Knowing Islamic Banking Products

Banking is an society with the intention of go three foremost functions, namely: Receiving deposits of money, lending money, and money allowance services. For Islamic Banking, basically three functions can be performed, apart from as in performing banking functions to sort out things with the intention of are prohibited in sharia.

I. What are the basic doctrine of Islamic Finance?

The fundamental doctrine governing Islamic Financing are the receipt of appeal is prohibibited and Sharia prohibits transactions in the which Some or all of the Following elements are having a bet, uncertainty, prohibited cargo and activities.

Basically Islamic Principles, as described higher than is to dodge the sundown:

Gambling (Gambling)-May apply to contact in futures and options to extents That They are speculative.
Gharar (uncertainty) in contracts, here is a bar on the deal of items whose existence or characteristics are not go particular, and in the lead the which contractual stipulations are confusing or doubtful.
Riba (interest) - it is interpreted as one returns on money the which is preset in amount and therefore includes the present interest-based financing
Haram (prohibited) cargo and whose activities are prohibited. For occasion Such as: Pork, alcohol, having a bet services, prostitution, machinery pro the manufacturing of alcohol, and liquor, and that. But, uncommon views exits on many suitcases as tobacco, and hotels.

II. What type of Islamic banking products?

Sharia banking products can be on bad terms into three parts, namely: 1) Product distribution funds, 2) Raising Product back, 3) Items correlated to banking services provided to its customers.

III. Product distribution of funds

Distinguished surrounded by 3 (three) categories with the intention of are distinguished by their intended aid;

Financing transaction which is intended to be inflicted with the goods, conceded made known with the opinion of export and promotion
Financing transaction which is intended to make the service made by the opinion of rent
Financing transactions pro affair cooperation which are aimed to make by some time ago the goods and services, with the opinion of profit sharing.

Sell ​​1.Prinsip

The opinion of export and promotion, dealing with the conveying of ownership of the goods or things. Bank's profit level is single-minded by the front and be a part of the fee of goods sold. Sale and hold transactions are distinguished on the form of payment and manner of speaking of goods as follows:

A. Murabaha financing

The Bank acted as the seller and the customer as a buyer. The promotion fee is the hold fee plus gains Bank of suppliers. Both parties should decide on fee and payment stipulations. The deal fee built-in in the deal and hold agreement, and did not exchange all through the contract validity. Inside this transaction the goods are delivered with the ceremony, while the payment is tough.

B. Greeting

Sale and hold transactions everywhere goods are bought and sold does not exist. Therefore, the goods are delivered in a tough, being paid in cash. Bank acts as a buyer, a customer as a seller. At initially glance this transaction akin to export and promotion debt bondage, but in the salutation, quantity, quality, fee and manner of speaking calculate pro particular specified goods. Inside practice, goods with the intention of be inflicted with been submitted to the Bank, the Bank could resell the goods in cash or repayment. The deal fee fit is the hold fee plus a profit.

These transactions commonly useful in the financing of goods with the intention of does not exist, such as the hold of agricultural cargo by the layer, pro shortly resale in cash or repayment.

General Terms of salutation:

Purchase the products should be visibly renowned specifications: Type, brand / affect, size, quality and quantity.
When the products expected sort out not match, the customer should be reliable, amongst others, return the funds with the intention of be inflicted with been expected or exchange the goods to order.
Because the Bank did not aid the items purchased / prearranged as have a supply of (inventory), the Bank's doable to go a salutation ceremony by the third have fun. The means is called the analogous greetings.

C. Istishna

Resembles salutation, but the payment can be made by the layer in approximately payment stipulations. Skim istishna in Islamic Banking, commonly performed pro manufacturing and construction financing. Specification of the prearranged items to be apparent, such as: Type, size, quality and quantity. The deal fee built-in in the contract istishna and must not be altered all through contract ratifying.

2. Principle rental (Ijarah)

Ijarah transaction based on the conveying of repayment. When the object of deal and hold transactions are goods, at that time the object ijarah services. At the aim of the rent, the layer could advertise goods to customers disewakannya. The deal fee and rental fee agreed in the lead by the commencement of the agreement.

3.Prinsip Profit Sharing

Principles pro the results split into two, namely:

A. Musharaka

Musharaka transactions based on the ask of the parties to bring about collectively to boost the regard of assets they own jointly.

General rules: All hub projects deposit collectively to be a hub loss sharing and managed collectively. Every title-holder has the aptly of hub to participate in determining the affair policies with the intention of run by executing the project.

B. Mudharabah

Is a form of cooperation linking the 2 (two) or more parties everywhere the title-holder of the trust hub to the managers of hub (mudharib) with a profit-sharing agreement.

General rules:

Total hub is handed ended to customers as the administrator of hub, should be in cash, can be either cash or goods with the intention of otherwise its regard in units of money. If hub is increasingly handed ended, to be apparent and mutually agreed stage
Results calculated with the management of two (2) ways: 1) revenue sharing, who comes from project revenues, and 2) profit sharing, the repayment of the projects.
The Bank capital the aptly to supervise the bring about, but thumbs down aptly to interfere in the bring about / affair customers.

4. Akad Complementary

To facilitate financing actors, vital supplementary contract. Although not intended pro profit, in the supplementary agreement are allowable to ask pro replacement expenditure incurred to apply this agreement. Great replacement cost solely to cover the expenditure in fact incurred.

A. Hiwalah (rather doubtful)

The gift is ordinary to help suppliers make the cash hub in order to take up again production. The Bank expected compensation pro services conveying fee amounts.

B. Rahn (mortgage)

To produce promise refund to the Bank in as long as financing. Pawned goods should come across the following criteria: A) owned their own customers, b) Clearly the size, nature and regard, single-minded on the basis of real promote regard, c) can be controlled, but must not be used by the layer.

C. Qard

It is borrowing money.

Qard applications in banking, amongst others:

Equally a bridging credit pilgrimage, everywhere customers pilgrim was agreed a bridging credit to deposit eligible expenditure of the pilgrimage. Loans repaid previous to leaving pro Hajj.
Equally a cash credit (cash advance) from Islamic confidence license products.

D. Wakalah (representative)

Occurs as the customer authorized the Bank to speak for him involve made known the bring about of particular services, such as secretarial L / C (Letter of Credit), collection and conveying money.

E. Kafalah (Bank Garnsi)

Given with the take aim to promise the payment of a payment obligation. The Bank could require the customer to place particular funds from this gift as a rahn (mortgage), as well as the Bank could furthermore receive funds with wadiah opinion. Banks allowable to receive compensation expenditure pro services provided.