An Islamic personal loan is by definition an individual financing facility which is granted by an Islamic money lender in this case an Islamic bank providing with funds to a Muslim or a non-Muslim borrower who wants to apply Sharia rules when banking.

An Islamic personal loan aims mainly to provide with halal funds to a borrower who is keen to respect the principles of Islamic finance by not paying any interest (Riba) or not speculating with haram products or services.

An Islamic personal loan is usually underlined by existing assets which are first initially owned by the Islamic lender who returns the ownership of the acquired goods and services to the borrower, once he has fully repaid his loan.

An Islamic personal loan is certainly not dedicated to repay or consolidate existing bad conventional loans as sharia loans main objectives are to finance only projects who are underlined by clean and ethical assets.