Posted by: islamicfinancingnews | July 19, 2012

Talk to your lender about different types of Islamic loans that are free from Riba

There could be many reasons why you need to borrow money including plans to purchase an expensive item for your home, pay for a home renovation, or consolidate some of your outstanding debts. Whatever the reason, obtaining Islamic loans that are free from Riba will keep you on the right path.

When you are considering applying for a loan, you’ll find there are many options to choose from. If you are interested in a lump sum payment usually at a fixed or variable rate of interest which will allow you make a purchase or cover another type of expense, a personal loan could be the answer. On the other hand, a personal line of credit is better suited to someone wanting to reuse the credit continually. Often the maximum amount of money you can borrow with a personal loan will depend on a number of factors including your credit score. Payments are usually calculated to include both principal and interest and there is often repayment flexibility that can include weekly, bi-weekly, semi-monthly or monthly payments, allowing you to choose a payment structure that suits you.

Generally, personal loans for higher amounts have lower interest rates and are secured by collateral which could include your residential or business property, while loans for lesser amounts at higher rates are usually unsecured and often have the advantage of being approved quickly. Talk to your lender for advice on the best Islamic finance options available to meet your financial needs.

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