Quote: Why is interest forbidden in Islam?

During the time of the Prophet Muhammad (peace be upon him), many people made gains by lending money at extortionate

rates. They made financial gain at the expense and misfortune of others. As a result, the payment of interest was forbidden

because it was unjust.

Islam teaches that money must be used in a useful way. You can�t make money from money. But you can generate wealth

through legitimate trade in goods and items. But you must share the risks and rewards.

Quote: If my Islamic Account is interest-free, how does it work?

Your money is kept in accordance with Shariah. This means that we don�t use the money you keep with us for any interest

based business activities.

As with all bank accounts, you should manage your Islamic Account in a responsible way. If you do go overdrawn we will

charge you a fee.

Details of these charges can be found at: http://www.lloydstsb.com/rates_and_charges.asp

You can also call us on 0845 6007 786 or visit one of our branches.

Because charging interest is prohibited in Islam, we don�t offer an interest-based overdraft on the Islamic Account.



I do think it seems they are saying non-islamic banking is not ethical, buy conforming to this "Islamic Banking" - however I think it is well within human rights that anyone regardless of faith should be able to use this service - I think in the European Court of Human Rights, the latter would win.

