Salam,
Can anyone explain to me vividly how interest is haram(forbidden) in Islam?
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.
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*)