The Islamic Business Credit Policy (IBCP) is one of the major policies that is used in Islamic banks. The IBCP is an Islamic financial transaction agreement. The Islamic law states that a Muslim should not enter into any financial transaction or relationship that is not Islamic. Therefore, if you are seeking a business loan then you must ensure that the loan is halal qualified. The Islamic banking industry has introduced this policy in order to maintain the value and respect for the Islamic law.
A business loan qualified is one which is able to be paid back. The loan should be able to be repaid with interest in accordance with the rules and regulations of the Islamic law. Therefore, before getting a business loan it is advisable to conduct a comprehensive search to find out if the loan is available and also whether the lender is available to offer you the loan in terms of terms and conditions that are acceptable to you. If the loan is found to be available, the next step is to start the application process. There are two types of Islamic loans available; secured and unsecured.
Secured business loans can be applied for only if the applicant is able to provide evidence of his or her ability to pay back the money that is due. In other words, the loan must be absolutely clear and there must be no doubt on the part of the applicant about the reason for taking the loan. This means that all the documents that are required must be presented for the lender. Furthermore, the loan amount and the interest rates must be discussed in full detail. You must ensure that you understand all the details of the loan before it is applied for.
An unsecured business loan is different in many ways. Firstly, there is no requirement for documentary evidence of the ability to repay. Also, the interest rates will be a little higher. However, the most important thing about an unsecured loan is that there is no need to ask the lenders about your faith and honesty. So, whether is business loan qualified or not depends solely on your situation.
If you can prove that you have enough resources to repay the loan then you are assured of getting approved. You must remember that this is very rare and it is very rare to get approved. In fact, you can only get approved if you have good credit history. The amount that you can borrow will depend on the value of your property and the amount of equity that you can find. So, when you are trying to calculate the amount of the loan, you should include the interest that you will have to pay back.
If you are having any difficulties in paying the interest, then you can consult with your Islamic financial adviser. The Muslim financial advisers will be able to give you good advice and you can consider it when you are going to apply for a business loan. It is true that the interest rates will be a little higher, but as long as you have a strong financial institution who will be willing to lend you money, then you should be able to get a business loan that is Halal Qualified. There is no harm in asking for a little more interest, as long as it is within the allowed limits.
On the . . . . . . other hand, if you have applied for secured business loan, then you must know that the interest that you will have to pay will be a little higher than a secured business loan. This is because the lender will use the asset as security for the loan amount. So, if you fail to make your repayments on time, then he can take away the asset that is used as security. This is something that you need to keep in mind when you are going to apply for a business loan.
So, when you are going to apply for a secured business loan, make sure that you are doing it with a legitimate institution or bank. This is important so that you will be able to get the loan that is Halal Certified. So, you need to find out more about this type of loan before you apply for one.