Search Islamic Finance Answers

1,000+ scholar-approved answers and growing...

Profits And Losses To Overdrawn Accounts
Savings accounts in the bank are usually investment accounts. When the investments yield profit, the account holders share the profits in proportion to the amounts credited.

Is it permissible for the bank to overdraw these accounts by allowing
It is permissible for the bank to allow the accounts to be overdrawn however, in the event that they are overdrawn such that no balance remains in them, then whatever the bank has paid out to the client will be considered an interest free loan and will not be a part of the profit or loss.

ASK AN ISLAMIC FINANCE QUESTION

Each question is reviewed by an Islamic finance expert and approved by a scholar.

Ask Now »

SEARCH ISLAMIC FINANCE Q&As

Browse one of the world's largest database of Islamic finance Q&As available online.

View details »

What’s New at Ethica

Press releases, live events, book recommendations, discount offers, and more

View details »

sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter
sliderFooter