Comments on: Islamic finance as an alternative investment http://allaboutalpha.com/blog/2010/02/23/islamic-finance-as-an-alternative-investment/ A finance blog about hedge funds, portable alpha and alternative investing. Thu, 09 Feb 2012 19:03:08 +0000 http://wordpress.org/?v=abc hourly 1 By: La Finanza Islamica » Blog Archive » La Finanza Islamica come investimento alternativo http://allaboutalpha.com/blog/2010/02/23/islamic-finance-as-an-alternative-investment/comment-page-1/#comment-238912 La Finanza Islamica » Blog Archive » La Finanza Islamica come investimento alternativo Fri, 05 Mar 2010 07:54:41 +0000 http://allaboutalpha.com/blog/?p=10094#comment-238912 [...] pertanto su questa linea riportandovi qui un contributo apparso su allaboutalpha.com. No Comments ::Read [...] [...] pertanto su questa linea riportandovi qui un contributo apparso su allaboutalpha.com. No Comments ::Read [...]

]]> By: shake http://allaboutalpha.com/blog/2010/02/23/islamic-finance-as-an-alternative-investment/comment-page-1/#comment-237417 shake Thu, 25 Feb 2010 03:18:35 +0000 http://allaboutalpha.com/blog/?p=10094#comment-237417 For a layman: If I am investing in a financial institution, it makes sense that according to the Islamic Financing I would have to bear both profit and loss in any investments that entity makes on my behalf. However, how does it work in the case of leases and loans? What incentive would that entity have to lend me money if I have to only return the exact same amount ( or equivalent according to currency value depreciation) that I received. I would think that they would offer these services only if they are getting some sort of financial gain from them. For a layman:
If I am investing in a financial institution, it makes sense that according to the Islamic Financing I would have to bear both profit and loss in any investments that entity makes on my behalf.
However, how does it work in the case of leases and loans? What incentive would that entity have to lend me money if I have to only return the exact same amount ( or equivalent according to currency value depreciation) that I received. I would think that they would offer these services only if they are getting some sort of financial gain from them.

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