] +971 55 784 7142: ➡MurΓ’baαΈ₯ah
Murabahah
This concept refers to the sale of good(s) (such as real estate, commodities, or a vehicle) where the purchase and selling price, other costs, and the profit margin are clearly stated at the time of the sale agreement.
[8/7, 12:21 PM] +971 55 784 7142: Istisna
Istisna (Manufacturing Finance) is a process where payments are made in stages to facilitate step wise progress in the Manufacturing / processing / construction works. Istisna enables any construction company get finance to construct slabs / sections of a building by availing finances in installments for each slab. Istisna also helps manufacturers to avail finance for manufacturing / processing cost for any large order for goods supposed to supply in stages. Istisna helps use of limited funds to develop higher value goods/assets in different stages / contracts.
[8/7, 12:21 PM] +971 55 784 7142: π Some Muslims consider this to be the only type of loan that does not violate the prohibition on 'riba, for it alone is a loan that truly does not compensate the creditor for the time value of money.
[8/7, 12:21 PM] +971 55 784 7142: MurΓ’baαΈ₯ah
Murabahah
This concept refers to the sale of good(s) (such as real estate, commodities, or a vehicle) where the purchase and selling price, other costs, and the profit margin are clearly stated at the time of the sale agreement.With the rise of Islamic banking since 1975, Murabahah has become "the most prevalent" Islamic financing mechanism. Murabahah works as finance when the lender/buyer pays the bank/seller for the good(s) over a period of time, compensating the bank/seller for the time value of its money in the form of "profit" not interest. With a fixed rate of profit determined by the profit margin for the purchase of a real asset, this is a fixed-income loan. The bank is not compensated for the time value of money outside of the contracted term (i.e., the bank cannot charge additional profit on late payments); however, the asset remains as a mortgage with the bank until the default is settled.
This type of transaction is similar to rent-to-own arrangements for furniture or appliances that are common in North American stores.
[8/7, 12:21 PM] +971 55 784 7142: πππ
This is often used in investment projects, letters of credit, and the purchase or real estate or property. In the case of real estate or property, the bank assess an imputed rent and will share it as agreed in advance.
[8/7, 12:21 PM] +971 55 784 7142: Musharakah (joint venture)
Musharakah is a relationship between two parties or more that contribute capital to a business and divide the net profit and loss pro rata.
[8/7, 12:21 PM] +971 55 784 7142: π. For example, in a car financing facility, a customer enters into the first contract and leases the car from the owner (bank) at an agreed amount over a specific period. When the lease period expires, the second contract comes into effect, which enables the customer to purchase the car at an agreed price. The bank generates a profit by determining in advance the cost of the item, its residual value at the end of the term and the time value or profit margin for the money being invested in purchasing the product to be leased for the intended term. The combining of these three figures becomes the basis for the contract between the Bank and the client for the initial lease contract. two parties would enter into three concurrent and interrelated legal contracts, the net effect being the paying of a fee for the use of money for the term of the loan. The use of concurrent interrelated contracts is also prohibited under Shariah Law.
[8/7, 12:21 PM] +971 55 784 7142: πππ
[8/7, 12:21 PM] +971 55 784 7142: πMusawamah is the negotiation of a selling price between two parties without reference by the seller to either costs or asking price. While the seller may or may not have full knowledge of the cost of the item being negotiated, they are under no obligation to reveal these costs as part of the negotiation process. This difference in obligation by the seller is the key distinction between Murabahah and Musawamah with all other rules as described in Murabahah remaining the same. Musawamah is the most common type of trading negotiation seen in Islamic commerce.
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Musharakah (joint venture)
Musharakah is a relationship between two parties or more that contribute capital to a business and divide the net profit and loss pro rata. This is often used in investment projects, letters of credit, and the purchase or real estate or property. In the case of real estate or property, the bank assess an imputed rent and will share it as agreed in advance.All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit is distributed among the partners in pre-agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions. This concept is distinct from fixed-income investing (i.e. issuance of loans).
[8/7, 12:21 PM] +971 55 784 7142: And lastly we have
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Bai' al 'inah (sale and buy-back agreement)
The Faisal Islamic Bank in Khartoum.
Literally, "A loan in the form of a sale". Bai' al inah is a financing arrangement where the financier buys an asset from the customer on spot basis, with the price paid by the financier constituting the "loan". Subsequently the asset is sold back to the customer with deferred payment made in installments, constituting paying back the loan. There are differences of opinion amongst the scholars on the permissibility of Bai' al 'inah, however this is practised in Malaysia and the like jurisdictions.
[8/7, 12:21 PM] +971 55 784 7142: The other principle of Islamic banking is
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Musawamah
Musawamah
If the exact cost of the item(s) sold to the lender/buyer cannot be or are not ascertained, a financial transaction cannot be done on the basis of Murabahah, it is called musawamah (bargaining).
[8/7, 12:21 PM] +971 55 784 7142: Prorata means according to ratios
[8/7, 12:21 PM] +971 55 784 7142: ➡➡ Ijarah thumma al bai' (hire purchase)
Parties enter into contracts that come into effect serially, to form a complete lease/ buyback transaction. The first contract is an Ijarah that outlines the terms for leasing or renting over a fixed period, and the second contract is a Bai that triggers a sale or purchase once the term of the Ijarah is complete.
[8/7, 12:21 PM] +971 55 784 7142: All providers of capital are entitled to participate in management, but not necessarily required to do so. The profit is distributed among the partners in pre-agreed ratios, while the loss is borne by each partner strictly in proportion to respective capital contributions. This concept is distinct from fixed-income investing (i.e. issuance of loans).
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Qard hassan/ Qardul hassan (good loan/benevolent loan)
Qard hassan is a loan extended on a goodwill basis, with the debtor only required to repay the amount borrowed. However, the debtor may, at his or her discretion, pay an extra amount beyond the principal amount of the loan (without promising it) as a token of appreciation to the creditor. In the case that the debtor does not pay an extra amount to the creditor, this transaction is a true interest-free loan.
[8/7, 12:21 PM] +971 55 784 7142: Bai' muajjal (credit sale)
Literally bai' muajjal means a credit sale. Technically, it is a financing technique adopted by Islamic banks that takes the form of murabahah muajjal. It is a contract in which the bank earns a profit margin on the purchase price and allows the buyer to pay the price of the commodity at a future date in a lump sum or in installments. It has to expressly mention cost of the commodity and the margin of profit is mutually agreed. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. Bai' muajjal is also called a deferred-payment sale. However, one of the essential descriptions of riba is an unjustified delay in payment or either increasing or decreasing the price if the payment is immediate or delayed.
[8/7, 12:21 PM] +971 55 784 7142: ➡ Ijarah-wal-iqtina
Ijarah wal iqtina is
A contract under which an Islamic bank provides equipment, building, or other assets to the client against an agreed rental together with a unilateral undertaking by the bank or the client that at the end of the lease period, the ownership in the asset would be transferred to the lessee. The undertaking or the ome an integral part of the lease contract to make it conditional. The rentals as well as the purchase price are fixed in such manner that the bank gets back its principal sum along with profit over the period of lease.
[8/7, 12:21 PM] +971 55 784 7142: πππ
It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. The objects of this sale are goods and cannot be gold, silver, or currencies based on these metals. Barring this, Bai Salam covers almost everything that is capable of being definitely described as to quantity, quality, and workmanship.
[8/7, 12:21 PM] +971 55 784 7142: May Allah make us benefit from that info we have gain and save us from ribbah ....
Allahumah Aameen
[8/7, 12:21 PM] +971 55 784 7142: That's the end of our lecture abt Islamic banking .... In sha Allah
[8/7, 12:21 PM] +971 55 784 7142: ➡➡Bai Salam
Bai salam means a contract in which advance payment is made for goods to be delivered later on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract.
[8/7, 12:21 PM] +971 55 784 7142: Basic features and conditions of Salam
πThe transaction is considered Salam if the buyer has paid the purchase price to the seller in full at the time of sale. This is necessary so that the buyer can show that they are not entering into debt with a second party in order to eliminate the debt with the first party, an act prohibited under Sharia. The idea of Salam is normally different from the other either in its quality or in its size or weight and their exact specification is not generally possible.
Salam cannot be effected on a particular commodity or on a product of a particular field or farm. For example, if the seller undertakes to supply the wheat of a particular field, or the fruit of a particular tree, the salam will not be valid, because there is a possibility that the crop of that particular field or the fruit of that tree is destroyed before delivery, and, given such possibility, the delivery remains uncertain. The same rule is applicable to every commodity the supply of which is not certain.
It is necessary that the quality of the commodity (intended to be purchased through salam) is fully specified leaving no ambiguity which may lead to a dispute. All the possible details in this respect must be expressly mentioned.
It is also necessary that the quantity of the commodity is agreed upon in unequivocal terms. If the commodity is quantified in weights according to the usage of its traders, its weight must be determined, and if it is quantified through measures, its exact measure should be known. What is normally weighed cannot be quantified in measures and vice versa.
The exact date and place of delivery must be specified in the contract.
Salam cannot be effected in respect of things which must be delivered at spot. For example, if gold is purchased in exchange of silver, it is necessary, according to Shari'ah, that the delivery of both be simultaneous. Here, salam cannot work. Similarly, if wheat is bartered for barley, the simultaneous delivery of both is necessary for the validity of sale. Therefore the contract of salam in this case is not allowed.
This is the most preferred financing structure and carries higher order Shariah compliance.
Hibah (gift)
This is a token given voluntarily by a debtor in return for a loan. Hibah usually arises in practice when Islamic banks voluntarily pay their customers a 'gift' on savings account balances, representing a portion of the profit made by using those savings account balances in other activities.
While it appears similar to interest and may in effect have the same outcome, Hibah is a voluntary payment made (or not made) at the bank's discretion. It cannot be guaranteed, similar to dividends earned by shares. Additionally, it is not time bound but is instead at the bank's discretion. However, the opportunity of receiving high Hibah will draw in customers' savings, providing the bank with capital necessary to create its profits; if the ventures are profitable, then some of those profits may be gifted back to its customers as Hibah. It is important to note once again that although the preceding descriptions of Hibah do sound like interest payments, there is a fundamental difference beneath: Hibah is voluntary, and at the sole discretion of the giver, whereas payment of interest is contractual obligation that is made in advance between the parties.
.
[8/7, 3:47 PM] +256 786 022775: Menstruation Testimony!
During church service, this 16-year old pastor's daughter stood up and says:
"praise the Lord!" everybody shouted with joy, "Hallelujah".
She continued:
"since the age of 13, I've been experiencing painful monthly periods. But now, after a series of Bible studies and prayers with brother Jimmy in his house, my monthly periods have stopped for more than 3 months now. No more pain, no more menstruation. You can see I'm even getting fatter and prettier. We are starting to pray seriously about the small problem of vomiting, especially in the morning. Praise the Lord".
The whole church was silent! Brother Jimmy fainted πππ
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