collective saving(Jam3iyat)

[Arabian Princess]

recently many people have been joining those collective saving groups which helped many people to pay thier loans back, save to build a house and even get married.

The system works this way, a group of people come to tgther abd pay each month a certain amount of money. At the end of each month one member of the group receives tha amount pad for tht month and there it goes until the last member receives the amunt paid.

This system helped many people but others questions its risks since it is all based on mutual expectations that every member will pay the amount required but a member could come one day and refuse to pay (sometimes there are legal obligations signed)

What is ur opinion about those groups? do you support them? do u think it will help solve many of the finiancal problems people faceing?
Lets hear your thought about such an mportant phenomena going on nowadays.

[Bimzoori]

Indeed, Aarbian, it has become a very common phenomenon here in Oman, escpecially now that people are becoming more aware of usuary (riba)..

I think problems may arise when someone decides to quit the group after recieving his share of money (does it happen???) I think this i why you have to make sure that all the indivuduals in the group are responsible and would pay the amount due on time..

[IceTea]

I think its a good idea, many people find it useful and get rid of the high bank interest rates in addition to it's religious point of view. But as you said the risk is avialable and garantee standards and regulations are not high.

I'm a member in one of this "jam3iyat" but I didn't take my share yet, I hope to get it this year "inshallah" :).

[Don Khaled]

This is an excellent idea ofcourse and I fully support it. After all, you are doing the good to people.

[Arabian Princess]

I think one of the advantages of this (jam3iyat) is that they started with people who do not want any extra money and they want to help the community and when the cause is right it gets blessings from Allah.

But the risk is still there, since banks started losing some people are spreading rumores that teh bank is sending people to joina nd later not complete the loan inorder to increase its risks but I do not think it is true.

If anyone know if the person entering those organizations d they have to sign any documents that could send them to court?

[patriot]

salam,
well yes it is a good idea indeed, and it is kind of not safe but the person who recieves his part doesn't recieve it till he/she provides calatheral, like a house or a car, and these documents will be held till he/she settles his/her debts...

the risk araises here if the person says no i can't pay no more,and he gave his house as a calatheral, then it will be difficult to kick him and his family out of the house

[Arabian Princess]

good point patriot,
I also heared that not anyone can enter this Jam3iya ..
he have to provide two people who are refrences to him. Those people will at leats have an idea if he is honest or not.

[Namika]

its a good idea but i don't support it for many reaons...

[list=1]
Some members refuse to pay at some point and just quit.
Some members quit after getting their share of the money.
Some members over take their turn asking to get money first even if it wasn't their turn.
[/list=1]

The idea of having Jam3iya is good if it was among ppl who understand each other and know each other very well, which means family.... cuz at least you know that a family member can not betray you .....