business in islam

[babar0074]

Re: business in islam

Thanks everybody for joining this discussion and putting valuable comments but by virtu of this forum i want to discuss way of business in islam. for example, presentation of goods, honor of your words and contract, return of goods, quality, mearurement, quantity etc.
riba is also an element but my focus is on sell and purchase.
thanks to all in advance

[aahmed]

Re: business in islam

Usury is excessive, crippling interest. When you buy a house at 3-5% or a car at 3-5%, that's interest and not forbidden in Islam. What Islam forbids is USURY, that is when businesses know that the customer is in need and as such leverage that need by charging exorbitant amounts of interest, THAT is what Islam forbids. Or going to a loan shark type of person where again, they know that you have a need and they leverage that by charging 20-30-50% interest, THAT is usury and forbidden.

Regular interest is part of business and not forbidden.

[mAd_ScIeNtIsT]

Re: business in islam

@Fraudz

^ but if it is not just a loan but a financial service, with charges for that service, it becomes a diff thing. I mean even ‘Islamic’ mortgages are deriving benefits to the entities providing such mortgages, and by the hadith posted above, they are unislamic no matter how they spin it.

Or you can just go with an approach that a financial service which is regulated is diff than a personal loan back in the day.

An Islamic mortgage does not involve money being lent. It is a way of financing that is simply an alternative to a loan.

Financing puchases is not forbidden in Islam; but financing them through giving someone money and expecting be be paid back a greater value of money is forbidden.

In other words: of all the means of profitable finance; Allah has forbidden one, and that is interest bearing loans.

---

Personally, the one exception I make is inflation rate interest. If you get inflation rate interest on a loan, the money you get back is worth exactly the same as the money you lent so there is no benefit or profit to you. So the only 2 loans I have are a 4 year 0% car loan and an inflation-rate student loan. On the latter, I will pay back the same value of money as I borrowed.

[mAd_ScIeNtIsT]

Re: business in islam

@aahmed

Usury is excessive, crippling interest. When you buy a house at 3-5% or a car at 3-5%, that’s interest and not forbidden in Islam. What Islam forbids is USURY, that is when businesses know that the customer is in need and as such leverage that need by charging exorbitant amounts of interest, THAT is what Islam forbids..

The hadih I posted shows that any profit on a loan is forbidden, regardless of scale.

[Mr_Fraudia]

Re: business in islam

@mAd_ScIeNtIsT

An Islamic mortgage does not involve money being lent. It is a way of financing that is simply an alternative to a loan.

financing that is an alternative to a loan? yaaar call a spade a spade..its a loophole approach, if we dont call it a loan and we dont call it interest but instead call it investment and call it profit or fees respectively then we are okay. Surprisingly the “profit” rate moves up and down with interes rates..makes ya think eh.

[Mr_Fraudia]

Re: business in islam

babar

here is an interesting article (aside from the fact the writer notes Pakistan, Turkey and Iran as ‘arab’ countries) and focuses on ‘fundementalists’ ..ut good look at islams approach to business.

Islam in Office
If fundamentalist parties take power, how will they do business?
http://www.msnbc.msn.com/id/13529579/site/newsweek/from/ET/

[babar0074]

Re: business in islam

thanks Fraudz

[babar0074]

Re: business in islam

?

[_Iraj]

Re: business in islam

as far as i know that** hazrat umar** gave the right laws defining the business transactions... it was all implemented and practised .