The study of contemporary issues LESSON 4 | Abu Fajr

0:0:58 - Are resolutions of Fatwa committees considered Ijmā’? 0:02:53 - Some Fatwa Committees may include dodgy members with a negative influence 0:5:32 - 4th discussion: Buying a car through financing (تمويل) 0:12:25 - How car financing works 0:13:35 - Al-Lajnah Ad-da'imah issued a Fatwa declaring finance contracts involving fixed APR% rates to be Haram! 0:14:12 - APR: Annual percentage rate (factors in admin fees, etc.) - The quicker payment is completed, the less the overall price - The longer taken to complete payments, the greater the overall price 0:16:43 - Difference between Fixed/Flat rates vs. variable interest rates (APR). * fixed rates don't change * APR fluctuates 0:18:27 - Are both interest rates impermissible? YES! 0:58:00 - Variable interest rates is worse because it carries more ambiguity, but both are impermissible! 0:19:00 - Riba An-Nasee'ah (aka Riba Ad-Duyoon) 0:19:58 - Installment purchases vs. loans 0:27:50 - Installment plans are permissible according to most scholars - so long as the contract (price & contract date) is agreed beforehand, and no 3rd party financer! ٠ Sh. Albani & Sh. Muqbil said it's impermissible because the Prophet ﷺ prohibited 2 sales in one contract (بيعتان في بيعة) 0:21:40 - Dar ifta misriyyah said financing is a type of muraabaha contract and so they said it is permissible * Very dodgy Fatwa! 0:22:50 - Three types of bank loans i. A loan is given in return for a greater repayment amount = (Haraam) ii. The bank acts as a middleman for customer by purchasing the commodity and selling it back to customer for a higher price with an installment plan [AKA Hired Purchase (HP)] = Some said this is permissible iii. Investment between the bank and different organisations and individuals 0:26:30 - It is permissible to introduce new types of business contracts as long as there's no Gharar (ambiguity) or Ḍharar (harm) 0:27:10 - Is financing Muraabah (an investment contract) or a loan (تمويل)?