Introduction

Shariat Finance deals with an “Interest-free Economic System” that helps to maintain a social equilibrium. It envisages eradication of social imbalance by encouraging lawful transactions. This is a new venture and is the first of its kind in Tamil Nadu. Interest in any form is averse to the Islamic way of life, declare the Holy Quar-an in unequivocal terms:

Seyad Shariat Finance Ltd. Is a non-banking financial company, approved by the Reserve Bank of India as a Leasing company and registered under the Indian Companies Act, 1956. It strictly adheres to the sanctions of the Shariah and ventures to pioneer various schemes to promote industry, to establish business and on Islamic Principles.

The moment one comes across the term : "Financial Institution" the first and foremost thing that strikes one's mind is “Interest”. One may wonder how a finance company can function without earning interest. The fact is, it is feasible, it has worked successfully in the Gulf and other countries and has proved to be viable beyond doubt. Such institutions have been established in our country too, in cities like Bombay and Bangalore and have been functioning quite successfully and profitably.