If Riba/sood/usury/interest is haraam then why it is practiced in muslim countries? Just a thought I can understand that non-Muslims use interest on everything and it is their banking system because they don’t have religious obligations. What I don’t understand is why it is in Muslim country banking system.For example “Qaumi bachat” and other things why Muslims are using it in their system when its haraam.Just a thought why we as Muslims don’t come up with interest free banking?
Re: If Riba is haraam ?
muslims don't understand the religion fully........nor are willing to implement it..
Re: If Riba is haraam ?
Can you explain little bit more
Re: If Riba is haraam ?
just like salaat, siyaam which is FARD and a vast majority of Muslims do NOT perform these faraa'iz...sad! deen se gumraahii sabab hai :)
Re: If Riba is haraam ?
I know KKF deen sey gumrahi hai but individual level per its different but don't you think Muslim countries shouldn't be doing that.
Re: If Riba is haraam ?
Muslim Countries are run by Hypocrites...they love to call their counties Islamic Republics but there isn't anything ISLAMIC there! sad once again!
I know KKF deen sey gumrahi hai but individual level per its different but don't you think Muslim countries shouldn't be doing that.
Re: If Riba is haraam ?
True Islamic interest free banking requires a stand alone banking system that is in no way linked with any of the world banks, cause all the world banks follow interest based banking and any ties with them would make any bank, an interest based bank.
Biggest hurdle is to put together a stand alone banking system, that is almost impossible.
Re: If Riba is haraam ?
True Islamic interest free banking requires a stand alone banking system that is in no way linked with any of the world banks, cause all the world banks follow interest based banking and any ties with them would make any bank, an interest based bank.
Biggest hurdle is to put together a stand alone banking system, that is almost impossible.
But there are lot of muslim countries they can get together and do it.
Re: If Riba is haraam ?
But there are lot of muslim countries they can get together and do it.
off course they can. But they dont want to I guess
Re: If Riba is haraam ?
off course they can. But they dont want to I guess
But why? Any reason?
Re: If Riba is haraam ?
Peace UZ
Yes this is the real question ... why? The reason is fear ... should something like this come about then you can be sure of a global war ... also the people need to be convinced that what is currently in place is the way ... UN controls the countries to an extent. If a given country negates its debt others will have to allow it to do that ... those that go against US will be punished by sanctions ... Countries may wish to form together to create another banking system which will mean the ONLY way to do commerce with those countries that are still part of the World Bank will have to trade in REAL commodities. If enough countries agree to it then it can happen, but the moment this happens wars will begin ... because according to the remaining countries those countries have a debt to pay and would be ignoring it.
Re: If Riba is haraam ?
Thanks Psyah, I can totally agree with you.
Re: If Riba is haraam ?
As most of the posters have already replied to your question Why. I would like to explain a little bit about the system which is used in such system, specifically in Pakistan.
First of all, I am not saying its "right" .. But its arguable. As everything in Islam is based on your niyat.
The concept behind all these Bachat/Installments in Pakistan is based on "rent". How they present is they say that invest in qomi bachat/statelife and we will, with moeny from other people invest a huge amount in some property and you will get bonus over the time. Since you as a single person can't do such a big investment.
Now here is the catch. If you are lending your money to a farmer to invest his land the farmer would say i would do that but it Depends on the weather .. we might get a profit of 100$, 50$ or nothing. As long as your PROFIT ISN'T 100% sure this investment is legit. Now these companies, what they do they convince you that we would do the investment and your profit MAY VARY on yearly periods, based on the condition of country and other factors. But since we are mature enough, we gurantee you that we wouldn't invest in something which will have loss. (that is questionable).
Similarly, The concept of lease in Pakistan isn't that you will lease a car or something and then you would have to pay installements. Consider this, I have a car and i tell you that my car's cost is 100rs. But since you can't pay it in 100rs, you can buy it on installments but then you have to pay me 150rs. And you have to pay in 1 year. Now this thing is very tricky and has been discussed with lots of scholars. Its simple trade that you are letting your customer know the price of thing before hand, not in percentages, but in real value and it doesn't matter how much would he pay per month, all it matters is that he has to pay 150 by the end of year. There would be no up and down in the price. Its just like that you buy raw material from a village, process it and then sell it at higher price in different cities. In this case, the process is INSTALLMENTS.
Secondly, another way people present this RIBA in Pakistan is that we would "rent" you the bike/car/or the piece of land. For the time of 1 year, you will pay us monthly rent and by the end of the year, you can buy this car at the price according to market.
AGAIN - I am not saying that these things are LEGIT. But lots of scholars and maulvi accept and say these things are okay.
Another example could be that lets say you are very good at property dealings and you believe in your skills that you can sell property with 10% profits. But you don't have investment to buy a property. What you would do, you would ask your friends that to invest money for your company. They will chip in 10rs each, say collecting 100rs and you will buy the property. You will sell it at 110. keeping your proft of 5 rs, you can return 10.5 to each of your friend making them earn 5% profit on their investment.
Apparently it looks all same but at the backend, things and NIYAT is different.
Re: If Riba is haraam ?
There is really not much difference but a marginal line 
Thats how Islamic banking works here and when we buy homes in US its rent to own policy which is in fact interest free policy.
Re: If Riba is haraam ?
Islamic Banking is a misnoma ... there is no such banking taking place ... If a product is processed to add value or even bought in one region and sold in another the intermediate person has full liability and risk of the product ... instalments do not work like this and on the basis of qarz hasana instalments are not the basis for inflating value in any way at all.
Instalments are only given for charitable purposes, the product becomes the immediate property of the buyer after the agreement of instalments ... a bank that provides no interest and deals in no interest is Islamic ... show me one bank that does this and I'll join it.
Re: If Riba is haraam ?
Islamic Banking is a misnoma ... there is no such banking taking place ... If a product is processed to add value or even bought in one region and sold in another the intermediate person has full liability and risk of the product ... instalments do not work like this and on the basis of qarz hasana instalments are not the basis for inflating value in any way at all.
Instalments are only given for charitable purposes, the product becomes the immediate property of the buyer after the agreement of instalments ... a bank that provides no interest and deals in no interest is Islamic ... show me one bank that does this and I'll join it.
Psyah you seem pretty knowledgeable can you tell me little bit more about Islamic banking.
Re: If Riba is haraam ?
I'll let the mullahs sort out what RIBA really means (just usury or all interest), but a financial system just can not work without people being compensated for lending their capital. All the Islamic Republics around the world, even those as hardcore as Saudi Arabia, can't escape the economic reality of interest. On the other hand, usury is a crime, and its rightfully outlawed in most countries, Islamic or otherwise. Personally, I think anyone who wants to outlaw all interest is one sermon away from joining Al Qaeda, but that's just my personal viewpoint.
Re: If Riba is haraam ?
True Islamic interest free banking requires a stand alone banking system that is in no way linked with any of the world banks, cause all the world banks follow interest based banking and any ties with them would make any bank, an interest based bank.
Biggest hurdle is to put together a stand alone banking system, that is almost impossible.
But there are lot of muslim countries they can get together and do it.
off course they can. But they dont want to I guess
But why? Any reason?
Like a lot of other things related to our religion, they have not yet agreed to the definition of 'Riba'.