Then NCA nightmare!

[duncan drennan]

The NCA excludes all leases of immovable property. The bond still falls under the ambit of the NCA.

Ahh, thanks

[Graeme]

My limited understanding of the law which governs business in Islam is that the charging of interest is forbidden. They get ‘round this by adding an amount up-front in lieu so that the interest consideration is part of the price. After that it is simply a case of the payment of a debt, albeit with maybe some delay before paying. Just guessing, but perhaps a discount is given if payment is made promptly?

If I’ve got it right, then does this not avoid the provisions of the National Credit Act? Is doing it this way not regarded as the granting of credit? I guess the legislators must have thought of that, but how then would a straight cash transaction across the counter differ from a later payment?