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Islam and Interest

Started by Gee, August 12, 2005, 03:55:14 AM

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Gee

Salam,
  Can anyone explain to me vividly how interest is haram(forbidden) in Islam?
ano ta dabo tumbin giwa.Yaro koda me kazo an fika

neozizo

Salaam.
Although asking for clarification is a recomended and commended.
It should be noted that concerning matters of the Deen we should not just ask for "anyone's" opinion but rather we should refer to a qualified scholar(who is of the right aqeedah)
Especially on the topic of intrest,you need a scholar who is a specialist in these maters in order to get a satifactory and "vivid" explanation.

ummita

2 add 2 Zizo's comment there are alot of informations you can read from books and search onlyn n if u really keen on knowin den grab a copy of a book titled "RIBA" by MAULANA MOUDOODI. Islam vs Interest cannot be discussed vividly because it goes in too deep n if u dnt mynd readin all these, it may shed a lil light.

I cud giv a lil touch n brush, havin a LIL .................... unda Islamic Banking & Insurance, though not my field juss a side thing.

No doubt  interest in any of its form is HARAM. Interest is referred in arabic terms as "riba" (usury). It is one of d most diff subjects since tym immemorial 4 Muslims  as well as some scholars. There r so many discrepancies being said by so many ppl about Usury. Though d dilemma b4 d Ummah is NOT 4 d actual Command of Allah (S.W.T) dat prohibits d devouring of usury (riba) and/or 4 d strict condemnation of those who devour it. D problem in reality is concerning d correct definition of d term riba & its application. Howeva, it is best 2 conduct an indepth research 2 get a clear pic 4 ur own understandin.

VERSES OF THE QUR'AN:
Here are the verses on the subject of riba (usury):

Those who devour usury will not stand except as stands one whom the Evil One by his touch hath driven to madness. That is because they say: "Trade is like usury but Allah hath permitted trade and forbidden usury. Those who after receiving direction from their Lord desist shall be pardoned for the past; their case is for Allah (to judge); but those who repeat (the offence) are companions of the fire: they will abide therein (for ever)  2: 275
O ye who believe! fear Allah and give up what remains of your demand for usury if ye are indeed believers. 2: 278

O ye who believe! devour not usury doubled and multiplied; but fear Allah; that ye may prosper.  
Yusuf Ali's translation. 3: 130

O ye who believe! Devour not usury, doubling and quadrupling (the sum lent). Observe your duty to Allah, that ye may be successful.  
M. Pickthall's translation 3: 130.

O believers! Do not live on usury (compound interest) which is compounded over and over again. Have fear of Allah so that you may prosper.  
F. Malik's translation. 3: 130

For the iniquity of the Jews We made unlawful for  
them certain (foods) good and wholesome which  
had been lawful for them; in that they hindered  
many from Allah's way. That they (Jews) took usury though they were forbidden; and that they devoured men's substance wrongfully; We have prepared for those among them who reject faith a grievous punishment.  
4: 160 - 161

The Torah forbids the Jews from the devouring of Usury ("neshek"). See the Old Testament  Ex. 22: 25;  Le. 25: 36-37; De. 23:19-20; Ne. 5: 7/10; Ps. 15: 5; Pr. 28:8

Interest is present in credit cards, Bank Acc, motgages, loans and other financial transactions and for those using it, it carries a heavy cost.  For example if u wish 2 purchase a dwellin house, a freehold land or estate instead of doin it through a normal mortgage where u will have interest u cud do it through Islamic mortgaage which is interest free. There are three types of Islamic loans free from interest when purchasin a property.

1.Murabaha loan: where d bank buys d house & gradually sells it 2  d home buyer, with an additional profit rate tacked on.

2.Ijara loan, one of d most common, d bank buys d house & leases it 2 d buyer, who pays off d home, plus market-based rent 4 living there.

3. Musharaka, creates a shared-equity partnership b/wn bank & buyer 2 purchase d house & gradually transfer shares of its ownership

Regardin d original question: y interest is Haram & apart from d quoted qur'anic verses above a few point 2 consider is: wen inflation xsists in an economy, Interest is ONE of d fundamental causes of it. Wen building society, bank or money lenders want 2 lend money they r backed up wit d value of Loan wit some commodities value dat is stable; eg gold, silver, or anything of money's worth or valuable consideration to their countrys economy. Now wud one say money itself is backed up by gold reserves in d central bank? Simple No! Infact no country in dis world backs up 100% of issued currency by gold reserves, it is even less than 10% in most countries. Currency itself has no intrinsic value, it is just a piece of paper which cannot depreciate, that is why RENT is HALAL and RIBA is haram.

Anoda dimension is dat Islam is also a Social Religion & puts great emphasis on helping poor ppl. If I ask u now 2 lend me millions of Naira, without d benefit of a doubt, u will definately refuse so because u may not hav such an amount. Similarly, lenders only lend dat part of money which is surplus 2 them, Islam being a social religion encourages rich people 2 lend their surplus funds on a non-interest basis.

Islamic banking is fast expanding & has become grass roots in plenty Arabian countries & will inshallah grown branches; accepted nationedwide. Brothas & sistas r encouranged 2 start their financial transactions via Islamic banking and avoid Usury.

There r so many strong point 2 hold on 2, but @ dis tym........all I want is my bed.................(*yawns*)
Despite ur slammin, am still jammin!!!