FAQ

Islamic finance is an interest free finance system. There is therefore, no charge for its use. Islamic finance is asset based as opposed to being currency based. A deal is structured on exchange or ownership of assets and money is simply the payment mechanism to effect the transaction. The basic framework of Islamic finance is based on elements of Shari'ah, which governs Islamic societies. Shari'ah is the law for Muslims and originates from the Quran. The Quran is the Holy Book of the Muslims based on the teachings and practices of the Prophet Muhammed (SAW). Sunnah, the way of life prescribed by Islam, is also described in the Quran.

The major difference between Islamic finance and conventional banking is that Islam teaches us that money itself has no intrinsic value and forbids people from profiting by lending the money without accepting any level of risk. Interest cannot be charged. Wealth can only be generated through legitimate trade and investment. Any gain relating to this trading must be shared between the parties concerned.

• The Prohibition of Riba which is the taking or receiving of interest.
• Risk in any transaction must be shared. The capital provider and the entrepreneur must share the business risk for a share in the profit.
• The prohibition of speculative behaviour (Gharar), which means that gambling (Maysir) and extreme uncertainty is prohibited and consequently, contractual obligations and disclosure of information are central obligations to financial business transactions.

During the time of the Prophet Muhammed (SAW), many people gained from lending money at exorbitant rates. They made financial gain at the expense and misfortune of others. As a result, the payment of interest was forbidden in Islam because it was unjust.

Islam teaches that money should be used in a useful way. You cannot make money from money, but you can generate wealth through legitimate trade in goods and items. The risks and rewards must however be shared.

No. Islamic finance is available to anyone who may wish to use interest free banking. Anyone of any religious background is welcome to apply for products from IslamicFinance, a division of WesBank, part of the FirstRand Group.

Money is kept in accordance with the Shari'ah regulations. This means that money is not used for any interest based business activities. Due to the fact that interest is haraam (forbidden), an interest based overdraft account is not offered. There is no debit or credit interest.

An annual dividend is paid out to account holders based on the profit generated from Islamic finance products.

Yes. This can be done at any FNB branch or alternatively you can call our contact centre on 0861 786 788.