Our Latest Customer Queries
Is it permissible to use the word “interest” in Shariah contracts?
We do not use the word “interest” in any of our agreements
Our finance agreements and all documents have all been reviewed by world class Shariah scholars who ensure that:
(a) the economic substance of an arrangement is Shariah compliant; and
(b) the form is also consistent with Shariah. This means we do not accept any written reference to Riba concepts such as “interest” in our finance agreements and/or other documents.
The existence of the word “interest” would create uncertainty in the understanding of the parties and the transaction would become objectionable to the Shariah.
We will never deliberately make you sign an agreement or send you correspondence with any reference to the word “interest”.
This is something we take very seriously and we are happy to commit our promise in writing.
Australian credit laws and use of the word interest
The compulsory use of the word “interest” used to be part of Australian credit laws, but that has since been amended. There is, therefore, no justification for its use in a Shariah compliant finance arrangement in Australia.
What documents do I need?
- For PAYG applicants 2 recent payslips AND 2 Years PAYG summaries (2015 and 2016)
- For Self-employed applicants Individual Tax Returns and Notice of Assessments for 2015 and 2016
- 100 Points of I.D for all applicants (Passport and Driver’s license are sufficient)
- Latest credit card statements and / or any other loan or debt statements
- Latest bank statement showing funds to contribute towards purchase of a property and stamp duties