Extending help to struggling Muslims, an Australian Islamic association is offering new scheme of interest-free loans to low-income Muslims for the purchase of essential household goods and services according to the Islamic Shariah.
"I needed the money to buy couches for my home," Ali Alyassiry, a Dandenong postgraduate student, told the Herald Sun on Monday, June 27. (source)
The father of two did not face much trouble to receive a small loan of $1000 to purchase the new couches.
Within two weeks of his interview, he received the approval decision about his No Interest Loan Scheme (NILS) application.
Offered by the Islamic Council of Victoria, NILS is a 'benevolent loan' where the borrower is only required to repay the amount borrowed.
Accordingly, NILS offers small, interest-free loans of up to $1000 to people on low incomes for the purchase of essential household goods and services.
“There are absolutely no fees, service charges or any other costs for the borrower,” the council’s website says.
The council provides the no-interest loans through a service developed by the Good Shepherd Youth and Family Service.
Islam forbids Muslims from receiving or paying interest on loans.
Islamic banks and finance institutions cannot receive or provide funds for anything involving alcohol, gambling, pornography, tobacco, weapons or pork.
Struggling Muslims
Intended for the struggling Muslims, the new scheme was urged to cover the growing need for Halal loans in the Islamic community.
"There are many international students, refugees and unemployed people due to their education not being recognized here,” Project officer Asma Siddiq said.
Siddiq noted that loans were for people who struggled to afford things like household appliances, car repairs and education costs.
La Trobe University, which runs an Islamic banking and finance course, trains volunteers for the no-interest loan scheme.
It is the first university in Australia to offer education focused on Islamic banking and finance online.
Muslims, who have been in Australia for more than 200 years, make up 1.7 percent of its 20-million population.
Islam is the country's second largest religion after Christianity.
There are no Islamic banks incorporated in Australia.
The country launched its first Shariah-compliant real estate fund in 2009 in Bahrain with the aim of luring Muslim investors looking for opportunities in alternative investments and in new markets.
Currently, Australia is planning to change laws to ensure Islamic finance products are taxed fairly as the government seeks to attract investors from the Middle East and Asia, paving the way for sukuk sales.
Source : http://www.halaljournal.com/article/5912/australia:-interest-free-loans-for-aussie-muslims - July 1, 2011
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