Difference between Islamic finance and conventional finance?

Answer 1

Conventional Accounting:

• Based upon modern commercial law-permissive rather than ethical
• Limited disclosure (provision of information subject to public interest)
• Personal accountability (focus on individuals who control resources)

Islamic Accounting:

• Based upon ethical law originating in the Qur'an (Islamic law, As-Sunnah)
• Full disclosure (to satisfy any reasonable demand for information in accordance with the Shari'a)
• Public accountability (focus on the community who participate in exploiting resources

Answer 2

Islamic finance is the following

Charitable loans or partnership ( investor partners with borrower in capital venture)

Charitable loan means there is no interests (usury) or profits on loans. Lender can't profit from a shade of a tree while collecting his/her depts. This means the lender can't benefit anything from what they lend. Whatever the lenders lend the lender gets back the same of what they lend . The pay back must be of the same thing of what the person borrows. For example: If a person borrows 100 dollars, then he/she should return 100 dollars. If he/she borrows 100 lb of rice, then he/she should return 100 lb of rice, and so on. Borrowers can pay extra loan service fees, Example. lender and a borrower want to document their loan or contract, they have to pay notary public fees, or register the loan in the city for records, then it's the obligation of the borrower to pay this cost of the recording unless the lender agrees otherwise. To supply the market with interest free loans. The government should print enough money to supply the market for the borrower's needs. The Government is none profitable organization and it has no right to benefit from the people but to serve the people. It gives people money to use it then it will take it back. The government can charge loan service fees to handle the collection fees, documentation, and processing to pay its cost of servicing the borrowers.

The second form is partnership

If investors want to make profits on their money, they have to go into partnership or venture with the person who needs money for example. a person needs to borrow money to plant and harvest a farm the investor can go with the farmer in form of partnership and each agrees to certain percentage form the profits. The investors can't require a preset fixed return as 5% 6% or any percentage, but they have to take the risk as if the harvest get ruined for any reason and they lost it and there was no profits the lender should carry the risk and take the loses and if the harvest came out to be triple of what the investor expected then the investor takes a bigger share of the profits. Investors has to share in ventures on whatever they want to finance and share the loses and profits. There is no borrower in this case an no loans should be involved.

At the present time Islamic finance hardly exist anywhere in the world. Most of the companies who claim that they are Islamic financing companies they are real conventional financing companies or banks. They deal with interests (usury) their money is from conventional lenders, the profit goes back to conventional lenders. These fake financing companies change

Beware: Not all financing companies in the market are real Islamic. Most of them scammers. they give loans, charge interests, and they make profits on loans. They are scammers.

Answer 3

The main feature is what happens to the money from the premiums. Interest is haram, so investment of the premiums must not involve any profit from interest payment, or involvement in any haram product/process, such as alcohol/brewing, or pig farming. Investment in general industry is positively encouraged as it is helping others to make a living and any profit is from hard work and margins, not interest.

Answer 4

conventional is changement in socity which is brought by people buy Islamic financing is a facism base.which depend on only cast.

Answer 5

Religion