REFINANCING WITH POOR CREDIT

Investment differences with them money
There are two fundamental differences between investment by putting money bungakan. The difference can be reviewed from the definition to the meaning of each.


1. Investing is a business activity that involves risk of dealing with the element of uncertainty.
Thus, the acquisition of the change (return) is uncertain and not fixed.

2. Lend money is a business activity that is less risky because of the acquisition of the change in
the form of interest is relatively certain and fixed.


Islam encourages people towards tangible and productive business. Islam encourages the entire community to make investments and prohibits them money. In accordance with the above definition, save money in Islamic banks, including categories of investment activity due to the acquisition of the change (return) from time to time is uncertain and not fixed. The size of the recovery was dependent on the results of operations which actually happened and the bank as mudharib or fund manager.


Thus, Islamic banks can not simply distribute the money. Islamic banks should strive to increase the return or return on investment so that more interesting and more to give confidence to the owner of the funds.


Difference Money Debt and Debt Products
There are two different types of loans to each other, that is debt incurred by borrowing money and the debt incurred for the procurement of goods. Debt incurred for borrowing additional money should not be there, but with a definite and obvious reasons, such as stamp duty, notary fees, and feasibility studies. Other additional nature uncertain and unclear, such as inflation and deflation, are not allowed. Debt incurred for financing the procurement of goods must be clear in one unified whole or is the selling price. The sale price itself consists of the cost of goods plus an agreed profit. Once the sale price had been agreed, then the change should not go up forever, because it will be included in the category of riba fadl. In Islamic banking transaction that appears is a liability in the form of debt, procurement, not a money debt.

The difference between Interest and Profit Sharing
Once again, Islam encourages sharing practice and forbids usury. Both give benefits to owners of funds, but both have a very real difference. The differences can be explained as follows:


• Interest: Interest Determination made at the time the contract with
thassumption must always be lucky Profit Sharing: The determination of
the ratio / revenue sharing agreement made at the time by referring to the
possibility of profit and loss

• Interest: The percentage is based on the amount of money (capital),
which lent For Results: The ratio for the results based on the amount of benefits

• Interest: Interest paid fixed as promised without any consideration of whether
the project carried out by the customers' profit or loss
For results: depending on the benefits of the projects being undertaken.
When businesses lose money, the loss would be borne jointly by both parties.

• Interest: The amount of interest payments does not increase even if the
amount of profits multiplied or economic circumstances were "booming"
Profit sharing: The amount of profit sharing increases with increase in total
revenue.

• Flowers: The existence of questionable interest (if not criticized) by several
circles Profit sharing: There is no doubting the validity of the results


Below I attach some opinions from some religious opinions about the ugliness and lack of money magnifies the wrong way:


Entrenches usury interest / preferred return on the loan amount at a certain percentage of the outstanding principal, which is charged to the borrower. Riba in a meaningful language: ziyadah (optional). In another sense, linguistically usury also means to grow and expand. While according to technical terms, riba means making additional principal or capital of the property is false. There are several opinions in explaining usury, but in general there is a red thread which states that usury is an additional intake in both transactions and borrowing and lending are false or contrary to the principles of Islamic Muamalat.


Riba in the religious views
The word riba in terms of language means "excess." So if we just stopped to mean "excess", the logic put forward the polytheists in the well-founded. Although the Qur'an only answer their questions by saying "God justifies the buying, selling and forbidden usury" (Qur'an 2:275), and penghalalan pengharaman is of course not be done without the existence of "something" that sets it apart, and "something" that is the cause of keharamannya .


Riba is not just a problem of Islamic society, but many outside the Muslim community had a serious look at the issue of riba. The study of usury problem can be traced back to over 2000 years ago. Problem of usury has become a discussion among Jewish, Greek, nor Roman. Christian circles from time to time also has its own view on usury.


Riba in Islam
In Islam, picked up a profit in the form of riba or usury is haram loan. This was emphasized in the Qur'an Surah Al-Baqarah verse 275: Allah has made ... when buying, selling and forbidden usury .... This view is also an encouraging rise of Islamic banking in which the concept of benefits to depositors for the results obtained from the system instead of flowers such as conventional banks, because according to some opinions (including the Indonesian Ulema Council), bank interest included in usury. how a contract can be said that usury? striking thing is known that the bank interest that includes the enactment of usury is in the initial contract. so when we've saved with a specific interest rate, then we will know the outcome with certainty. different from the principles for results only provide revenue sharing for the depositors. its impact will be very long on the next transaction. that is, if the contract is set at the start / percentage obtained savers already known, so that a target to cover the amount of such interest is the entrepreneurs who borrow capital and whatever happens, the loss would be borne by the borrower. different from the results that only provide a certain ratio to the depositors. then divide the profits from that obtained then divided according to the ratio agreed upon by both parties. nisbahnya example is 60%: 40%, then the depositors 60% of the total profit earned by the bank.


Types of Riba
Broadly grouped into dua.Yaitu usury usury usury debt-selling accounts receivable and payable-receivable-beli.Riba divided into usury and usury Jaahiliyyah qard. While usury is divided into buying and selling and usury usury fadl nasi'ah.

• Riba Qardh
o A benefit or a certain level of surplus required of the debtor (muqtaridh).
• Riba Jaahiliyyah
o Loans are paid more than anyway, because the borrower is not able to pay its debts at the set time.

• Riba Fadhl
o Exchange antarbarang levels similar to or different doses, while the goods exchanged were included in the type of goods ribawi.

• Riba Nasi'ah
o Suspension of delivery or receipt of goods exchanged ribawi ribawi with other types of goods. Riba in nasi'ah arise because of differences, changes, or additions to be delivered between now submitted by later.


Usury in Judaism
Judaism forbids the practice of taking interest. This prohibition contained in many Jewish religious scriptures, both Old Testament and Talmudic law. Exodus 22:25 states:
"If you lend money sn one of my ummah, those who are poor among you, then you must not act as debt collectors against him, thou shalt not charge interest on it." Deuteronomy 23:19 states:
"Thou shalt not lend to your brother, whether cash or food, or anything that can dibungakan." Deuteronomy 23:20 states:
"From a foreigner you may charge interest, but from your brother, you must not pick flowers ... so the Lord your God bless you in all your efforts in the country that you are entering to possess." Leviticus 35:7 states:
"Thou shalt not take the interest money or usury from him, but thou shalt fear thy God, so that your brother may live among you. Thou shalt not give your money to him by asking for interest, do not you give your food too by asking for usury. "


Interest concept among Christians
New Testament does not mention this problem clearly. However, some Christian circles consider that the paragraph contained in Luke 6:34-5 as the verses that condemn the practice of taking interest. The verse states: "And if you lend to people, because you hope to get something from it, whether your services? Even sinners lend to sinners, so that they receive back as much. But love your enemies and then do good to them and lend without expecting a reply, then your reward will be great and you will become children of God the Most High, because He is kind toward the people and the ingratitude of the wicked. " paragraph indecision resulted in the emergence of various responses and interpretations of Christian religious leaders about whether or not Christians should practice making flowers. Diverse views among the leaders of the Christian religion can be grouped into three main periods, namely the views of the early Christian pastor (I to XII century), which forbids interest, views of Christian scholars (century XII - XVI) who wish to be allowed to flower, and the views of the reformers Christian (XVI century - in 1836) which causes interest justifies the Christian religion. Deuteronomy 23:20 states:
"From a foreigner you may charge interest, but from your brother, you must not pick flowers ... so the Lord your God bless you in all your efforts in the country that you are entering to possess."


Early views of the Reverend Christian (Century I - XII)
In this period, generally prohibited from taking interest. They refer to issues of interest to capture the Old Testament is also believed by Christians. St. Basil (329-379) consider those who eat the flowers as people who do not speak-humanity. For him, took the flowers are taking advantage of people in need. Similarly, collecting gold and wealth of tears and sorrow of the poor.


St. Gregory of Nyssa (335-395) condemned the practice of interest because he thinks aid through loans were false. At the beginning of the contract, such as helped but at the bill and ask for the interest to act so cruel. St. John Chrysostom (344-407) argues that the prohibition contained in the Old Testament which was addressed to the Jews also applies to adherents of the New Testament. St. Ambrose denounced as a fraud and flower eaters pembelit (moneylenders). St. Augustine believes the application of interest on the poor is more cruel than the robber who robbed the rich. Because both are equally robbed, one of the rich and another for the poor. St. Anselm of Centerbury (1033 - 1109) consider interest equal to the robbery. Ban the practice of interest was also issued by the church in the form of law (Canon): Council of Elvira (Spain in 306) issued the Canon 20 which prohibits church workers practicing taking interest. Whoever violates, then the rank will be reduced. Council of Arles (314 years) issued a Canon 44 which also prohibits the practice of the church workers are taking interest. First Council of Nicaea (325) issued the Canon 17 which threatened to fire workers who practice the church flowers. Prohibition of entry into newly issued common interest to the Council of Vienne (year 1311) which states that whoever considers that interest is something that is not sinful then he has been out of Christians (apostates).


The initial view of the Reverend Christian can be summed up as follows
Flowers are all the forms demanded in return that exceeds the number of items loaned. Taking the interest is a sin that is prohibited, both in the Old Testament and New Testament. Desire or intention to get benefits beyond what lent is a sin. Interest should be returned to its owner. An elevated price for the sale of goods on credit is also a hidden interest.


The Bachelor of Christian views (Ages XII - XVI)
In this period there developed very rapidly in the field of economy and trade. At that time, money and credit became an important element in society. Loan to provide working capital to merchants began rolling at the beginning of XII century. Financial markets slowly start to form. The process encourages the realization of the widespread market interest rates. Christian scholars during this period not only discuss issues of interest solely in moral terms that refer to the verses of the Old Testament and New Testament, they also relate to other aspects. Among others, concerning the type and form of legislation, a person's right to the property, characteristics and meaning of justice, benefit forms, intentions and actions of human beings, as well as the distinction between sins of individuals and groups.


They are deemed to have made new breakthroughs in connection with the definition of interest. From the results of their discussion for the purpose of refining and legitimizing the law, interest is divided into interest and usury. According to them, interest is interest that is allowed, while usury is excessive interest. Proponents of Christian scholars who contributed a huge opinion in connection with this interest is Robert of Courcon (1152-1218), William of Auxxerre (1160-1220), St. Raymond of Pennaforte (1180-1278), St. Bonaventure (1221-1274), and St. Thomas Aquinas (1225-1274). Conclusion of the discussion of Christian scholars such period in connection with the interest rates are as follows: Intention or deeds to gain by giving the loan is a sin that contrary to the concept of justice. Taking the interest of the loan is allowed, but illicit or not depends on the intention of the giver of debt.


The view of the Christian Reformed (XVI Century - Year 1836)
Opinion of the reformers had to change and form a new view of interest. The reformers were, among others, John Calvin (1509-1564), Charles du Moulin (1500 - 1566), Claude Saumaise (1588-1653), Martin Luther (1483-1546), Melanchthon (1497-1560), and Zwingli (1484 -1531).


Some of Calvin's opinions relating to interest, among others:
• Sin when the interest burden.
• Money can flourish (in contrast with Aristotle).
• No interest decision making as a profession.
• Do not take the interest of the poor.

Du Moulin urged that making a simple interest rate is allowed as long as it is used for productive purposes. Saumise, a follower of Calvin, to justify any taking of interest, although he comes from the poor. According to him, selling money with money is like a normal trade, then there is no reason to prohibit people who will use the money to make money. According to him too, religion need not bother to meddle in the affairs relating to the interest.