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afghanmoose's avatar

I am having trouble with a loan,can anyone help?

Asked by afghanmoose (554 points ) June 6th, 2009

i am trying to purchase an item, but without loans since i am a Muslim, so is there a way for me to obtain a load with out interest or get a credit card with out interest? my purchase would be $3500 US dollars.,i live in USA by the way.

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37 Answers

basp's avatar

A loan or credit card without interest????
Don’t think you are going to have much luck with that no matter what religion you are.

Response moderated
Darwin's avatar

Sounds to me as if you need to set up a savings account, gradually save up $3500 in it, and then use a debit card based on the account.

Either that or you need to find a sugar daddy or sugar mama (depending on your sex and your preferences) to give you a gift.

Response moderated
filmfann's avatar

I own a home, have a good job, am a Christian white male, and there is no way I could get that loan!

Response moderated
PandoraBoxx's avatar

Several of the car dealships have had financing options that are 0% interest. Mitsubishi is one of them. They were offering 60 months at 0% on a Mitsubishi Galant.

2009 Galant
0.0% APR for 60 months (60 monthly payments of $16.67 per $1,000 financed at 0.0% APR) Available through Mitsubishi Motors Credit of America, subject to approved credit and insurance. Some customers will not qualify. Retailer price, terms and vehicle availability may vary. See your Mitsubishi retailer for details. Factory cash rebates are not available with APR offers. Program ends 06/30/09.

The_Compassionate_Heretic's avatar

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... removed after some research

Darwin's avatar

Actually, if you are serious, check out this site for some innovative Islamic loan programs.

The_Compassionate_Heretic's avatar

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Here’s some information for those who might not know about usury as it pertains to Islam

Usury in Islam

The criticism of usury in Islam was well established during the Prophet Mohammed’s life and reinforced by various of his teachings in the Holy Quran dating back to around 600 AD. The original word used for usury in this text was riba which literally means “excess or addition”. This was accepted to refer directly to interest on loans so that, according to Islamic economists Choudhury and Malik (1992), by the time of Caliph Ulmar, the prohibition of interest was a well established working principle integrated into the Islamic economic system. It is not true that this interpretation of usury has been universally accepted or applied in the Islamic world. Indeed, a school of Islamic thought which emerged in the 19th Century, led by Sir Sayyed, still argues for a interpretative differentiation between usury, which it is claimed refers to consumptional lending, and interest which they say refers to lending for commercial investment (Ahmed, 1958). Nevertheless, there does seem to be evidence in modern times for what Choudhury and Malik describe as “a gradual evolution of the institutions of interest-free financial enterprises across the world” (1992: 104). They cite, for instance, the current existence of financial institutions in Iran, Pakistan and Saudi Arabia, the Dar-al-Mal-al-Islami in Geneva and Islamic trust companies in North America. This growing practice of Islamic banking will be discussed more fully in a later section as a modern application of usury prohibition.

http://www.alastairmcintosh.com/articles/1998_usury.htm

chyna's avatar

@PandoraBoxx Was he wanting the money for a car? I didn’t get that by reading his post.

afghanmoose's avatar

i am buying a motorcycle from a private dealer but need the money upfront,so i can pay through paypall,but i need to find out if i can get a loan or a credit card without interest,and i’ve searched google for islamic banks in new jersey and credit cards but no luck.

hungryhungryhortence's avatar

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Family and friends aside, have you looked into any Islamic outreach in your vicinity?

walterallenhaxton's avatar

Cars are commonalty sold without interest. I have also seen stores do so too. Have you tried a muslim bank. Will they finance in the United States. The road block you are running into is that you want something for nothing. In a country where you bargan for prices the seller know that you want credit and includes it in the price. I am certain that they give cash discounts there. Here it is different. It has the same result though. If you want credit then you pay for it. In one country the price is hidden from you and in the other it is out in the open.
What ever else you do you can’t avoid the problem that the other guy has uses for his money and lending it to you for nothing is very low on his list of things to do.
Only the vendor of the product that you wish to buy will give you an interest free loan. He is making his money on the sale.
Have you tried the rent to own places. They might have what you need.

walterallenhaxton's avatar

Advertise the amount of money you have on Crags list. You don’t have to say all of it just the amount you want to spend and that you want a motorcycle. There is no telling what kind of deal you will find that way. You might just get more motorcycle than you expect.

walterallenhaxton's avatar

I am just brainstorming the idea.

walterallenhaxton's avatar

I had to do away with the page style to view this. It looks very different that way.

YARNLADY's avatar

There are many ways of paying money back without paying interest. You could offer someone a reward for loaning you the money. The payments would be divided into a monthly amount you can afford, and the first five or so payments would be the reward for loaning you the money, and the rest of the payment then would be to pay back the laon. That’s how they do it in my neighborhood.

If you could find a person who would buy the bike for you, and you could then rent it from him, until the rent payments add up to the cost of the bike. That’s the way Muslims buy houses. Every month part of the payment is rent, and part of the payment is for the house payment, until the house is paid off.

Vincentt's avatar

In the Netherlands we have special Muslim banks which allow you to work around this issue. This Google search should help.

However, I’m not sure if I were a Muslim that I’d be fine with this. It sounds like bending the “rules”. If you really feel there’s a reason for not being allowed to pay interest (apart from it “being the rule”) I don’t think this would be any better. But it’s your choice of course :)

dynamicduo's avatar

No credit card will give you zero interest, especially not in today’s economy. You will have better luck, and gain more knowledge that will help you, by talking with other Muslims who have dealt with your situation in your area, or some Islamic centre, et cetera. Basically, find someone in your area who has dealt with this problem and resolved it, and learn from them.

DarkScribe's avatar

Many cards companies here, including Visa, are offering zero interest for twelve months or more for new accounts. If you repaid the loan in under twelve months that would be effectively interest free. You could also start a Visa debit card account, that is attached to your existing savings and has no interest. That is accepted by PayPal – it is what I use for on-line transaction to avoid the risk of having my credit card details end up in a scammer’s hands.

afghanmoose's avatar

thanks vincentt,but i called all the muslim banks and they all said that they do morgages for homes, no micro loans

walterallenhaxton's avatar

@afghanmoose Are you saying that you have no money at all to buy anything?
If you have any money this might get you to the point where you have more money. I am sure that you will be able to sell it for something then.
http://www.northerntool.com/webapp/wcs/stores/servlet/product_6970_200321339_200321339

afghanmoose's avatar

I put down $500,i need $3500 before mid august for the bike,and its hard to find non interest ways these days

Darwin's avatar

Can any family members help you?

YARNLADY's avatar

@DarkScribe The zero percent credit cards you are describing are usually only available to people who have an exceptional credit rating, based on past records. We alternate our credit purchases among the different offers we receive in the mail every other month. I have bought items on the 0% for 12 months plan and not paid for them for as much as three years later.

walterallenhaxton's avatar

@afghanmoose Now you will have to break a contract. Which is worse in Islam? Breaking a contract or paying interest? You are trying to buy a piece of property that you can not afford. How much can you come up with a month. Maybe the dealer will do layaway? You pay what you can each month and he keeps the bike until it is paid for.

These people do finance motorcycles in the way you want yours financed. I do not know if the lend in the USA. You will have to find that out for yourself.
http://www.alislami.ae/en/personalbanking_Ijarahservices.htm

afghanmoose's avatar

Family memers are cheap and offer false hopes when it comes to loans

Darwin's avatar

Perhaps you need to get your down payment back, and wait to buy a motorcycle until you actually have the money, then.

afghanmoose's avatar

thanks darwin,sadly the guy is a douche and says that if something happens and i back out,then he keeps the money and vice versa, but we did not specify on the contract when the rest of the money will be given,only at the time of delivery of the bike,so far i have some money saved,but not nearly 3500 so yea,bummer.

walterallenhaxton's avatar

Islamic lending is identical to APR interest. It is just a different way of doing exactly the same thing. If the loan is 1000$ and the APR is 20% for a year then the payments are 100$ a month. If you buy the product under sharia law you pay 1200 for it and the payments are 100$ a month. Why do you think that there is any difference?

afghanmoose's avatar

well sad news everyone,i got my down payment back and no bike:(

afghanmoose's avatar

I’ll never get a good deal like that again

Darwin's avatar

@afghanmoose – Maybe you won’t, or maybe you’ll get an even better deal, one you can pay for up front since you now have the beginnings of a savings account.

It is always wise to save 10% of your take home pay for just such occasions, and even wiser to have at least 6 months of living expenses in savings in case you lose your job or some other catastrophe happens.

As some people would say, “It wasn’t meant to be.”

walterallenhaxton's avatar

@afghanmoose Not sad for you at all. That is better than you could count on so you are better off. You do know how to hitch hike.
http://stlouis.craigslist.org/mcy/1170917978.html

YARNLADY's avatar

That sounds like good news to me. Now take the amount of money you would have made on payments, put it in a savings account, and when you have evnough, go out and look around. You’ll find an even better deal, I guarantee you. Because of the economic downturn, there are deals everywhere now.

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