Calculating the cost of lending, a study in the experience of Malaysian banks

Saleh, Abdulmajid Obaid Hasan and Tahani Ali Hakami, Tahani Ali Hakami (2023) Calculating the cost of lending, a study in the experience of Malaysian banks. International Journal of Professional Business Review. ISSN 2525-3654 (In Press)

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Abstract

The condition of the loan from the Islamic perspective is to return the principle of the loan with equal in quality and amount. Therefore, the scholars have agreed that it is forbidden to stipulate an increase in the loan allowance to the lender, and this increases considered as usury, (Al-Mughni 4/240) and whether the increase is in the attribute, for example (such as requiring the borrower to return better than what he took), or in kind, (for example if he borrows money, he is required to return it with a gift (or a benefit) that he borrows money and he is required to return it with the condition that the borrower must work with the lender for a certain period). Loan interest, which is classified as one of the interest of ignorance, (Al-Omrani: the benefit in the loan). The consent among the huge majority of the jurists was the prohibition of increasing the loan allowance as it’s considered as usury. The verses in prohibiting usury are many, including:

Item Type:	Article (Journal)
Additional Information:	8728/101603
Uncontrolled Keywords:	Actual Cost, Lending Services, Islamic Banks, Compensation
Subjects:	BPH Islamic Economics > BP202.44 (al-Ijarah thumma ‘al-bay’ (Hire Purchase)- Renting/Hiring/Leasing Followed By Sale BPH Islamic Economics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Abdulmajid Obaid Hasan Saleh
Date Deposited:	02 Dec 2022 10:38
Last Modified:	02 Dec 2022 14:56
URI:	http://irep.iium.edu.my/id/eprint/101603

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