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

Bibliographic Data

ID13061300
AuthorsTuomas Martikainen (0000-0001-8109-1781, University of Eastern Finland, corresponding author), T Brekke (0000-0001-7706-6743, OsloMet – Oslo Metropolitan University)
Year2022
Volume12
Issue2
Pages212-227
Publication date2022-12-12
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Muslims in Europe (JOURNAL)
Journal identifiersISSN: 2211-792X • E-ISSN: 2211-7954
PublisherBrill (PUBLISHER • NL)
DOI10.1163/22117954-bja10074
OpenAlexW4312218229
LanguageEN
Citations received3
References cited6

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 the implications of this among Finnish Muslims. The research questions are: What are the reasons and motivations for rejecting interest-based bank loans? Are there alternative modes of financing? What are the impacts of rejection on personal investments, including in business and housing? Data were obtained from 18 Finnish Muslim entrepreneurs and professionals who reject interest-based bank loans. The data show that their rejection led to the scope for financial arrangements being more limited, and may also have significant implications for their children, the next generation. To circumvent these consequences, those interviewed used some or all of four alternative models for funding: savings; interest-free loans from family and friends; credit circles; and the time-bound, interest-free repayment period on credit cards

Actuarial science · Bank credit · Business · Credit card · Economics · Empirical evidence · Financial system · Interest rate · Islam · Islamic finance · Payment · Scope (computer science · Islamic Finance and Banking Studies · Microfinance and Financial Inclusion · Religion, Society, and Development · Accounting · Finance

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