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The Capitalist way
You will have to pay back the
loan and the interest charged on it
until it is paid off.
This can amount to over £250,000
over
25 years.
That is you have to pay £10,000
per year for 25 years.
Notice how much of your wealth
the
bank devours in interest.
Two hundred thousand pounds!!!
for borrowing fifty thousand
pounds.
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The Islamic Way
Islamic bank will lend you £50,000
to buy your home.
Suppose you decide that you
want to pay off the loan at £5,000 per year.
This will take 10 years to clear
your principal sum.
The bank then obtains a market
value of your house.
Let's say it's value has appreciated
to £60,000.
Since the bank lent you 100%
of the money they have a share in this profit.
This means you can comfortably
pay-off your loan
in 12 years instead of 25 years
or reduce the percentage share of the bank in your home.
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Dis-Advantage of Capitalism
If you fall ill or lose your
job ,
you still have to keep up the
repayment at £10,000 per annum.
If you go into arrears you risk
Reposession and the loss of your home.
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Benefits of Islamic System
If you fall ill or lose your
job the time of the loan is extended by the bank, but so does the appreciation
value of your home.
The bank does not lose profit
because their function is to lend, nor are you forced out of your home
for repossesion.
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The total sum you pay is £250,000
that is four times more than the loan.
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The total sum you pay is £60,000
that is much less than the loan.
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This is CRIMINAL but the banks
are
getting away with it because
like you
everyone thinks that it is the
only way to borrow money.
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You have spent twelve years
of your life owning a
home and now you can afford
to help your children,
relatives and the needy to improve
their lives.
This is the Islamic principle.
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