The Rejection of Interest-Based Loans among Muslim Entrepreneurs and Professionals in Finland

What is it about?

This article discusses religiously motivated financial behaviour among young Muslims in Finland. The aim of the article is to provide empirical knowledge of Islam-based views on rejecting interest-based loans and its implications among Finnish Muslims. The main research questions are: What are the reasons and motivations for rejecting interest-based bank loans? Are there alternative modes of financing? What are the rejections’ impacts on personal investments, including one’s business and housing? Data consist of eighteen Finnish Muslim entrepreneurs and professionals who reject interest-based bank loans. The data show that the interviewed Muslims’ rejection of interest-based loans brings along a more limited space to make financial considerations, and it may also have significant consequences for their children, the next generation. To circumvent the situation, the interviewed had used some or all of four alternative models for funding that were savings, interest-free loans from family and friends, credit circles and time-bound, interest-free payback period on credit cards._x000D_ _x000D_

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