ISLAMIC PAYDAY LOAN

ISLAMIC PAYDAY LOAN

HALAL PAYDAY LOAN ISLAMIC PAYDAY LOAN HALAL OR HARAM ?

An Islamic payday loan is by definition a small amount of cash borrowed by a Muslim with the agreement that is repaid when the halal loan applicant has received his or her next wage following Islamic finance principles.

An Islamic payday consists of a short term halal funding facility which allows any Muslim to fill the cash gap between two salaries by borrowing a bridge loan to face any urgent bill payment or other financial commitment.

Is a payday loan Halal or Haram ? The answer is quite easy, as long as the payday lender doesn‘t request any interests payment (Riba) which is Haram, a payday loan can be Sharia compliant.

The Islamic payday funding option shall respect the principle of Sharia financing which ban any interest payment, as well as speculative transactions, along with the funding of Haram goods like alcohol or funding services such gambling.

A halal payday loan will not tolerate the usury rate implementation of exaggerated interest rates that exploit the financial precarity of a Muslim borrower like it is applied by conventional payday lenders.

A halal payday loan can take an Islamic compliant form that doesn’t require any payment of interests but the sharing of profit in case the borrower has made some profitable revenues with the borrowed money.

A halal payday loan can take an Islamic compliant form that doesn’t require any payment of interests but the sharing of profit in case the borrower has made some profitable revenues with the borrowed money.

An Islamic payday loan finally can be the case when by using the Rahn principle which is equivalent to a halal pawn loan when the Muslim loan applicant deposits a good of value as collateral in order to borrow cash on halal basis.