Free opinion: The roots and principles of Islamic finance are as old as Islam itself. In fact, for centuries Fiqh al-Moamalat has provided an organizing framework for the financial and commercial transactions of Muslims on the basis of transparency, morality, justice, equity and social responsibility.
However, it was not until the end of the twentieth century that the Islamic financial system developed sufficiently to be considered a distinct modern model that allows Muslims (and non-Muslims) to engage in financial activities consistent with the universal concepts and values of just Islam. in economic activities.
Moreover, this economics has historically succeeded because it unified within a scientific framework the ethical principles of social behavior in Islam in justice, equity, and solidarity with the scientific principles of efficiency. Competitiveness and innovation. In its own distribution system, which combines redistribution of income (zakat and takaful) and redistribution of capital (inheritance, endowment and other donations).
In this reasoning, the offer of the Islamic bank is specified in the product and service, it does not apply, nor the date of the value, nor the interest etc. Among its social assistance tools Hassan loan.
Qard Al Hassan (interest-free financing)
Qard Hasan: A financing of a social nature, at the end of which the Islamic financial intuition does not apply interest or a margin to the beneficiary. No reward or benefit. The only obligation of the customer is to repay on maturity, the amount of capital that has been loaned against the real value of the bank’s service. In addition, all loans in (Islamic Finance) is not relevant. Moreover, all monotheistic religions forbid interest. A good loan is one that is offered to the needy without compensation.
Indeed, based on these principles, Islamic finance today remains an essential weapon in the fight against poverty and instability, and its principles and tools are suitable for strengthening solidarity and mutual assistance in the field of charitable work. In short, it is a natural and free help recommended in Islamic finance offered by Islamic banks and Islamic microfinance to help the needy to overcome their financial difficulties temporarily to face their problems they face in their economic life.
Therefore, some scholars consider it a form of interest-free loan which the lender offers to the borrower on the basis of benevolence. Given its strength, it is imperative that Islamic finance adapt today with alternative tools to better orient our ecosystem of economies and re-adapt it to the needs of the population to reduce poverty and poverty in our country.
Terms of compliance with the principles of Islamic finance
– That the sources of the good loan funds be legitimate with what he uses.
The beneficiary must have legal capacity.
– it is a credit contract, in which the money is transferred to the goodwill of the beneficiary, and the bank can ask for a guarantee;
– the termination of the contract either with the consent of the contracting parties, and the expiry of the term;
Taking the surety when necessary in case of abuse, negligence or breach of the condition of the good loan contract.
God Almighty said in the Qur’an: Those who eat interest rise only when he who is overwhelmed by the touch of Satan rises. This is because they say: Nothing but trade is like interest! As God had made trade lawful and interest unlawful.
Qard Hasan allows the customer to get cash;
Obtaining financing without interest or bonuses;
Obtaining Sharia-compliant financing.
Socially responsible financing.
In general, Islamic finance has set ethical and moral standards, to defend integrity, justice, share risk and promote mutual aid and the well-being of the entire society. It also encourages honesty, trust and social justice. It is these universal African Islamic values that have been the strength of this participatory funding. Islamic finance uses these values tirelessly in its management in terms of offering and services that guarantee its qualities. Therefore, these values should be the strengths of Islamic financial institutions.
Islamic finance advisor
Deputy Secretary General of the Guinean Association for the Advancement of Islamic Finance (AGFI)
email : [email protected]