Ayuuto/hagbad

[Barwaaqoiyobashbash]

Ayuuto has made me broke...I'm in a thousand dollars a month ayuuto with my mother's friends. The fudgers made me the last person because "I don't need it as much as they do"

Fudge!! same here,I was dead last,I was like what's point>??I can just save up on my own. -____-

[Barwaaqoiyobashbash]

Often times they're done with close associates who you see often. Also if one person cashes out and dips, its not a regular loan, where its a one on one dealing, ayuuto's usually include 5, 10, 12+ people. So if you refuse to pay up you just pissed off not one person but an entire group of people.

With Somali's word travels fast. If you rip off one group in an ayuuto it ensures you're never allowed into an ayuuto again. You're also a social outcast. It's the socialization of Somali's which ensures the trust of these loans.

So true.

[Barwaaqoiyobashbash]

Instead of Ayuuto or hagbad, I say Shalongo.

[zulaika]

i cleared my student load with hegbad...back in the day.

many thanks to my hooyo and her circle of friend from dugsi quraan.

[Lamagoodle]

BarwaaqoiyoBashbash,
Yapp, it is is called Shalongo.

Zulaika, that is one of the positive aspects of Ayuuto. You could use it for many purposes. It has developed from a few pennies to thousands of dollars. Men too are involved even though few might admit.


BTW, it is always good if you recieve it the first round. You could invest in something or even put in a savings account and earn some rent.

There are several dimensions worth exploring; Trust, project leadership because there is always a leader, its impact on family dynamics etc

[Daff]

BarwaaqoiyoBashbash,
Yapp, it is is called Shalongo.

Zulaika, that is one of the positive aspects of Ayuuto. You could use it for many purposes. It has developed from a few pennies to thousands of dollars. Men too are involved even though few might admit.


BTW, it is always good if you recieve it the first round. You could invest in something or even put in a savings account and earn some rent.

There are several dimensions worth exploring; Trust, project leadership because there is always a leader, its impact on family dynamics etc

LamaG salaan
Isn't interest Xaraam? I have two checking accounts and use one as saving account. Don't want to take a chance...

[Lamagoodle]

DafiyoMiriq,
How are you doing bro? Well, theoretically, any yield can be equated with an interest. The basics of economics and business science is that an interest is the cost of employing capital. This implies that profit margins in percentage could also be defined as interest rates. In todays world, economic activities are interconnected and my humble and honest opinion is that you cannot be free from the core mechanism of this; interest rates. If you live in a western country, chances are that there is an intrested rate paid on your rented apartment; the bus that you travel, your car dealer. The Bank that you are saving in is governed by interest rate approaches. So, it is a complex issue.

In several "islamic" countries, the term used in place of "interest" is cost which percentage wise is more than the interest rate. Weird. Sometimes this move makes muslims a laughing stock because there is no rational. Labels are important but one should also look beyond them and understand the contents of the labels.

I have been a witness to an occasion when a somali wanted a morgage, loan or something else. When the interest is calcualted, he/she shouts " I don't want to pay an interest rate"; the car dealer or state agent then calculates and comes up with a sum which he calls "costs" and the somali accepts: These "costs" are sometimes 5-10 times more than the costs of the interest rates. And these costs are actually accounted as interest rates.So, in theory, the somali has opted for usery.

I am not a theologist but I think we should differentiate between usery and interest rates. In most cases, people just talk about this issue without basic knowledge.

In my opinion, the Xawaalah business is an interest bearing business. I know that it is a neccessity but it is still a good illustrative example. I have seen several amateur somali wadaads who unconvincingly claim otherwise without having a profound understanding of the monetary mechanisms of the global economy.

You see, my friend, if you want to be free from the burdens of interest rates, you should settle in the countryside in Africa. If you live in the interconnected global economic world, it is impossible to avoid.

[Daff]

I am good Alhamdulilah..
I understand what u saying, but I would rather not take chances bro, if i deposit $100 in a bank I just want to get my $100 back no extras,
I also look for a zero APR if I need to take a loan whether i am buying a car or appliance etc, and pay it in full before the interest kicks in. I have seen some wadads who argue for or against this issue. Personally when I hear the word interest i run the other way

[Lamagoodle]

I am good Alhamdulilah..
I understand what u saying, but I would rather not take chances bro, if i deposit $100 in a bank I just want to get my $100 back no extras,
I also look for a zero APR if I need to take a loan whether i am buying a car or appliance etc, and pay it in full before the interest kicks in. I have seen some wadads who argue for or against this issue. Personally when I hear the word interest i run the other way

Gartay saaxib, But, remember there is NO FREE LUNCH. So called Zero APR are not actually a zero sum game.

Regarding deposits, there is nothing wrong refusing interest rates but how will you cover inflation and depreciation? Normally, the interest rate should cover these aspects.

About the wadaads (most of them I met or seen video of) do not know anything about the functioning of the western oriented global financial systems. As always they want to be experts on everything and the answer they give is always standard.

[greenday]

Do you know how trusting Somalis are walahi, a women asked me to withdraw money/check the balance for her because she didnt know how to use the ATM, no way would she ask a non Somali. Only a Somali would trust that information with others.

Ayooto comes in handy because you get the money without having to save when you're in need with out interest and no credit history needed

[Daff]

I am good Alhamdulilah..
I understand what u saying, but I would rather not take chances bro, if i deposit $100 in a bank I just want to get my $100 back no extras,
I also look for a zero APR if I need to take a loan whether i am buying a car or appliance etc, and pay it in full before the interest kicks in. I have seen some wadads who argue for or against this issue. Personally when I hear the word interest i run the other way

Regarding deposits, there is nothing wrong refusing interest rates but how will you cover inflation and depreciation? Normally, the interest rate should cover these aspects.
.

I am willing to take the hit rather than take the risk of dealing with riba.

Gartay saaxib, But, remember there is NO FREE LUNCH. So called Zero APR are not actually a zero sum game.

I would like to know how....

[Daff]

Do you know how trusting Somalis are walahi, a women asked me to withdraw money/check the balance for her because she didnt know how to use the ATM, no way would she ask a non Somali. Only a Somali would trust that information with others.

Ayooto comes in handy because you get the money without having to save when you're in need with out interest and no credit history needed

greenday let's talk next time you get your ayuuto

[gurey25]

Lamagodle still beating that dead horse i see.
i find your belief in xawalad as an interest bearing activity strange and illogical.
When you send $100 dollars to your loved one through Dahabshiil, Dahabshiil does not provide that $100 as a loan, they facilitate the service of tranfering that $100 to a particular person/location, for a fee.

I think the difference is obvious to most people.
i remember using the analogy of DHL/Fedex lat time and this did not dissaude you from your strange belief.
DHL provides a service of moving my parcel to the location i want for a fee, exactly the same as what Dahabshiil does with your money the difference is that money is not something tangible and it eases the distribution.

As far as i know when i want to send an Iphone or Ipad i bought as gift for someone and want to send it to them, DHL does not purchase the Iphone and lend it to me on credit and also provide an additional service of transporting it.
That would be a kool sidebusiness for DHL and profitable for them if they were given permission.
and i am sure Dahabshiil does not yet provide credit and loans to people as part of their regular business of xawala.

[gurey25]

Hagbad can be developed into something much greater.
You can further develop mohamed younises micro credit scheme by using hagbad , and removing interest.
You dont need to look into somalia there are alread programmes in Brazil, Indonesia and in many more countries where they have done just that.

[LiquidHYDROGEN]

^^^ Isn't hagbad a somali invented method of loaning, how did it reach Brazil? Don't tell me we got that from the Arabs too.