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Islamic Banks make a profit by buying and selling at a profit. for ex: If you want to buy a car, a regular bank will give you a car loan and you will use that money to buy a car. You will repay the money as monthly installments along with interest, to the bank. An Islamic Bank will buy the car and then sell it to you for a higher price thereby making a profit.
Midland Chemical Co. is negotiating a loan from Manhattan Bank and Trust. The small chemical company needs to borrow $500,000. The bank offers a rate of 8¼ percent with a 20 percent compensating balance requirement, or as an alternative, 9¾ percent with additional fees of $5,500 to cover servicesthe bank is providing. In either case the rate on the loan is floating (changes as the prime interest rate changes), and the loan would be for one year.
What is the difference between bank loan and bank credit?
A bank loan is an asset for the bank as bank receives interest and principle payments from borrower.
bank a/c dr to bank loan a/c
how to get a loan to your bank if my bank now is not DIB
Islamic banks profit differs from most other countries. It is illegal for an Islamic bank to charge interest on a loan. A loan can only be for the value of the item. The person receiving the loan however, will pay an extra amount which is considered a gratuity.
Finance amounts up to aed 500,000 highly competitive profit rates flexible repayment up to 60 months salary transfer not mandatory financing available for comprehensive islamic vehicle insurance easy processing and documentation free emirates islamic current account are some of the auto loan features of emirates islamic bank.
There are a number of Islamic Banks in the UAE that follow Sharia Compliant and provide good investment and loan banking options such as Emirates Islamic. You could check it out.
Islamic Banks make a profit by buying and selling at a profit. for ex: If you want to buy a car, a regular bank will give you a car loan and you will use that money to buy a car. You will repay the money as monthly installments along with interest, to the bank. An Islamic Bank will buy the car and then sell it to you for a higher price thereby making a profit.
Midland Chemical Co. is negotiating a loan from Manhattan Bank and Trust. The small chemical company needs to borrow $500,000. The bank offers a rate of 8¼ percent with a 20 percent compensating balance requirement, or as an alternative, 9¾ percent with additional fees of $5,500 to cover servicesthe bank is providing. In either case the rate on the loan is floating (changes as the prime interest rate changes), and the loan would be for one year.
bank loan
1. [Debit] Building 40 million [Credit] Cash 10 million [Credit] bank loan 30 million
when a loan is been transfered fron bank to another. . .the bank which the loan is transfered to board the loan. .
What is the difference between bank loan and bank credit?
A bank loan is an asset for the bank as bank receives interest and principle payments from borrower.
bank a/c dr to bank loan a/c