Islamic Bank is a financial institution that is committed to complying with all principles of Shariah at all levels of objectives, principles and operations and is committed to zero interest at all stages of transactions.

• Interest free (Riba)
• Free of uncertainty (Gharar)
• Gambling free (Maysir)
• Businesses and transactions not permitted by Shariah are exempted.

"Sharia" is the set of rules derived from the Holy Quran and Sunnah to govern all aspects of human life.

Buying and selling goods in exchange for money is called business. Business can have both profit and loss.

• Surah Baqarah, verse 275
  • “Those who consume interest will stand ˹on Judgment Day˺ like those driven to madness by Satan’s touch. That is because they say, “Trade is no different than interest.” But Allah has permitted trading and forbidden interest. Whoever refrains—after having received warning from their Lord—may keep their previous gains, and their case is left to Allah. As for those who persist, it is they who will be the residents of the Fire. They will be there forever.”
• Surah Noor, verse 37
  • “Men whom neither trade nor sale diverts them from the Remembrance of Allah (with heart and tongue), nor from performing As-Salat (Iqamat-as-Salat), nor from giving the Zakat. They fear a Day when hearts and eyes will be overturned (from the horror of the torment of the Day of Resurrection).”
• Surah Jumu'ah, verse 10
  • “But when the Prayer is ended, disperse in the land and seek Allah’s Bounty, and remember Allah much so that you may prosper.”

• Prohibition of usurious transactions.
• It is forbidden to make more or less in weight and measure.
• Drug trade is prohibited.
• Adulteration is prohibited and
• Exchange of bribes is prohibited.

• Product being Halal
• existence of the product
• Owning the product and
• Pricing

Yes, it is permissible.

Yes, it is permissible.

In Shariah terms - the amount collected in excess of the amount due on the loan is Riba or interest.

Riba is generally 02 (two) types.

• Riba-an-Nasia and
• Riba-al-Fadl

Riba Nasiya is the extra money or product charged over time on a loan.

If additional goods or money are exchanged in exchange of similar goods, it is called Riba-al-Fadl.

Riba-an-Nasia

• Surah Baqarah, verse 275
  • “Those who consume interest will stand ˹on Judgment Day˺ like those driven to madness by Satan’s touch. That is because they say, “Trade is no different than interest.” But Allah has permitted trading and forbidden interest. Whoever refrains—after having received warning from their Lord—may keep their previous gains, and their case is left to Allah. As for those who persist, it is they who will be the residents of the Fire. They will be there forever.”
• Surah Ar-Rum, verse 39
  • “Whatever you lend out in usury to gain value through other people’s wealth will not increase in God’s eyes, but whatever you give in charity, in your desire for God’s approval, will earn multiple rewards.”
• Surah An-Nisa, Verse 161
  • “And their taking of Riba (usury) though they were forbidden from taking it and their devouring of men’s substance wrongfully (bribery, etc.). And We have prepared for the disbelievers among them a painful torment.”
• Surah Al-Imran verse 130
  • Believers! Do not swallow interest, doubled and redoubled, and be mindful of Allah so that you may attain true success. A few hadiths about Riba
    • Narrated by Jabir (R.A.), he said, Rasulullah (S.A.W.) cursed all the usury receivers, usury payers, usury writers and usury witnesses and said, they are all equally guilty. (Sahih Muslim)
    • Narrated by Abu Hurairah (RA), Rasulullah (SAW) said, Allah will not allow the following four categories of people to enter Jannah as His right, and will not make them taste and enjoy His blessings.
      1. A person who is used to drinking alcohol;
      2. the usufructuary;
      3. the unjust devourer of the orphan's wealth;
      4. Disobedient children of parents.
         (Mustadrak Hakim)
    • Narrated by Abu Huraira (RA), Rasulullah (SAW) said, On the night of Isra (Shabe Miraj) I came to a people whose bellies were like a house full of snakes; The snakes were visible from outside the stomach. Then I said, O Gabriel! Who are they? He replied, They are usurers.
      (Ibn Majah)
    • Narrated by Abu Huraira (R.A.), Rasulullah (S.A.W.) said, "You shall abstain from seven destructive things." The Companions said, O Rasulullah (SAW), what are those seven things? He said, they are:
      1. Associating partners with Allah;
      2. to cast spells; killing someone wrongfully;
      3. usury;
      4. consuming the wealth of orphans;
      5. fleeing from the field of Jihad and
      6. To slander a chaste believing woman.
          (Sahih Bukhari, Muslim and Abu Dawud)
    • Surely an age will come to people when they will gather in mosques and offer prayers but there will not be a single believer among them. After hearing these words of Rasulullah (SAW), the Companions were surprised and asked, at what time will such a disastrous situation come, O Messenger of Allah? Then Rasulullah (SAW) said, When:
      1. Those worshipers will eat interest and
      2. Will build tall buildings.
          (Musannaf Ibn Abi Shaiba)

• Interest arises on loans. Whether the loan is in cash or in the form of goods;
• impose additional charges on the condition of the loan;
• No exchange for additional parts.

Percentage rate is not interest. It is simply a mathematical or statistical expression that is easily understood and universal.

Fixed rate does not mean interest. In fact, the use of fixed rates for pricing or business convenience is a modern business practice to which interest is illogically associated.