For example; did you ever buy banana for $2.00 and sold it to you for $50.00 then you ask someone to buy it for $55.00 and when someone asks you why $55.00 for $2.00 worth banana, then you reply you bought it for $50.00 and when someone asks you where did you buy it for $50.00 and you answer "I bought it from me".Is this whole process can be named as a trade? We have asked this question to 50 people and most of them called it a stupid joke and none of them called this a trade.

Now , let us see how the Islamic or Sharia loan or call it Murabaha ijara works. Since Trade is permitted in Islam and Interest is forbidden , The Islamic bank has introduced a system called Murabaha ijara(islamic loan or sharia loan)any loan is considered as commodity to trade. For example if you need a loan to buy home, the Islamic bank will buy it for you and you buy the shares and more shares you buy the less payment you make and bank keeps the house under bank's name not under your name and you make the payments as per the rent of the house is established. In other word Islamic bank buys the home you like and sell it to you but keep the home under banks name. On the other hand you cannot rent the part of the house, and face the gain and loss as you are doing business jointly, but surprisingly all the Islamic banks declare big profits every quarterly and no bank has been gone bankrupt so far. Before I proceed further on this subject, let me give you just one example. I talked to one Islamic bank to provide me the loan since I did not have any money. Bank simply rejected my application on the basis of I did not have any money to buy shares or any security. I discussed this matter with a friend of mine who is a non-muslim. He asked me how much money I needed to buy the home. I was surprised this non-muslim friend of mine did not ask me any question and gave me $20,000 to buy home and also said to me Shah sahib when ever you are comfortable then pay and do not pay me even one cent more . I bought the home. Next week there was another muslim fellow, also friend of his. He came to this non-muslim fellow and asked him some personal loan because he was facing some hardship. In front of my eyes, this non-muslim, told his wife to write a cheque what ever the money muslim brother wanted without asking any question. Of course with no interest and no security at all. Do you think any Islamic bank would give you the loan on this pure Islamic guide line which a non-moslim was practicing . Of course not , No Islamic bank would do this at all, because they want to make money. These above examples were straight forward and truly upon Islamic concept. But Islamic banks want to make money so they modify the Qura'anic verses to create and switch loan to commodity to give it a name of trade. Shame, real shame. Even if you need a personal loan of $10,000, bank will create a third fake person to buy this $10,000 for $12,000 and sell it to you for $12,000 with all the securities .My dear bank, I do not want to get involve in a trade I simply want a loan, thats it, nothing else. If the Islamic bank does not want to commit fraud and modify the Qura'anic verses then they should simply adopt the method the Holy Qura'an has described about the loan only and do not mix it up with a commodity, leave the loan and trade separate from each other. HOLY QURA'AN DOES NOT ALLOW YOU TO CONVERT LOAN INTO TRADE TO GAIN ANY BENEFIT Any one needs loan, give him without any security and any intention to get more.But Islamic bank won't do it and probably they will call it stupidity.Well then what ever they are doing in the name of loan is simply falling under the category of fraud with Islam. Thats why 36 American states has adopted sharia loan or islamic loan policies because it is more advantageous and lucrative then the mortgages.........Mortgage is also not halal if there is any interest charged, it is against Islam yet better than the Islamic modified trade name of murahaba ijra(in the opinion of 87 muslims out of 100 based on the telephonic survey conducted in the month of Ramadan, 1429(2008).....
What you gonna do with the money earned as an interest on your deposit. If your faith and belief is strong then donate this money to poor or orphan and beg Allah subhana ta'ala for forgiveness.
Loan is actually a need in tough time, so if you get the loan on interest or profit or secured , it means worst is coming next...the only interest free loan, you may be able to get from family or friends and not from these greedy Islamic so called financial institutions....continued........continued
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