Q: What does it mean by ‘Al-Amanah’?

A: In arabic, Al-Amanah means ‘ the fulfilling of a trust’.

Q: Is it really interest-free?

A: Yes, all the loans are interest-free. However, it is a member only service and there are limits and certain conditions to get an interest-free loan which are discussed later.

Q: Who can become a member?

A: Anybody who agrees with the principles of Al-Amanah can become a member by submitting an application here.

Q: What are the conditions to become a member?

A: All members have to pay a non-refundable  membership fee of $10/year  and have minimum savings starting from $50/month.

Q: What are the benefits of membership?

A: You can save with Amanah (starting at $50/month), you can grow your savings by investing with Al-Amanah (with a risk of loss sharing) and you can get interest-free loan for personal need or small(halal) business.

Q: Is membership free?

A: No.

Q: How much is the membership fee?

A: The non-refundable membership fee is $10/year which is less than a dollar per month.

Q: Is it registered?

A: Yes, It’is registered as a not-for-profit business in the state of South Carolina.

Q: What are the conditions to get an interest-free loan?

A: You can get a interest-free loan for personal need or small business. For personal need, you have to show proof of need and your inability to pay. For business loan, is has to be Islami Shariah Compliant (Halal) and State/Fed registered.

Q: How much I can get as interest-free loan?

A: The limit for interest-free loan is a factor of the age of membership and the savings balance. The limit is calculated as-

Membership Period

Maximum Loan Limit

<1 year

3 X balance*

1 – 3 years

4 X balance

3 – 5 years

5 X balance

> 5 years

6 X balance

*The balance mentioned here is the total balance if the member makes an approximately equal amount every month. If any member makes different monthly payments, any payments made 20% higher than the average payment amount will be excluded in calculating the adjusted average which will be multiplied by the number of payments to calculate the total adjusted balance. 

Q: What are the loan return/repayment deadlines?

A: The loan return period is directly related to the loan amount and could be calculated as-

Loan Amount

Maximum Return Period

Paid in Installment

<$1000

9 months

$1000-$1999

12 months

$2000-$2999

15 months

$3000-$3999

18 months

$4000-$4999

21 months

>$5000

24 months

Q: How can I repay the loan?

A: The loan can be repaid in installments. The first installment is due within 60 days of receiving the loan.

Q: Can I get interest-free loan to buy a house?

A: Yes, as long as it is a primary house (not a rental or investment property) and the loan amount is within the maximum personal limit.

Q: Which are classified as personal needs?

A: Anything which are not earning profit such as rent, grocery, tuition, medical/utility/credit card bill, buying a vehicle or apartment for living etc.

Q: Can I invest with Al-Amanah?

A: Yes, you can invest with Al-Amanah to grow your savings. We do not anticipate loss but you have to sign a profit/Loss Sharing agreement in order to invest with Al-Amanah as a basic Islamic principle.

Q: Can I get a business loan interest-free?

A: Yes, as long as it is Islamic Shariah Compliant (Halal) and the loan amount is within personal maximum limit.

Q: Can I repay the loan in installments?

A: Yes

Q: Can I repay the loan in Cash/one-time payment?

A: No

Q: How much I can save with Al-Amanah?

A: Savings start at only $50/month and there is no maximum limit.

Q: Is it only for Muslims?

A: No, although is is based on Islamic concept but it is not limited to Muslims only. There is no discrimination for membership based on race, color, religion etc.

Q: Is it a religious organization?

A: No, it is a financial organization based on Islamic concept of business and finance.

Q: Is it a bank?

A: No, but you can save, invest and get loan at Al-Amanah.

Q: Is it a credit union?

A: No, but it provides loan 100% interest-free for personal need and small business.

Q: Is it an US only service?

A: Yes, you can become a member from anywhere in the world but in order to get a loan there should be at least one borrower.co-borrower with Social Security Number (SSN).

Q: How to make a payment?

A: Payment could be made only via PayPal. Please add a note for each payment. Please visit here to make any payment.

Q: How to apply for a loan?

A: Please visit here to apply for a loan.

Q: What are the eligibilities to get a loan?

A: Eligibility: A member of the trust shall be eligible for the interest-free loan if-

                           i.          The applicant is a standing member (member for at least 90 days) with no disciplinary violation in the last three months.

                         ii.          He has no unpaid loan balance, did not freeze the membership, did not withdraw any fund, or did not miss any payment (late payment) in the last 90 days.

                       iii.          At least three months (90 days) have passed since he repaid the last loan balance i.e. there is no loan balance due in the last 90 days.

                       iv.          He duly fills the loan application form and provides the credit score and social security number. The trust holds the right to check the credit history of the applicant.

                         v.          If a member does not have Social Security Number (SSN) or credit score while applying for a loan will need a standing member who has an active SSN and resides in the US as a co-borrower.

                       vi.          He clearly mentions the reason for borrowing in detail and submits a plan (whether in installments or full amount) for repayment including a specific time frame.

                      vii.          He provides a verified document of proof of income and proof of the need or if a verified proof of need is not readily available- a hand written and signed statement would work- provided that he has to provide the documentation whenever it is available.

                    viii.          The trust has sufficient fund.

Q: What is the process of getting a loan?

A: Procedure:

                           i.          The Administrative director examines the application for its completion and passes it to the executive board if all required fields are completed.

                         ii.          The executive body approves the application, the administrative director signs the form within seven days.

                       iii.          The finance director will issue the loan within a maximum of seven days from the day it got approved through PayPal or electronic transfer.

                       iv.          The loan recipient signs a receipt of the cash form.

                         v.          The whole procedure shall not take more than two weeks for administrative processing in total.

                       vi.          If adequate fund is not readily available, a hold will be placed on the application and will be approved as soon as the fund is available.

Q: Can I get a loan for personal/family business or to invest somewhere else?

A: No. Business loans are allowed for Islamic Shariah compliant and registered business entities. You can invest with Al-Amanah but won’t get a loan to invest somewhere else.

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