26/01/2016 · How Does An Islamic Personal Loan Work? Personal loans from Islamic banks in Malaysia are based by utilising the concept of Bai’ Al-‘Inah It is a concept widely used by Islamic financial institutions for ‘personal financing’ which is a commonly used term in Islamic banking instead of the term ‘personal loan’ as per conventional Islamic personal loans work? Islamic personal loans generally require some form of collateral such as services, home, car, or something like that. Of course, all this depends on whether a client meets the eligibility criteria. Then, the bank provides the loan and buys products or services directly from the provider and resells it to the client at an agreed profit rate, as mentioned ;· Instead of thriving off of interest rates, Islamic banks use their customers’ money to acquire assets such as property or businesses and profit when the loan is successfully repaid. All Islamic fi

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