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Why is Interest so bad?
Riba has the potential to corrupt a society in a way that zina and other crimes can never do. Many religious figures and philosophers have commented about the evil nature of usury (interest):
"To take usury for money lent is unjust in itself, because this is to sell what does not exist, and this evidently leads to inequality which ...
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Take a look at these facts:
receiving interest means you get money for literally doing nothing
paying interest means you need to come up with money regardless of whether your business is even making money
interest accumulates over time and often surpasses the original sum you lent
for example: at a rate of 8% over 10 years the interest sums up to 115% of ...
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It's not just in Islamic Finance that interest is seen as problematic; the same holds for Christian Finance. For example in the Shakespearean play, A Merchant of Venice, Shylock 'hates' Antonio, a Christian who lends out money gratis (freely) as his religion does not allow usury (interest). Of course this is some time ago. The secular & commercial Europe ...
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There is no clear-cut definition of what riba is in the Qur'an. The understanding based on the reading of verses is that, it is some form of an increase in a loan, that might end up doubling or quadrupling the debt, and that it is not to be confused with trade/sale. The ahadith are where you will find a more detailed explanation of the term.
There are four ...
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In and of itself, mortgaging isn't haram in Islam; there are a number of hadiths (e.g. this one recorded in Bukhari) indicating that the prophet himself engaged in mortgaging transactions. The same can be said for the taking of loans.
The problem with mortgaging comes from the fact that such loans often involve interest. For example, if you receive a ...
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As you mentioned in your question ,verses and hadiths which prohibits usury ..
After I asked a Sheikh, he told me to try as much as possible to stay away from usury, and do all what you can to do so.
I would like to
remind you of Prophet Muhammad's speech peace be upon him:
whoever leaves something for Allah's sake , Allah will reward him with a better ...
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Murabaha is, in its essence, just a pair of shari'ah-compliant trades:
The bank purchases a good at market value.
The bank adds its profit margin and resells the good to the end buyer
Adding a profit when reselling a good is rather fundamental to trade, and can hardly be considered riba; God has clearly permitted one and forbidden the other. The only ...
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As mentioned in OP, those who devour riba are clearly condemned; the Qur'an is very clear on this when it says "…Allah has permitted trade and has forbidden riba……".
The Qur'an also clearly tells the believers "…do not cooperate in sin and aggression…"; when it is known that taking riba is a clear sin, then knowingly and ...
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Now the point is as follows as long as you don't have direct deal with riba your earnings are halal. But if you somehow deal or help for riba business your earnings are haram. This means if you don't have direct contact with riba all you do is halal.
I found a fatwa (Arabic) saying that you can even work in a bank (that deals with riba) if you work in ...
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The fatwa in question is highly publicized, and is the basis that many so-called modernists allow interest-based loans. It may prove to be very difficult to find the actual text of the fatwa since it appears to be merely rumored by the Khedive (ruler of Egypt and Sudan at the time, who had major disagreements with Muhammad 'Abduh), but is nowhere else to be ...
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According to the Hanafi madh'hab, it is permissible to work in a bank as long as the job does not entail direct involvement in something haram (e.g. processing interest-based transactions). So, for example, working as a driver or a guard would be acceptable, since driving and guarding are fundamentally halal activities.
Any money earned therefrom would ...
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Question:
Is making an “equivalent value” loan in accord with Islam?
Answer:
It is not permissible for the one who borrows money from anyone to
commit himself to repaying the loan based on the value of the currency
at the time when the loan is repaid, rather he must repay the loan
with the same value as it had at the time he took it.
...
...
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According to all known Arabic vocabulary dictionaries such as Lisan Al-Arab, Mukhtar Al-Sehah and Al-waseet the root of ربا means to grow and not even a single one of them mentioned anything about having the meaning of doubt.
The answer you refer to in your question is absolutely wrong and it does not refer to any trusted source.
So there is no sort of ...
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You must know the difference about 2 things, Loan and debt . The both kinds have 1 common factor , interest is forbidden , however there is a big difference between the 2 kinds . First of all , the first kind is done as a good deed, to help someone out , as stated by this narrative ( من نفس عن مؤمن كربة من كرب الدنيا ,نفس الله عنه كربة من كرب يوم القيامة) ...
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After reading this islamqa, I have decided to withdraw from the interview process. Today was my last interview but I sent an email this morning to cancel it.
They called me telling me I was the perfect candidate for them and tried to help and understand my reasons which I did not explain in my withdrawal email. After explaining that as a Muslim, I cannot ...
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Some scholars feel that purifying ones own wealth by donating such money directly to the masjid is a bad idea, since the masjid is a house of God and should be built and maintained using only pure funds. Similarly, it shouldn't be used to print Qur'ans.
Rather it should be given to the poor and the needy, or any other charitable purpose. This is, I ...
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There was an episode of Friends in which Monica and Phoebe debated whether it is possible to ever do something that is 100% selfless. In the end, it was decided that it is extremely difficult, if not impossible because the mere act itself could bring happiness or karma or what have you to the person.
I don’t know sharia law inside and out, but I strongly ...
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Basically, such a lease is just a contract in which one sells the right to use a product (the car) rather than selling the product itself; in Islamic law such arrangements are known as ijarah.
While there are some difference of opinion on the specifics (e.g. defined length of contract or onus of maintenance), ijarah in general is considered permissible by ...
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The contract is originally a rent contract with one term. The term is after paying all duties(your monthly payment and other things) the landlord will sell it to you by Hiba. This is accepted by all Ulama.
Here is the English article about this
And If you can read Arabic you go to this book الاجارة المنتهیة بالتملیک و صکوک الاعیان الموجرة/ دکتر منذر قحف ...
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The only problem with present day banks are the interest/usury (riba) that is involved.
If you have no direct involvement in any riba transaction, then it's fine to work there.
'Abdullah bin Masud and Jabir bin Abdullah both reported Rasolullah
cursed the accepter of interest and its payer, and one who records it,
and the two witnesses, and he said:
...
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I used to work in them myself but the truth is, whether you deal with interest directly or not, you are aiding and facilitating it- It is haram
'Abdullah bin Masud and Jabir bin Abdullah both reported Rasolullah cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal.
Would it be ok to ...
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As far as I studied some well-established reference, and discussed with some scholars (yes, they are hanafi), (i'll update my answer asap i get hold onto related on-line reference)
if you have no other feasible/safe way to store your money in a interest-based bank,
you should take out the "riba" amount asap, to separate it from your halal money,
use it ...
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The critical point of the question is that "more than the agreed upon labor cost" was demanded. However, in the question there is not a single sentence stating that the fare had been discussed ahead of time beforehand. I did not see evidence you asked him "how much will it be?" at the very beginning; it could very well have never happened.
If the price was ...
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According to a fatwa by Sheikh Muhammed Salih Al-Munajjid. It seems that buying shares in companies which have taken out loans is not advisable.
Here is an extract from the mentioned fatwa:
Companies should also avoid using riba-based loans in order to set up
production lines and factories; that should be achieved by using cash
and the money of the ...
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Riba, translated as interest or usury, is strongly forbidden in Islam to the extent that there is a declaration of war from God and His Messenger against the one who practices it (Holy Qur'an 2:278,279).
However, the concept of Riba is a lot wider than is commonly understood. The term Riba need not be restricted to any amount charged on cash, but can also ...
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Riba (interest) is a factor that directly benefits the lender. The extra amount you are collecting is the service charge which in turn is demanded by your bank. This amount is neither demanded by you directly, nor does it benefit you directly.
Since most likely this is not riba, two things should be obvious:
To avoid misunderstanding you must discuss these ...
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Most Islamic companies do deal with shares, so it's halal. It is haraam if the company is selling haraam products, which I doubt is your concern if you're working for the company. So, I assume you're worried if it's Riba.
Riba is basically what happens when you lend someone a product at a fixed value and then request higher than the perceived value for it.
...
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the idea behind progibiting usary primarily was to discourage the holding power of money. to be really honest i find islamic banking as more or less the same thing its just playing with the concepts to do exactly the same thing " considering that compond interest is not prevalent any more .....conventional banking and islamic banking are doing the same thing-...
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Riba is Haram.
Here, in my country, they offer online banking. I think this happens all over the world. So, I can create as much as accounts online. Then I have created a separate account for Riba and each month I transfer the interest to that virtual account via online banking. So, Riba doesn't mix up with my money and I don't need to care about that Riba....
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At a glance, there seems to be no problem in your definition of leasing. You (the customer) pay a rent (in Arabic it means إجارة) on a monthly basis and return the vehicle once you're done with the period.
But the reality is not the same. When implemented, leases or ijaarah don't work like this. There is a lot of fraud or cheating taking place and interest ...
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