Used for Financing Activities:
1. Does it look like conventional model?
2. Is it a model that uses interest as a foundation for its calculations?
3. Is it a model that uses the word "profit" or "rent"
instead of "interest’? Many models do that.
4. Ask if the person (s) making Shari’aa rulings are employed
and paid by the finance company for their services.
Remember that paying or receiving interest, regardless what they
call it, is not allowed in the LaRiba Islamic Banking & Finance
Who are Those Behind the Institution?
1. Are they involved in the community?
2. Do they have a record of accomplishment in community service?
3. Are they committed to your values?
4. Are they experienced in financing, investing and business?
5. Do they have a vision? What is that vision?
6. What is the institution’s experience?
7. How do their customers rate them? Does the institution offer
8. Who provides capital to institution?
9. Are funds from legitimate sources?
10. What happens to your property if the institution ceases to
do business for any reason?
11. Do the investment returns come back to the community.
Is the Institution Socially Responsible?
1. Does the institution use intensive marketing concepts’
using religious slogans to justify its operations?
2. Does the Institution Put their competition down and fiercely
tries to take business away without regards to proper Islamic
ethics and rules on competition and misrepresentation
3. What is the cost of financing and what is the expected return
4. Are they competitive?
5. Does institution speculate & trade in stock markets?