You Get the Funds You Need FAST With a Cash Advance Payday Loan Online!

Are you in need of cash fast? Well, if you’re looking for a way to get cash quickly and easily then you can stop looking. Stop searching and apply for a payday loan online. You can apply online without any personal contact at all and your application will be either approved or denied within just a few minutes after submittal.

Before you log on to an online payday cash advance lenders website to complete the application for your loan there are a few things you will need to do first. It’s a good idea to gather up the required documents you will need before you begin. You will be required to verify your identity, your age, your home address and your employment and your checking account, so, have this information handy before you begin. The application will also require your social security number and a valid driver’s license number so grab them too.

You also might need to have your last few pay stubs and have specific information about your employer ready such as address and phone number information. This information will be used to verify that you’re currently employed at this location so make sure that it is accurate and that you enter the information correctly or your application will definitely be denied.

You will also need specific bank account information such as, your checking account number and your account routing number. It’s a good idea to make sure that you don’t have any insufficient funds charges on your account within the past 30 days. Some lenders may allow you to have up to 3 since some accounts are covered with overdraft protection.

Now that you have all of the required information all you need to do is just fill out the online application and then within minutes you’ll know if it’s approved for you. Then if it is approved, your money will be direct deposited into the bank checking account that you supplied on the application and this usually occurs within 24 hours, sometimes within 1 hour after being approved.

The application process is very simple, quick and easy and if you are prepared with all of the information that you need when you apply it’s even easier. You will have a deposit into your in a timely manner.

Alright, that was the easy part. Now comes the not so easy part. Repaying the loan on time as promised is not nearly as easy as having it magically appear in your bank account. This is due to the fact that the finance charges and other fees charged to you on your payday loan online are usually quite high.

These fees will vary from lender to lender and some can be as much as $30 for each $100 that you borrow, so it’s a good idea to at least look at several lenders online before applying for your loan. This can save you considerable charges on your loan and make it much easier to repay.

These payday cash advance loans online can be a real life saver in your time of need. just make sure to pay it back on time. If for some reason you can’t repay the full amount on time, most lenders will cheerfully give you an extension as long as you pay the finance charges on the prior loan period.

Using payday loans online or offline as a regular source of borrowing is not recommended. The total amount of money you will end up paying in finance charges and other fees can be very high. Make sure you understand the full amount you will be paying back before you choose a payday cash advance loan.

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Gearing Up For The Holidays Without A Payday Loan Online

Will I be running to or running from online payday loans? It isn’t even October yet and I have already heard the words “Christmas shopping”. I may not be ready to start my shopping, but it is time to start planning financially. It’s time to start figuring out how many paychecks I have left until then and figure out a budgeted amount to be spent.

A responsible lender would not tell you that a low cost online payday loan would benefit your holiday shopping. These loans are for emergency costs. Holiday spending is something which can be planned for throughout the year. Start early with a holiday savings club which may be offered at your local bank or maybe a fun decorated jar which you keep up in your closet. Stick away so much per paycheck throughout the year and you will have cash to spend come the holiday.

Budgeting anything can happen as long s you have the will power and dedication to make it happen. How many people will you be shopping for? How much would you like to spend on average for each person? When you break that total down to how many paychecks you will get before the holiday comes or during the year if you are going to make it a whole year project.

When it is time to shop, don’t be tempted by ATMs, credit card offers or payday loans to over spend. The purpose of the holiday is to give but not to the point where your finances will be hurting. It doesn’t take expensive gifts to make the holiday festive. All it takes is some planning and a bit of self-control in order to make it through the end of the year without sinking further into debt. When you have the cash on hand, you will be able to take advantage of any early sales. If you start saving now, you will hopefully be able to have enough to make a dent in your shopping list come the big sales time.

Credit card and payday loans online debt have grown in popularity for those who shop beyond their means or spend no time trying to work these costs into their yearly budget. The dates do not change, you have a year to plan for it, and so what reason would you need a new line of credit or a loan for? Unexpected costs, medical emergencies, or a rise in fuel costs are all unplanned income busters. The only way to plan for these costs is to have a savings account which you can pull money from during that financial crunch.

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The Advantages of a Payday Loan Online

When you need money, you usually go to lending agencies. As such, you need to spend for your transportation and meals because these lenders will ask you to come to their office, have an interview and then fill out lengthy application and registration forms.

Somehow, this defeats the purpose of borrowing money, right? You need money to address a particular and immediate need. But in your attempt to get that needed financial assistance, you are required to spend, though just a bit. Still, it is spending.

By availing of a payday loan online – such as payday loans in Ontario – you don’t have to be subjected to the scenario above. Here are a few advantages of this type of loan.

1. You don’t have to be sociable.

As mentioned, getting a loan needs you to visit the lending agency and talk to a few people there. Naturally, their representatives will ask you a few things. But as you know, there are really people who are not that comfortable in facing others. If you are one of these, then you’d be happy to know that if you avail of a payday loan online instead, you don’t have to face any representative from a lending agency.

You don’t even have to go out of your home. All you need are your computer and an internet connection. All application forms and documents have to be sent and received through the internet. Therefore, by availing of a payday loan online, you can just sit in your desk and wait a few hours before the proceeds of your loan get credited to your bank account.

2. You don’t have to spend.

Unlike other cash loans, online payday loans do not need you to spend for transportation and food. This is so as availing of a payday loan online does not even require you to get out of your house. You don’t even have to go to the bank and en-cash or deposit your check.

So, you can just have lunch and snacks at home and watch some television while waiting for your loan to be credited to your account. In effect, you are not required to do some unnecessary spending. Of course, this is a good thing considering that you are already tight on your budget.

3. You don’t have to submit a mountain of requirements.

Some types of loans, especially those that offer you very high proceeds, require a lot of documents and files from you. But this is not the case when you avail of a payday loan online. With this type of loan, you simply have to fill out the following information, among others: you name, your address and other contact details, your employer’s name and address, your bank details.

And, you don’t have to print all of these (and unnecessarily spend on paper and ink). Rather, these pieces of information can just travel through the internet.

Indeed, a payday loan online has much to offer. All in all, it can give you your needed money without letting you face an unfriendly customer service agent or letting you spend for transpo expenses. Now, this is one type of loan that has all the right to describe its services as fast and convenience.

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Payday Loans Online – Why Not?

The economy is getting more complicated every single day and we all need money. But how urgent do you need money to pay for your immediate spending needs? The next payday are still weeks away and you needing the money right at this very moment is making it hard on you. The answer is simple: payday loans online. Just fill up the short application form online and there goes your cash advance before you even know it.

Payday loans online offer short-term unsecured cash loans to assist you with your immediate cash needs while waiting for your next payday. Simply apply online, provide the necessary details, have it approved and then the cash you borrowed will be electronically sent to your account. Normally you are allowed to borrow between $100 and $1,000. To finalize the transaction, it will still have to undergo a screening process by the lender. You will be able to repay your loan through the bank account that you have stated and automatically withdrawn along with the agreed fees to be paid. The repayment terms could vary from one lender to another, therefore you have to review the terms and conditions very carefully. No collaterals necessary. Once your application is approved, you will be provided with a wide-range of reputable lenders for you to choose from. Each lender has different terms and conditions that you may need to read thoroughly before selecting. They are trustworthy and there will be no hidden charges. Every single fee shall be transparently showed to you before completing the transaction. No processing fee will be charged during application.

If you have a bad credit, the company will look for lenders who are willing to lend you money provided that you have a stable income and you pass their necessary requirements. Unlike other lending options where in you have to fill-up tons of complicated application forms and wait for two to three weeks without assurance of approval, you only need twenty-four hours or less with online payday loans for the processing. If you are worried about the protection and privacy of your personal information, fear not because they are very much secured. Sometimes they give refunds of fees when you pay back earlier than the due date agreed upon. This will make transactions smoother in the future because you will have a better credit history. If you fail to pay back, the penalties will depend on your agreement with your chosen lender. However, it could be as huge as facing criminal charges or as small as paying extra fees. You are also not allowed to apply for new payday loan without settling first the previous loan, but you may renew your payday loan for the next payday.

To pass the initial application process, you must have the following requirements:

Currently employed or having a regular income (sometimes indicating a minimum number of days employed)
Monthly income of at least $1,000/month after-tax
You must be at least eighteen years old
A US Citizen or a permanent resident of the US
A valid checking or savings account under your name
Contact details – a valid e-mail address, home and work numbers, mobile numbers, home address

Although it is easier to apply for a short-term cash loan with payday loans online, you must be responsible enough with your finances. If you have budgeting issues, it is best to seek the help of a financial advisor for better financial management. Your monthly income should be able to cover up for your debts and other expenses. You can also notify your creditors on your willingness to pay but have budgeting problems. They can help you out and offer budgeting plans. Online payday loans only solve your short-term and urgent financial needs while you wait for the next payday. You also have to be responsible for the repayment of your loans or you could be facing a bigger trouble. If you cannot pay your loan in full on the agreed due date, you may apply for a loan extension. There will be a customer service representative to answer every question so make use of this before you make a decision. An e-mail will be sent to you once your application is approved.

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How to Get Payday Loans Online – Get a Loan Right Now!

The ability to obtain instant payday loans online has become quite popular. It is quite easy to fill out the online form. Normally, it takes less than an hour for approval and approval is gained without a credit check. It is important to check each payday loans company for verification with the Better Business Bureau in one’s local area. If the company one has chosen is not registered, it is a good idea to continue his or her search till he or she has found a registered company in good standing.

Reputable companies understand that there is a need for financial services for those who cannot borrow traditional loans. However, many individuals seek out payday loans online in Ontario without first checking the background of the lending company. It is important to do a thorough search before settling on the company with which to do business.

The concept of payday loans is that an individual can obtain much-needed cash deposited instantly into his or her bank account that will enter repayment on his or her next payday. The interest rates will rise as the length of time till repayment is extended, that is why it is important to pay back these short-term loans as soon as possible. The application process is very simple and streamlined and states all terms and conditions in plain English.

For those individuals that do not know what a cash advance loan is, it is a short-term loan that is also known as a cash advance loan. These are great ways to borrow for those that cannot or do not want to borrow with a traditional lender, such as a bank or credit union. There are higher interest rates due to the convenience of this type of loan and a shorter repayment period. The term of the loan is normally seven to twenty-one days after receiving the funds.

If an individual has had credit problems in the past, there is also a payday loan just for them. For those who simply need help arranging their finances, credit counseling services could be just what they need.

Applying for payday loans online has never been simpler, with shorter forms and more online lenders to choose from. If one believes that this may be the right road for him or her to take, simply research the company before giving out any personal information.

The world is experiencing economic hardship right now. No jobs, housing market at a standstill and no end in sight makes it difficult to hold out hope for the future. North America seems to be worse off for those that live there, even is feeling the strain. With no end in sight to the economic plight, where does one go for extra funds when they are needed? For citizens, extra cash for unexpected expenditures comes in the form of payday loans online.

When a person’s paycheck is weeks away, but car repairs or emergency medical treatment is needed, having cash on hand really helps. If a person does not have extra cash for such items, then it can be disastrous. That is when a payday loan can pull a person through a rough time.

All a person has to do is go online and provide information like, citizenship, employment, checking account with bank, drivers’ license, and contact numbers. Once the information is verified, a person can have a loan in a matter of hours.

There are no hidden fees to worry about once a person accepts the loan. That can be frustrating to think that everything is all taken care of and then are slammed with another fee. Payday loans online is up front about fees when a person applies so there are no surprises later.

Some establishments may charge processing fees, not so with a cash advance loan. Applying is free and takes only a few minutes of a person’s time in the comfort of his or her home.

A person does not have to worry that unscrupulous people may get a hold of his or her personal information either. Payday loans online keeps a person’s information strictly confidential. They understand a person’s nervousness about giving out personal information and make sure it is much safeguarded.

One of the best parts about applying online is how simple and fast the approval process works. Once approved, the money is wired directly to a person’s account and ready to be used. Repayment works the same way, it is electronically deducted from a person’s account; no muss, no fuss. Payday loans online makes getting needed extra cash hassle-free. When a person needs cash, he or she should apply online with a payday loan facility in your town.

It used to be quite difficult to obtain a payday loan, but now, with the advent of the internet and payday loans, this is something that more and more people are checking into. This is not to say that more are experiencing financial troubles, even with the global economic crisis; it simply means that now that these loans are easier to obtain, more people are qualified to receive them.

Experts are saying that more individuals than ever before are choosing payday loans for the ease of the application process. This was not so even just a few years ago because of the length of time it took for approval, and many times, properly qualified people were still turned down. Also, back then, your credit had a lot to do with your acceptance, as well; but, all that has changed, and no longer do payday loan centers require a background or credit check.

Also, thanks to the internet’s ability to put people in instant contact with various businesses, it is easier than ever before to obtain payday loans. In fact, the entire application procedure has been lessened to just a couple of hours. Imagine, in a little over two hours, you could have the money you need in hand. This is why obtaining payday loans online has become the new way to obtain the funding needed for your emergency.

Of course, there are still the skeptics out there who believe that payday loans may not be for them. Rightly so, as it does sound as if the lending agencies are just handing out free money; however, there are qualifications that one still has to possess and it is certainly not free money. Not only must it be paid back in a much shorter time frame than a traditional loan, but it also has loan fees attached to it for the right to borrow the money. These loans are quite efficient for those finding themselves in a financial debacle, but they do come with a certain price.

The greatest thing about payday loans is the fact that you do not have to suffer through a financial setback any longer. You do not have to look at life as though you need to worry what will happen with your next monetary emergency. Payday loans can help you get rid of your financial problems efficiently.

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The Benefits Of Getting A Personal Loan

A personal loan is usually not secured. It means collateral does not need to be provided by you when you borrow. The loan is offered to you by the lender on the basis of your credit and qualifiers. You can easily get the approval of loan, if you have a good credit. A lower interest rate can also be offered to you. Visit a financial institution or search online to get a personal loan.

Here is a list of some of the benefits of such a loan.

Lower interest rate – If you have good credit, then personal loans with lower interest rates can be availed by you. Around 15% APR on a credit card balance is paid by the people with lower credit card balance. But if you have good credit, you have to pay only 6% APR. While making a big purchase, it is considered as a big difference.
Use for many purchases – Your cash can be used by you for making any purchase. A loan of this type can be used even for purchasing a vehicle, starting a business or renovating your house. Restrictions may be placed by other types of loans on the usage of fund. But the conditions of using a personal loan are flexible and can be used for any purchase.
Consolidate debt – High interest debt can be consolidated by using a personal loan. Several smaller debts with high interest such as credit cards and student loans can be paid off by using a larger loan. Money on interest can be saved if you consolidate your debt by using this loan. Your debt repayment plan can be managed in a better way by combing several loans in one place.
Smooth your cash flow – Your cash flow can be smoothened by using a personal loan. A personal line of credit can be got by you, by using your personal loans. You have to pay a low interest rate in this alternate way of use. An emergency fund doesn’t need to be raised for future. The borrowed amount can be repaid by accessing your line of credit.
Boost your credit score – Your credit score is counted depending on your different types of accounts. One type of credit is represented by credit cards. In this case, you can use your credit score to handle your loans. Your score can be boosted slightly by adding instalment loans in your credit report.
Thus, save a huge amount on all your purchases by using a personal loan. Always remember to compare different loans before borrowing any sum.

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Five Reasons for Refusal of a Personal Loan

Don’t you wish personal finance were a mandatory course in college? Unfortunately, too many of us learn by mistake. When you need a personal loan and are rejected, you might be baffled as to what went wrong- and how to fix it. Here are some clues.

NO CREDIT

No credit is a situation where you have never used credit and therefore have no credit history for the bank to review. They have no way of making an educated decision on whether or not you will pay back a personal loan based on your credit history. No credit is worse than bad credit. Qualifying for and making regular payments on these types of introductory forms of credit can overcome a “no credit” score:

· Student Loans

· Secured credit card (includes a down payment amount)

· Being added to a parent’s or spouses good credit: card, car loan, etc.

LOW CREDIT

Low credit takes on several forms. If you’re using more than 30% of your allowable debt, it can negatively impact your score. Too many inquiries from shopping around for loans will also hit you hard. Lapses in payment, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.

Other things that lenders may look at are whether or not you have sizeable assets should you default on the loan. They also check to see if your debts are diversified or if you are only carrying one type of debt.

INCOME

Proof of income is generally required when applying for a personal loan. If you are unemployed or underemployed, it can work against you in the loan approval process. Lenders may also require a work history to see how long you have been with your current employer, and to determine if you typically have job stability. Frequent job loss or change will tell a creditor that your payments may not be reliable.

PURPOSE OF THE LOAN

Believe it or not, your application can be rejected due to your proposed purpose for the loan. Financial institutions have the right to set up the parameters surrounding their disbursements and can accept or reject your application based on what you want to use the money for.

BLACKLISTING

If you’ve defaulted on debt before, your name may be put on a list of whom not to loan to,’ also known as a “Blacklist.” This will follow you around for a long time and is difficult to erase. If you do resolve the debt issues, get documents to prove the resolution.

NO CREDIT CHECK LOAN

If you need a loan now, but are concerned that you might not qualify for a personal line of credit, you can qualify for a No Credit Check Loan. You could be on your way to a better financial future in no time!

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A Latin Impact on the Finance Industry

Financial Institutions are a fantastic business model to learn from when considering ever changing market conditions. Their traditional target markets are stable, but, the needs of an emerging market, the Latino market is extremely underserved. It is certainly not for lack of money. Many Latinos have zero debt and healthy saving habits. The question arises, are financial institutions doing enough to serve this population? Are they adapting to the Latino needs? The answer is complicated.

There are two types of Latinos in the USA. One is the immigrant seeking a better life and wanting the American dream, whether they came through the proper channels or not it is irrelevant. The second, are the Latinos that are born here. These are two very different groups of people with different needs and goals. Most immigrants bring their culture, traditions, and customs with them to the US. Those born here develop a blended culture that is both Latino and American.

Financial Institutions are taking notice and making strides to accommodate this very economically influential population. The main reason is that there is a lot of investment in education and developing trust. An untold detail is that in Latino countries, people do not trust banks and financial institution because of corruption. Everything is paid in cash and there are no debt or traditional credit scores. This means that the Latino community have cash, probably stored under their mattress or in a shoe box. This is very dangerous considering that a house fire could burn an entire life savings. Another scenario is they could become a target for robbery. This is a foreign concept for Americans. What is happening is a huge learning curve, educating them on the process of building credit, saving their money in a financial institution, getting loans (mortgage, car, etc.), and most important having trust in the financial institutions.

The younger generations that are born here learn from their parents and surroundings. There is still a disconnect from the importance of financial products, building credit, and how that process works. Many of these young people are just translating for their parents, explaining financial products, and become an intermediary for conducting business. You will notice an increase in bilingual support at many financial institutions for this reason. There is still a lot of work to do in this regard, and this process will take time.

However, more and more financial institutions are offering products specific to Latinos. Information is becoming available in Spanish and more financial institutions are hiring bilingual and multi-lingual speakers. It will be interesting to see how we as a country adapt to this important demographic. It is truly an untapped market that has an important function in our economy for growth and stability.

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6 Home Loans Tips Before Applying

Applying for home loans could be dreadful, particularly on the off chance that you are a first-time home purchaser. There’s a considerable measure of printed material and indulgent preparing included. Yet at the same time, it is justified regardless of your exertion. This far reaching contract aide will walk you through the way toward securing financing for your home and make you feel that applying for a home loan is not that horrible all things considered.

1. Know about them Lender or Broker?

There are two approaches to apply for a home loan. To start with, you can manage a loan specialist or home loan organization straightforwardly. Second, you can procure a home loan representative who will help you look over an assortment of moneylenders. Most homebuyers think that its less demanding and less expensive to choose a loan specialist, without assistance from the outsider. In addition, with a specific end goal to locate an equipped and solid agent, you should do a really decent research and get references. That is the reason a great many people like to keep it straightforward and manage a bank themself. In a few circumstances, be that as it may, merchants can really work to support you. For instance, if your record of loan repayment is not all that good, an accomplished dealer might be exceptionally useful in shopping and arranging for the most ideal arrangement.

2. Know the True Rates

The publicized rate frequently snatches borrowers’ consideration yet it is really not the one that borrowers ought to depend on. The AAPR or “the genuine rate” is a much better guide, as it checks every one of the expenses and charges that will happen over the term of your loan. In spite of the fact that the AAPR is a stage up from the publicized rate, it is still only a quantitative device. Once you’ve chosen a couple loans in view of their AAPRs, you will at present need to investigate their different elements. Some worldwide think-tanks, for example, CANNEX and AIMS Home Loans can outfit you with some canny data about mortage loans and help you limit down your choices quicker.

3. Know about loans details & terms

When you search for a home loan and read through various home loan terms and conditions, you will go over money related wording that you most likely won’t discover somewhere else. It is critical for you to comprehend those home loan terms with the goal that you can secure the most ideal arrangement. Truth be told, numerous money related foundations and land firms offer free homebuying workshops, which can help you comprehend what individuals are discussing in land business. Here are some fundamental home loan terms that you ought to know:

APR – Yearly rate, expected to mirror the yearly cost of acquiring. It is otherwise called the “promoted rate” or “feature rate”, that ought to make it less demanding for borrowers to think about moneylenders and loan alternatives.

Closing Costs – Shutting costs incorporate “non-repeating shutting costs” and “prepaid things.” Non-repeating shutting expenses are any things to be paid only once as a consequence of purchasing the property or acquiring a loan. Prepaid things are things which repeat after some time, for example, property charges and mortgage holders protection. Normally a moneylender should gauge both the measure of non-repeating shutting costs and prepaid things, then issue them to the borrower inside three days of accepting a home loan application.

Collateral – An insurance is the thing that you use to secure a loan or ensure reimbursement of a loan. In a home loan, the property is the security. The borrower will lose their property if the loan is not reimbursed by assentions of the home loan.

4. Check Your Credit

When you apply for a home loan, your whole record as a consumer will be investigated by your forthcoming moneylender. FICO ratings more than 620 have a decent risk of getting affirmed for a home loan with a decent financing cost. On the off chance that your score is beneath 600, in any case, your application might be denied or you may get affirmed at a much higher loan fee. Whether you have a decent or terrible financial assessment, what you ought to do is check your credit report before your bank does. You can get your credit report from Equifax, Experian and Trans Union. In the event that there are any mistakes, attempt to contact these three organizations and clear them up. This procedure can take a great deal of time, so it is something you ought to do a while before apply for a home loan. Paying down your budgetary commitments, for example, Visa obligation and auto loans, before applying for a home loan is additionally an extraordinary thought.

5. Don’t afraid from your bad credit score

Regardless of the possibility that you have an awful financial record, you ought to in any case glance around for the best arrangement. Don’t simply expect your lone choice is a high-taken a toll loan. On the off chance that your credit issues were created by unavoidable circumstances, for example, ailment or a brief loss of pay, disclose your circumstance to the loan specialist or intermediary. Ask a few banks what you need to do keeping in mind the end goal to get the least conceivable cost.

6. Verify and clarify all the things

A pre-endorsement letter is extremely useful, yet not as awaiting as you may think. When you locate a home you’d like to purchase, and your offer has been endorsed, you will need to do a reversal to the moneylender and submit archives that confirm your monetary data to get a loan. Your benefits will be assessed. The loan specialist will investigate your work history. You ought to have no less than two years of business history in the same profession. On the off chance that you are new to the work power, advanced education may help you get endorsed. In the event that you don’t have a sufficient record as a consumer, you may utilize normal regularly scheduled installments, for example, lease, telephone, or satellite TV to demonstrate the loan specialist that you are a reliable shopper.

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The Role of Islamic Finance in Economic Stability and Social Justice

One of the most distinguishing times for the U.S. Islamic home financing industry began in February 2007. The Federal Home Loan Mortgage Corporation (Freddie Mac) sent out a press release announcing that it would no longer buy the most risky subprime mortgages and mortgage backed securities. Two months after the announcement, a leading subprime mortgage lender filed for Chapter 11 bankruptcy protection. Three months after that bankruptcy filing, nationwide financing entities warned of “difficult conditions” ahead. Manifestations of such difficult conditions appeared on the horizon of the financial market when once well-established mortgage companies suddenly began to file for Chapter 11. Similar circumstances reached the U.K. as the Bank of England cleared an authorization to provide liquidity support to Northern Rock, the country’s fifth largest mortgage lender. Five months later, Treasury of the United Kingdom became the owner of Northern Rock.

Up until that point, the gravity of these “difficult conditions” was not fully understood by most of the populace. Late in 2008, the Federal Reserve Bank of New York was authorized to lend $85 billion to the AIG. This was the beginning of the most serious recession in the United States since the Great Depression. What followed was a chain reaction that led to an unprecedented global financial crisis, as the world suffered from rising unemployment, rampant foreclosures, and severe skepticism of financial instruments.

This led to a renewed spotlight on an unfamiliar market segment that appeared comparatively more stable and, more importantly, far more ethical: the Islamic financing sector. From the financial centers in Malaysia to the Middle East, spanning across over seventy countries, Islamic finance in the U.S. increased from $5 billion in the 1980s to $1 trillion in 2010. This phenomenal growth caught the attention of global investors who were seeking to safeguard their investments through more ethical and reliable financial instruments. When financial sector workers realized that these Shariah-compliant instruments avoided many of the worst effects of the global financial crisis, it became an attractive investment vehicle to support a more diverse portfolio. The Shariah-compliant financial sector has avoided investment in predatory lending businesses and overly leveraged financial instruments due to the strict ethical nature of the Shariah governance system. News and media outlets started to cover this ancient yet unfamiliar industry in hopes of learning from the mistakes of the conventional banking sector.

The concept of the modern Islamic financial services industry is rooted in the principles of Islamic legal jurisprudence that deals with financial transactions, a branch of Islamic jurisprudence called Fiqh Al Muamalat. Fiqh Al Muamalat is a framework under Islamic Law that charts the conduct of Muslims in commercial or economic endeavors. Islamic finance products and rulings are based on specific injunctions from the Quran that prohibit certain features of financial transaction models and related economic activities.

The Quran forbids interest, also called usury or riba. The underlying reasoning is that Islam considers lending to be a charitable act to help another member of the society in his/her time of need – therefore, profiting from someone’s hardship is strictly forbidden. In the conventional banking system, when interest is charged on a loan, the risk of that transaction is transferred to the borrower while the lender gains profit from the interest-based transaction. There is no consideration for the hardships endured by the borrower in the event they undergo any loss from the transaction.

By its nature, Shariah law prohibits unethical financial practices. It also promotes wealth distribution among all people to reduce poverty and inequity. This is manifested in the prohibitions of activities such as excessive speculation, gambling, and investing in products that are harmful for society as deemed by Islamic law (alcohol, pornography, etc). The structure of Islamic financial products and services, especially its prohibition in speculative transactions, has helped the industry escape most of the adverse effects of the global financial crisis. The governance model of Islamic financial institutions has been praised as an ethical alternative by institutions such as the International Monetary Fund and the World Bank. Economic experts have suggested that Islamic financial principles can be leveraged to promote financial inclusion that uplift the quality of life in developing nations. Islamic financial principles can also contribute to financial stability and economic development around the world.

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