Almost all banks have recently adjusted some loan interest rates and provided several reductions in loan interest rates . When this was the case, many bank customers applied to the branches of their banks to use loans . Although the number of applications has increased with these campaigns, there is such a large mass that is afraid of loans and does not accept bank loans. Mostly for religious reasons, interest in our religion with the forbidden situation of individuals forbidden to use bank loans. In this case, Participation Banks are faced with individuals. Interest-free Lending Banks can be shown as an example. What are the interest-free lending banks? Do Participation Banks Grant Credit?
Through the system called Profit Share, Participation Banks are able to offer term and interest free credit to their customers through profit share.
If you are not familiar with the Participation Bank, what is the Participation Bank? and learn how Participation Banks work.
Dividend is the sharing of the profit margin between the business owners by collecting the expenses and losses of an enterprise and decreasing it from the total turnover.
What is Interest?
Interest is the amount of income that the institutions providing services in the finance and banking sector put on the recycling of the loans given to their customers.
What is Interest-Free Loan? Who Gives Interest-Free Credit?
The main purpose of this article is the Credit System , which is offered by the Participation Banks and normal banks to its customers. Participation Banks can lend to their customers by applying interest-free, dividend transactions. On the other hand, normal banks may not demand interest from the consumer or commercial loans they use. Banks can offer in-house or state-sponsored campaigns at various times.
If normal banks provide interest-free loans , they will request this loan back in a short time. This means that your loan will have a very low maturity and your monthly solvency should be slightly higher. Otherwise, as with all loans , the interest rate of the loan will increase and increase at the same rate as this maturity period increases. At the same time , some companies operating in the automotive sector outside the banks can provide interest-free loans to the customers with the subsidiaries they have established. For example, £ 30,000 £ 30,000 down payment by car about to buy next ‘can be like you have the possibility to use zero-interest loans.
Loans given by participation banks
The other type of non-interest loans is the loans given by participation banks. Participation in the profit share application of banks is made without considering the profit and loss status of this business. Any change in the income of that business will not result in a decrease in the money you invest in this bank.