Guidance and Amanah Finance. Followup Questions
Posted: 2 Rajab 1424, 30 August 2003
|Q.) Is it permissible to use interest rate as a benchmark for pricing a permissible contract? Have you approved Amanah Home Finance scheme?|
A.) (1) I have already mentioned that I have approved the scheme of Guidance after vetting all their documents. It is not possible for me to explain to every individual the reasons for each and every clause of the documents. However, if someone finds a clause in clash with Islamic principles, he can copy that particular clause and send it to me along with his objection.
(2) The issue of using interest-rate as a benchmark for pricing a permissible contract has been fully discussed in my book "Islamic Finance" in the chapter of Murabaha. Those interested may consult it.
(3) I am not in favor of posting my Fatwas about particular Institution on Websites. This may give an impression of marketing their products and defending them which I wish to avoid. Those who may rely on me, it should be enough for them that I have approved the Scheme after studying the documents thoroughly.
(4) I have also approved the HSBC Amanah Home Finance Scheme both in US and UK.
An Introduction to Islamic Finance