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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 ...
19
A traditional bank makes money by lending people money and charging interest on that. And they provide various services and charges money for that also. Again they take money from other people and pay them interest, with lesser rate.
An Islamic bank also lends money to people. But it is kind of a business agreement between the bank and the borrower. The ...
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There's no doubt that this interest is ribaa which is prohibited by Islam as a form of thulm (wrongdoing). So the question is, how do you deal with it? Who's money is it, anyway?
There are two opinions of the scholars on this (source: Islamic finance class, don't have AMJA fatwa or anything like that on me):
Don't touch it: It's interest. Just leave it in ...
11
Dealing with riba (interest) is a major sin in Islam. There is no ifs and buts. Be it educational loan, house loan or even marriage loan. In Qur'an and Sunnah, you find stern warning against riba.
Allah says in Qur'an:
Those who consume interest cannot stand [on the Day of Resurrection]
except as one stands who is being beaten by Satan into insanity. ...
10
It depends. If the bank doesn't deal with Riba (interest), it is absolutely permissible for him to work there.
However, it is not permissible (according to majority of the Sunni scholars) for a Muslim to work in a bank that deals with Riba, even if the job that they are appointed to do is not related to the Riba-based dealings. This is because they would ...
10
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 ...
9
Good question!
I think with rare currencies that are no longer traded for their face value, but rather for their collectible value, the rules concerning riba and currency don't apply anymore. This is from a discussion on islamtoday:
However, rare notes and coins have – according to the customs (`urf)
of the market wherein they are sought – have ceased ...
7
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 ...
6
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 ...
6
In Islam buying and selling is mubah. See this hadith:
Messenger of Allah (pbuh) said: "Both parties in a business
transaction have a right to annul it so long as they have not
separated; and if they tell the truth and make everything clear to
each other (i.e., the seller and the buyer speak the truth, the seller
with regard to what is purchased, ...
6
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 ...
6
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 ...
5
The credit card itself is a contract between the issuer and client - a merchant has nothing to do with it. As far as the merchant is concerned it is simply a payment made on behalf on the client by the card issuer. There is no interest involved, and whatever percentage the card issuer takes from the merchant for facilitating this transaction counts as a ...
5
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 ...
5
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 ...
5
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 ...
4
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 ...
4
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 ...
4
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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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) ...
4
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 ...
4
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 ...
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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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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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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 ...
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