Questions tagged [riba]

Riba means Interest. Riba is Haram (forbidden) in Islam, and it is considered a major sin.

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23
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4answers
105k views

How do Islamic banks make money if interest is prohibited?

I know that Islamic Banking involves the prohibition of interest based loans. But how do Islamic Banks make profit if they charge no interest?
18
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6answers
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Why is Interest such a bad thing according to Islam?

Source of quoted texts: islamqa.com. "Those who eat Ribaa will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaytaan (Satan) leading him to insanity. ...
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5answers
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How to cope with interest payed by banks?

People have saving accounts in bank to save money in a secure place. And Salary accounts are also a kind of Saving account. Banks usually pay a small amount of interest after particular interval. My ...
15
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1answer
1k views

How to buy and sell rare currencies without approaching riba?

Among collectors, there are people who collect coins and banknotes which are considered rare or unusual. Often these would be older currencies which are no longer produced (although they may still be ...
13
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3answers
1k views

Is making an “equivalent value” loan in accord with Islam?

In much of the modern world, currency is defined according to a "floating exchange rate." To the best of my knowledge, such an innovation was unknown during the time of the prophet, where the economy ...
12
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1answer
4k views

Can a Muslim borrow money from his own 401(k) plan, with interest?

I understand from this, and other related questions, that Muslims are not permitted to charge interest on loans. This brings up a question for me: In the U.S. many people have 401(k) retirement ...
11
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2answers
5k views

Why is Murabaha not considered Riba?

To take the definition of Murabaha from Wikipedia: This concept refers to the sale of goods at a price, which includes a profit margin agreed to by both parties. The purchase and selling price, ...
10
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2answers
224 views

Is Usufruct (where a loaned item produces something) a form of interest?

There is a concept called "Usufruct" (use fruit) where an item is lent, but it produces something during the period of the loan. I lease my two horses to Omar for a year while he uses my house. These ...
9
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2answers
1k views

Is this lease-like financial transaction allowed in Islam?

Let's imagine this as follows: A is in need of $10,000 cash urgently and finds no lender. He owns a house, which he had rented out to someone for $500 a month. A, driven by the need of cash wants ...
8
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1answer
6k views

What to do with the Riba (interest) money? [duplicate]

I have some interest money in my account and I recently came to know it is haram. I want to get rid of it. Please tell me the ways to spend it. Can I spend it as wedding or birthday gift to my ...
8
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1answer
607 views

Does the Hanafi school permit debtors to profit from loans?

Unlike a personal loan, which is typically taken and used in need, business loans are often taken with the express intent of profiting therefrom. Often, a business may choose to go in debt not ...
8
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1answer
452 views

Can I ask for repayment of service charges along with repayment of a loan?

I have a (non-interest bearing) account with a local bank. Typically this account charges a monthly service fee, which is waived as long as a minimum balance is maintained. If I were to agree to ...
8
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4answers
990 views

Should I take loan from the bank at 1% interest or be forced to pay 9% interest by failing to pay rent?

Something happened and I lost my job, and I didn't have enough money to pay the flat rent. Here in Sweden if your late in paying rent, what they do is they start to take interest on the rent until ...
7
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7answers
9k views

Is interest-based educational loan allowed?

Students from economically backward communities who opt for higher studies generally depend on educational loans, which are offered with interest, either by banks, developmental organisations, or by ...
7
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1answer
15k views

Why are mortgages haram?

I know taking loan and mortgage in haram in Islam. In UK, I am paying the amount of money as rent which I can pay as mortgage. If I pay as mortgage I will be the owner of that house after several ...
7
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6answers
10k views

Is real estate business allowed in Islam?

Is real estate business allowed in Islam? I live in the US and most buyers within the US buy a property with a mortgage loan, and I know anything to do with interest is not allowed. The only reason ...
7
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1answer
2k views

Is indirect help to a riba business haram?

I came across the question Working in banks in an Islamic country. According to my understanding of the answer by Shaykh Muhammad Saalih al-Munajjid, You are doing haram if you are helping someone ...
7
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1answer
5k views

Is it permissible to use cash-back credit cards and accounts?

My concern and question is, nowadays in the USA many credit cards companies are giving cash-back rewards. Some checking accounts (e.g. Discover) also give cash-back points and rewards bonuses for ...
6
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4answers
29k views

Is it Haram to work in Banks? [duplicate]

I was wondering would it be haram to work in a bank as the banks profits are a result of interest which is haram in Islam, if it is haram would that mean it would be haram even if a person acquired a ...
6
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2answers
650 views

What to do with interest paid by banks? [duplicate]

I am being paid interest into my bank account and not really sure who to give it to. Is it simple enough for me to donate it to the mosque or does it have to be donated to somewhere specific?
6
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1answer
471 views

What is the root of ربا?

ربا is undoubtedly haram as per the Qur'an, which says, "وأحل الله البيع وحرم الربا". This is almost universally translated as "interest" or "usury" in English. As per the Qur'anic Arabic Corpus, ...
6
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1answer
132 views

Asking for more than the agreed upon labor cost?

Today I rode a rickshaw. After reaching my destination, I asked the driver how much the fair was. He asked for an impossible fare and wanted extra money for "the waiting"(which was still too high). I ...
6
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2answers
273 views

Can I exchange notes to coins but for a lower amount?

There are situations when we are need of coins. At times, some touts like to take advantage of the situation and take a fee to the exchange from us. For example: For a bill of $10, they return only $...
6
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1answer
440 views

What happens in a Murabaha mortgage when the seller defaults?

The question Why is Murabaha not considered Riba? discusses the theoretical difference between Murabaha and riba. I would like to know if there is any practical difference. To be concrete, let's talk ...
6
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1answer
507 views

According to the Hanafi school, what goods are susceptible to riba al-fadl?

As far as I know, the prohibition of riba al-fadl is agreed upon by the four major Sunni schools. However, there does appear to be a clear difference of opinion as to exactly what goods are ...
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6answers
26k views

What is the Sharia ruling on working in a bank?

Nowadays, lot of students look for getting a job in banks. What is the Islamic view if a person gets a job in bank?
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5answers
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Is it permissible to lease a car?

Assalamu alaikum, Is it permissible in Islam to lease a car? Basically, I pay $200-$300 per month for a new or a good used car for three years. At the end of the term, I return the car to the owner. ...
5
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1answer
4k views

Is mining bitcoins riba? Is it haram for some other reason?

Bitcoins can be acquired by 'mining' them, where a computer generates codes and if they're valid you going that bitcoin. Is this equivalent to Rica/interest? Is it haram from some other means?
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6answers
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What is ربا (Riba) according to the Quran?

What is Riba according to the Quran? Please also state the verses in the Quran that hints to the term.
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3answers
8k views

Is it ok to pay interest debt with interest money?

Assalaamu aleikum, this query has been on my mind for quite a while now. I was wondering if it is ok to pay interest debts with interest money. For instance, I have a few friends who's bank accounts ...
5
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1answer
713 views

Are late payment charges considered as Riba?

Are late payment charges that may arise from being late in paying for bills considered as Riba. For example one misses a payment for their electricity bill, as a result the supplier demands that the ...
5
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3answers
4k views

Is it permissible for me to take out a bank loan to help someone, if I'm not the one paying off the interest?

I know that riba is haram in Islam. However, I need to know if it would actually be haram for me to take bank loan for helping my friend who is in a pathetic condition, if the monthly loan and ...
5
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0answers
50 views

what is the Islamic point of view about taking balance as loan in cell phones?Does that count in interest?

When we take loans, a particular network provides us loans but then they deduct more credit after we recharge.
5
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2answers
2k views

Is Online Forex Halal? [duplicate]

I've read a lot of articles, hubs, discussions about online forex trading being halal or not. And I got to 3 points/problems that if these (below) are solved, then it would be halal. Interest at ...
5
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2answers
198 views

Is it OK to teach banking related subjects in school?

Is teaching interest based banking system in school allowed for a Muslim teacher?
5
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7answers
19k views

Is Binary Option from an Islamic account (No riba and swap-free) halal or haram?

lately I discovered the Binary Option system, with a little bit of research I found companies who offer an Islamic Account to trade. However when I searched on the internet to find if this kind of ...
4
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4answers
10k views

Is interest entirely haram or can there be exceptions under neccesity?

A query in similar to a question posted on this site (Is interest-based educational loan allowed? ) (this may seem like a similar question, but from a clear angle). Allah says: “Those who devour ...
4
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3answers
3k views

Accepting money from non-muslims for charity

I have a doubt with getting money from non-muslims. Me and my friends just started a group ( a charity group to help and feed poor people in our area). Some of my non-muslim friends also have much ...
4
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2answers
215 views

Is it a sin to accept e.g. food from a relative who supports herself using riba?

I am in a grave confusion for a long time. I am well aware of the fact that taking interest or being associated with anything related to it is a dangerous sin. But my aunt (from my mother’s side) ...
4
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1answer
214 views

In grave doubt about my newly offered job

I am working as a research analyst in a capital market service firm in India. My current job is to study various companies in the capital goods industry (i.e. companies which manufacture construction ...
4
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0answers
47 views

My company sells software to banks, is this riba? [duplicate]

I recently started working for a software company that provides software and support to some banks and hospitals. Since I am not directly working with interest and not employed by the banks, would ...
4
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2answers
746 views

How is rent different from interest? [duplicate]

Say I have $100,000 cash and a house worth $100,000. I loan Sam the $100,000 cash for 10% of 100,000 ($1000) interest each month. Also, I rent out my house to Kate for $1000 rent per month. If Sam ...
3
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2answers
954 views

Is it acceptable to accept donations from haram money cards?

We all know that credit cards and similar money cards are haram, so would it be haram to accept donations from such cards?
3
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1answer
166 views

Shares in company which manufactures non haraam products

If I become a partial owner of a company via investment, i.e. I buy 100 shares in a company which gives me 1% ownership. If the company sells non haraam products, i.e. metal, but has a loan on which ...
3
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3answers
114 views

Is paying 25% more than you borrowed interest?

Sorry if this sounds silly. We can access a government university loans where we have to pay back 125% of what we borrowed. Is this considered interest? I.e. the amount we have to pay back is what ...
3
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2answers
64 views

Drawback of interest economically

Since Islam is a natural religion, What is the drawback of interset economically. Suppose a bank pays me 10% interset on my original, what is the ugly side of this?
3
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1answer
252 views

Is payment processing fee (paid by customer) interest if that fee become a gain for me instead of cost?

I take occasional payment from my customers using bKash (a mobile financial service provider in Bangladesh). I'm using their personal account option, which is mainly for personal transaction. I load ...
3
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1answer
133 views

Paypal charges a tax while transferring money from account to account - is this Riba?

Paypal charges a tax when you transfer money from one account to another. I am confused on whether is this Riba or not. If it is, what if I change the currency while transferring?
3
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1answer
164 views

Is making accounting software for handling e.g. interest haram?

If I make software that deals with credit, debit, assets, liabilities, equity, and stuff like that, and also for recording monthly payments, will that be haram? I ask this because people can choose ...
3
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1answer
186 views

Do we know if Allah prohibited all forms of riba with the children of Israel?

Salaam, In the Old Testament, we have the following verses that talk about riba: "You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything ...