Under Islamic financial principles, an asset recovery effort can be a tough task for an individual who does not have any idea about Islamic banking or Islamic financial terminology. However, by getting thorough knowledge about Islamic financial terms and about Islamic banking system, an individual can able to recover and manage his or her assets in much better way.
Islamic financial system or Islamic banking is completely under the rules of Sharia or Islamic law. The key sources of Islamic law or Sharia are Sunna and Quran. The most important feature of Islamic financial system is prohibition of the payment and receipt of capital, also called interest or Riba.
Amanah is known as Faithfulness, trustworthiness and honesty. In Islamic finance, the term Amanah is used to demonstrate a situation in which one individual or a group keeps the property of another individual in trust. This term is widely applied under the confines of Islamic commercial law and it is also used when referring to custody or deposit taking and goods on consignment.
Arbun is also referred as Down Payment. The term Arbun is usually used to describe the deposit that the purchaser makes to the vendor.
Gharar or uncertainty is the conceptual term which is generally used to refer something that is no longer changeable within a contrast. Islamic financial law does not recognize practices such as derivatives, speculations, and short selling contrast.
Islamic finance or financial services, specially designed to adhere Sharia or Islamic law. Although, Islamic finance system or financial banking is exclusively designed for Muslims but non Muslims can also buy these services.
Ijara or Islamic Leasing Agreement
As Islamic Law forbids the Muslims to charge interest on the transactions, Muslim generally get an Ijara which greatly help the Islamic bank or financial institution to search profit through the lease of house, car or any other asset. Ijarah wa Iqtinah is the concept for hire purchase agreement.
Maysir or Gambling
Maysir or gambling is literally forbidden in Muslim society and along with gambling, speculation, derivative contracts and insurance is also forbidden in Islam.
Mudarabah or Investment Partnership
Mudarabah is the financial agreement or partnership between the Rab ul Mal(investor) and with Mudaraib(Another Party). The contract generally shows that how the profit will be shared by both parties and how the losses will be absorbed by the investor or Rab ul Mal. The mudarib or another person will also lose some of the expected income in case of loss.
Website and Apps to learn finance
You can learn other terms and gain insights in the complex finance world with the help of the best website and apps out there.
Bloomberg is one of the best known sources of financial news, and Khan Acadamey is the place to start to learn the basics of finance. You can find good selection of financial apps on specialized website like BestApp, Freapp and Appolicious