In Crimea appeared a first financial institution which carries out all operations exclusively under Shariat laws. Thus the credit union under the title "La Riba", based in Simferopol by the professional banker, the author of the book about credit in Islam, Yunus Ablamitov, works in full conformity with the legislation of Ukraine.
The core of Islamic bank system is the exception from all financial operations of loan interest, as usury is strictly forbidden by the Quran. To the Shariat laws contradict giving and receiving of money on interest-based credit. Any transactions connected with gaming, manufacture of pork, alcoholic production and tobacco are forbidden, too. All operations in the banking establishments working under the laws of Shariat, are carried out on the basis of division of responsibility and individual share of both parties in all profits and losses. Thus Islamic banks do not demand from the client of pledge granting.
In Crimea the first credit union observing both the legislation of Ukraine, and Shariat requirements, is the credit union "La Riba" which was based in Simferopol by Yunus Ablamitov, the professional banker, the author of the book about credit in Islam.
"The essence of financial relations in Islamic way are such relations in which the owner of the monetary capital and the businessman act as partners equal in rights, dividing both profit on the enterprise, and possible risk, – he stated in the interview to the Crimean-Tatar newspaper "Avdet". – Therefore, the Islamic bank is cardinally interested in effective work of the borrower while the usual bank is interested only in return of credits and reception of interest due to it at any cost".
According to Ablamitov, the name of the credit union speaks for itself: "La Riba" in a translation from Arabic is "No interest".
"We are not a charitable organization, – he noted. – We in the same way take money and give them. The only thing that distinguishes us from other financial institutions of Ukraine – we try to observe Shariat laws".
As Ablamitov told, his credit union works by an individual share principle in business. The profit received from borrowers, shares with those whose money was used in business proportionally to their share.
Clients of "La Riba", and those for today are already more than 300, are people who are engaged, basically, in small business – farmers, taxi drivers, owners of shops, bakeries, hairdresser's.
Thus one of the most important conditions for participation in this business, according to the chairman of the board of the credit union, is the conclusion of the contract on joint activity.
Especially for the work with clients Ablamitov developed the computer program which helps members of the union to make small business project for work and to calculate profitability of the future enterprise.
"In other financial institutions the interest is set for the whole amount of loan that it is not important, if you got profit on a loan or not, you are obliged to pay a certain share to bank monthly. In the case of "La Riba" between the businessman and the borrower only profit is shared", Ablamitov explained.
As he said, if the profit makes 50 percent, the borrower gives to the union 25 percent and the left 25 percent he leaves for himself. Thus a maximum that "La Riba" can take is 350 grivnas from 10 000 grivnas of investments per month.
"There are gossips that we dissemble, and our organization is the same bank having a different name, – Ablamitov noticed. – But we accurately trace profitability of business of the borrower that the person would not give us everything he earned, but only a part from our investments". But there are also no problems with repayment of investments. "Surely, delays happen, there are no "dead" money!" - Ablamitov assured.
He noticed that the analysis and joint planning of the future business allow giving out money even to those who were refused by other banks.
As a rule, those beginning business frequently have no items of loan repayment, which is pledge. "But in our practice we are convinced, that exactly such people return credits better, – the head of "La Riba" stated. – Poor pays the credit better because his motivation is much more strong – he strives to get out from poverty and debts, and he does not wish to spoil relations with the unique bank which believed in him".
The Islamic credit union gives money only on development of small and midget business where profitability is the highest and sometimes surpasses 100 %.
"All the rest – for example, delivery of the credit for construction of the house or goods purchase, is "haram", that is unlawful from the point of view of Islam", Ablamitov emphasized.
Thus, as he said, among the members of the credit union – are far not only Muslims, but also Christians and Jews. Membership is only refused to atheists.
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