DOHA: The idea of forming an informal association, popularly known as ‘committee’ to promote the culture of saving and facilitate interest-free loans is gaining popularity among Qataris and expatriates, local Arabic daily Al Sharq reported yesterday.
The idea is not new, and works in a very simple way.
People, especially young men and women, form an association and contribute a fixed sum of money every month to a responsible person, called treasurer, who is selected by the group.
Every month one member of the committee is provided with an interest-free loan to be paid in easy installments.
The trend is popular among employees and salaried workers irrespective of their monthly income. Monthly contributions may very from QR1,000 to QR10,000, depending on their income.
“It is simple and very useful. A committee can be formed in an hour by friends or relatives sitting in a majlis, for example,” said Mohammad Ziab, member of an association.
Those involved in such committees say it is not only easy to get organised and raise funds for useful purposes, but it also ensures easy, interest-free loans to people who do not want to get involved in ‘complex’ banking system and riba (interest) which is haraam (prohibited) in Islam.
Committee members use the pooled money for various purposes such as buying cars, furnishing new homes, meeting marriage expenses and buying holiday trips overseas.
Fawaz Al Anzi, a member of a similar committee, said: “It is good for those who do not like complex banking system. It provides interest-free loans to the needy without much formalities.” However, he said a committee without any legal status may face problems.
“When some members fail to make their monthly contributions due to, say, job loss or any other reason, the committee can do very little as there are no legal papers.”
An expatriate from Africa, who did not wish to be named, said: “I know one of my friends was a member of such a committee. He rued because he had to bear some losses when one member did not return from home after his annual vacation.”
The Peninsula
