Islamic perspectives in P2P lending
July 15, 2018 | Updated at July 19, 2018
TRANSACTIONS pertinent to bank lending are typically conducted based on Bank to Customer or B2C lending from the bank to the customer. In Islamic banking context, however, the term that can be used is B2C financing to capture Shariah principles. The term B2C lending used in conventional banks generates interest income that is prohibited out of injustice and unscrupulous means of obtaining other wealth unlawfully. In contrast, however, B2C financing is based on trade and commerce to assist the customer in obtaining cash for these purposes, marriage, umrah, and house construction, among others.
Despite its significance, however, there exist muslim folks who are not able to access into the facility due to geographical and qualification constraints. Yet, those folks only need a sm...