Advantage and disadvantage of Islamic loans?

Answer 1

Advantages but not limited to:

· Islamic economy considers the lender (provider) as a participant who shares the losses and the gains

· Islamic economy does not exploit the need of the poor by taking interests which eventually makes the wealth concentrates in the hands of the rich capitalists

· Islamic economy make the people feel united and taking care of each other like one body without the exploitation of one another

· Islam encourages charity and it promises rewards on it in this life and in the hereafter

There are no disadvantages as the Islamic teachings are from God and He knows the best that befits the human nature