Islamic Financing (Wikipedia - Islamic Banking) is a term used for the reference of a financial transaction to be Sharia Complaint; meaning the Sharia allows select methods and Sharia prohibits the payment or acceptance of interest fees for loans of money (Riba, usury), for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles (Haraam, forbidden). Like a business model of alcohol, hedge fund, gambling etc.
Many people confuse the words "interest" and "service fee". The logic that service fee is nothing but a disguised method of allowing interest into the daily life, just doesn't make sense.
If that was the case than the entire trade hub that Makkah was will not be sustainable if no service fee will be charged to bring spices and other goods from silk road and other parts of the world.
Another disturbing part is people act like they are ready to submit the book report on first day of school without really knowing the subject.
I for one, isn't capable of giving fatwas or rulings so just like me you should also learn and educate yourself before selecting your choice regarding Sharia Compliance.
It has to be your decision. Your decision will be Sharia Complaint if you understand what Sharia is otherwise it will be assumed Sharia Complaint. Assumed because others told you by there assumptions and it's a bad circle which is now evident online with incorrect information on Sharia Compliance.
Like the first word revealed to Muhammad (S.A.W), we really have keep educating our self.
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