Questions tagged [riba]

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

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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 ...
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6answers
5k views

Difference between Riba and Rent

As stated in the title the question is about the difference between accepting riba and accepting rent. according to my understanding riba is when you give loan of some commodity to a person and during ...
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445 views

Why is interest such a bad thing? And is this forbiddance still relevant in the modern age? [duplicate]

I know this has been asked a LOT of times, but mine is slightly different (I believe). First of all, a little background about myself: Not a Muslim, probably somewhere between agnosticism, ...
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Student loan and kaffarah

Salam, I’m in really desperate need for help. Basically I have a student loan which have interest I repented from it but it’s the only money I have to live. I don’t live with family and they can’t ...
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Take interest and give away stuff instead [closed]

If I have 300 USD of interest in cash and a jewellery of 300 USD from halaal money, if I need cash right now, can I give the jewellery to charity instead and take the interest money?
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Does buying a phone in installments involve riba, given that the total cost is more?

I am planning to purchase a phone for £25 upfront payment and £25.52 and over 24 months it is £637.48 for the iPhone 7, however, the Buy It Now price is £539, I am aware this includes interest but is ...
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106 views

Is earning through the foreign exchange market (forex) halal? [duplicate]

Foreign exchange involves trading of different currencies in order to make a profit. Does the additional amount count as interest or is it halal?
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2answers
392 views

What to do to prevent or overcome bank interest (riba)?

I'm working abroad and my bank account is in USD currency. Nonetheless, the bank does not offer interest-free banking for some reason (said that its a system generated for each deposit I receive). ...
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315 views

Interest on the Savings account [duplicate]

Salaam, My question is about the interest the banks pay on the savings accounts that you maintain with them. The banks generally use your money lying in the account and invest it in the market, they ...
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2answers
193 views

Is it permissible to make a charitable donation in advance knowing that interest amount will be credited in my bank at the end of year?

Is it ok to make charity today (ie. in advance) knowing that exact interest amount that shall be credited in my bank account at the end of year?
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Is working in an investment bank halal? [duplicate]

Many students and graduates do internships and sometimes go further to pursue a career in an investment bank. I wanted to know: what is the ruling on working in an investment bank? I also wanted to ...
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1answer
1k views

Is intraday trading haraam if you convert losses to investments?

The name "intra-day trader" refers to a stock trader who opens and closes a position in a security in the same trading day. ... Day traders and intra-day traders are at the top of the risk spectrum. --...
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848 views

Is working in central bank haram which does not provide loans nor keep deposits based on interest?

So far I know that working in riba-based bank is not allowed. But for central bank, which does not provide loans nor keep deposits based on interest, will it be permissible to work on the central bank ...
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3answers
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Are shares Halal?

The company that employs me are offering me shares in the company. I pay in on a regular basis. I don't see anywhere about interest, but they will be subject to the market price of the company. Are ...
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1answer
333 views

What precisely does the “fallacious” fatwa of Muhammad 'Abduh regarding business transactions involving interest say?

From The Evolution of Fiqh (Islamic Law & The Madhhabs) by Abu Ameenah Bilal Philips (pdf), pages 119-120: Muhammad 'Abduh (1849-1905 CE) ... made a Fatwaa allowing Muslims to be involved in ...
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By the Quran or the Prophet's words only, may Riba be produced?

By referencing only the Quran or the Prophets words ascribed by cross-accusation, is it permissible to produce Riba? The assumed beneficiaries of Riba, the lenders, are of course condemned for ...
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Is Rent to buy allowed?

Recently I've been searching for a house online, of course I do not want to get involved in Riba Astagfir-Allah, so I started subscribing to all these "sale in execution" property auction websites, so ...
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8k views

Is it ok to buy a vehicle via an equated monthly installment (EMI)?

Is it ok to buy something via an equated monthly installment (EMI)? For example, I am planning to buy a vehicle which is of cost around 50,000(INR). If I can't afford 50,000 outright, I have other ...
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2answers
662 views

May one enjoy giving away money earned from interest?

Islam has a concept of not benefiting from interest. Many times I have seen on this site that if someone keeps his money in a bank, he may donate the interest money to charity in order to get rid of ...
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1answer
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What is the ruling on working in bank projects? [duplicate]

A company is likely interested in hiring me and I am actually going through several interviews. It is a software vendor company that develop products for testing, validating, and virtualizing services....
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1answer
174 views

What does “doubled and multiplied” means in the context of usury in Qur'an 3:130?

O you who have believed, do not consume usury, doubled and multiplied, but fear Allah that you may be successful. -- Qur'an 3:130 Question: What does "doubled and multiplied" means in the context of ...
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Zero Interest is causing me more harm than riba, is it the right choice? [closed]

I had to purchase a car, but did not wanted with riba, so the only option was to purchase a new car which I has at 0%, BUT monthly I have now to find a large sum of money which is causing me a lot of ...
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Is extra money out of love or fine over a loan regarded as Riba?

I am trying to find the answer for the below two scenarios. Let's assume someone has given a loan of $10000 for a period of 2 months. Scenario 1: The lender and borrower decide that for every extra ...
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1answer
603 views

Is it permissible to pay off my relative's loan with interest using zakat money?

I am planning to paying off my relative's loan with interest in bank with zakat money. Question: Is it permissible to pay off loan with interest using zakat money?
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626 views

Is it permissible to take on a loan with interest if the interest is paid up front?

I understand interest is Haram. My question is as follows: I want to lease a car (for 3 years) that has interest % but the company is offering me to calculate 3 years of interest and contribute/pay ...
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1answer
518 views

Is eating food from person who receives or pays interest haram?

I heard that eating food is haram in homes where the main income is from interest (riba) or the persons in the home pays it willingly. What I heard is right or wrong? Is there any specific authentic ...
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1answer
7k views

Is it permissible to work in a financial institution, if you work in a role that does not directly deal with riba?

I am a Muslim undergraduate student in the US who is contemplating career options and thinking about the finance track that a lot of undergrads gravitate towards (positions in investment banking or ...
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2answers
330 views

Is it sinful to give bribe to have the inaffordable taxes reduced?

We have two homes and we have rented them. The govt has now increased property taxes greatly. The property tax of two houses sum up to around sixty-thousand. I am a salaried person my father died, ...
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2answers
838 views

Is doing a course and pursuing a career in Algorithmic Trading halal or haram?

I want to do a course in Algorithmic Trading. The course itself does not talk about interest (Riba), but the applications of Algorithmic Trading may consider Riba as one of the factors. Is it ...
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47 views

Need loan to expland business operation

I am running a business and I would like to take loan from a bank to buy larger property for business expansion. The property reamins with bank as collateral until debt is paid off. Bank asks for 10%...
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71 views

Why is there no worldly punishment prescribed for dealing with interest?

It seems that interest ( riba) was said to be worse than adultery. I am wondering if that's the case, why is there no worldly punishment prescribed for ones who engage in interest but yet adulterers ...
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What should i do with riba money if it is already mixed with non riba money?

Assalamualaikum, I would like to ask what i should do with riba money that have been mixed with non riba money. Let's say for example we do some business and sometimes the transactions we do ...
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141 views

Is a UK university student loan riba, and if so, is it “necessary” if I have no other means to pay for education or to provide for my family?

I’ve heard student loans deemed as Ribaa. However, for a UK university student loan, the conditions are documented: How much you repay You pay back 9% of your income over the minimum amount ...
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59 views

Investing in halal company that is partnered with company planning to add leverage trading (involves interest) in the future

Salam all, I have invested in a cryptocurrency ICO (like an IPO for cryptocurrencies/crowdsale) after researching into it to find any sort of haram connections or actions taking place by the company. ...
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Giving land to developers who work there by money from interest based loan

We know that after giving our land to them to work with the developers are going to take loan from conventional bank (involving RIBA) to work on my piece of land. So my question is, is it halal to ...
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328 views

Is fiat currency devaluation via inflation a form of interest, making fiat currency based money haram?

Since almost all currencies used today are fiat currencies with no real intrinsic value, and since most fiat currency devalue, is it really interest when any money bearing this interest is itself ...
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940 views

Is Renting a property Haram if the rent agreement contains Riba?

The question is not about whether renting is lawful or not. The question is about the terms and conditions that come in every rental contract, and these are: If the rent remains unpaid for over 14 ...
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94 views

Can I make use of land that was purchased with an interest-based bank loan?

I have already bought a land. But to buy the land, I took some loan (portion of total money needed to buy) from a interest-based bank. Monthly basis I am still paying to the bank to return the money ...
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Investment in Islamic Business conglomerate that gives almost fixed returns

We have been investing in Heera Gold an Islamic company which aims to remove interest in society by allowing investment in their mainly gold export import business with an apparently profit sharing ...
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3answers
513 views

How do long term halal loans work with inflation in Islam?

I have a series of questions about Islamic loans. My first question is this: If person 1 loans 100k to person 2 and creates a contract which states that the agreed payback date is 25 years from now. ...
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3answers
1k views

Are you allowed to use saved interest money to pay interest?

Are you allowed to use interest money that you gained from saving accounts towards paying the interest fees for a mortgage? The mortgage consists of money I have borrowed to buy a house AND interest ...
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1answer
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Rent payments with redemption

Assalamu aleikum. I have a question regarding mortgage. One of our state banks provide a program for young families. You have to open a deposit account and make certain deposit payment every month ...
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3answers
8k views

If interest is haram, how can a Muslim get a house or a car in modern times?

If interest is haram, how can a Muslim get a house or a car in modern times? The prices these days are so inflated it is impossible for regular people like myself to afford the so-called basic ...
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1answer
707 views

Is it permissible to take commission for converting other people's black money to white?

I need to know if it's halal/haram to convert someone's money from bank. If someone has black money, by which I mean he has not paid tax to the government, can we convert it to white money (i.e. money ...
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Buying a house with interest?

I thought about it and if I want to buy a house in Germany, there is nearly no way that you buy it without interest. The exception is when you are wealthy. I know that bank interest is haram and I ...
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1answer
71 views

Is this sort of business classifies as Riba?

My situation requires me to buy a car. It is really mandatory, not for luxury purpose. I really need it because of the cold weather and for transporting my kids to school. I have waited so long to be ...
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1answer
129 views

whats about insurrance schemes according to islam? is it consider as interest or not?

MCB (Muslim Commercial Bank) Pakistan has started a scheme in which when one will go on hajj via there scheme he/she will be eligible for 4 months of free health (hadsaati) insurance, my question is "...
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1answer
85 views

Is the extra cost incurred by buying through monthly premium considered riba? [duplicate]

I am trying to buy a new Mobile phone in a shop, but I don't have enough money to buy it as cash. He offered me something else called Monthly premium. This Monthly premium is good for me, but the ...
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1answer
42 views

Indexed Linked Investment Certificates - haram or not?

I am aware that Riba (usury) and investing in specific markets (Alcohol, Porn, etc.) is haram. However I was wondering if investing in index-linked certificates are deemed to be halal..? These ...
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1answer
3k views

Is it halal to take a student finance loan for education?

Muslim students tend to take a student finance loan in order to go through university without financial strain, but I've recently discovered there is interest involved. According to my friend, some ...