Bank Credit Versus Mortgage

[Umer]

Your concern is not very clear. Hopefully you will find the videos in the following thread helpful:

Discussion 30863

[Shaharyar Sabeeh]

Yes sir I have listened to the 23 questions series regarding Riba & Sood.
There are different ways of transactions working through banking system that people utilize for different purposes.
1) One of them is mortgage that Ghamidi Saheb discusses extensively, especially in part 3 and 4.2) Another of them is using Bank’s credit for purchasing an item or stuff and then repaying back within a specific period as set by policy (a penality is charged if one fails to do so). This is discussed specifically by Ghamidi Saheb in Part 4 from 20:00 onwards.

Isn’t the way of lending quite same in reality in both these cases? Only that the way banks acquire money back from people is different?

[Umer]

As you pointed out, both cases have been discussed in the videos shared above. I still fail to understand your concern.

[Shaharyar Sabeeh]

You see in both these cases, the person themselves don’t get the money in their hands and the Bank lends the money directly to the selling party.

You just get the house/ product you needed to buy and they bank pays on your behalf. Later, you pay it back to the bank.

Now this later paying method is different in case of mortgage vs credit card method.

In the previous, you pay back the rent and along with it the actual amount.

In the later, you just pay back the actual amount only if it is retuned within the given time. And if it not, then you pay the penality.

I am asking to correct my understanding, if you find anything wrong in it, that I have developed all while seeing this 4 part series.

[Umer]

Seems fine, it is already explained in the videos.