In this day and age, there are many businesses requiring interest. For example, buying a home requires many in USA to get a loan which has interest written all over it. This is also true of car purchases or starting a business or opening a bank account or a student loan.
Is the interest that one gets on the above item considered haram? Or is it acceptable only because its inherent in the society?
I am puzzled myself. I got a qoute from one lender for mortgage @7.75 and my mintly mortgage payment would be $780.00PM. I was feeling guilty and after a lot of inquiring around, I found one Islamic banking guy who, after going thru the same process of credit search, told me that my montly payment would be 1190.00PM I asked him why so high?? He replied that they base the loan on the fair value of rental market.
Ther est of the terms of the loan are just about similar.
Now tell me why is necessary for me to pay almost $410.00 extra for the same property???
While Islam may prohibit interest (which in my view is usury and not simple interest, but I may be wrong) Islam also equally prohibit one to become prey of oppertunistic ideologies and become oppressed.
I need someone to explain this to me too.
Interest is prohibited in any which way shape or form. Im not gonna go into details, except to quote the Quran where Allah SWT says that "whoever deals in interest, has waged a war against me"
Bank of Kuwait has arranged for interest free loans for home buyers in the NY area, and there are numerous other such organizations searchable on the web.
Baykhatr....while u pay less on ur loan with interest, wouldnt u be paying it for a longer time and hence, end up paying more in the long run?
Akif.......>>Baykhatr....while u pay less on ur loan with interest, wouldnt u be paying it for a longer time and hence, end up paying more in the long run?<<
Akif sahib, I said the rest of the terms for the loan are almost the same. Even if I will be allowed some relaxation in the duration, or term of the loan, where will I bring $1190 to pay for it??
The financial institution you mentioned, may provide interest free laon, but honestly, have you ever gotton a qoute from them yourself??? There are maney others who advertise on internet also. You will end up paying more. Because they all base their calculations on 'rental fetching' concepts. This may be Islamic, but it certainly much more than one can afford.
It may not make any differences to riches who will sort their dunya and akhraat both by borrowoing from thes non-interest based Islamic institutions, but what about ordinary people, like me??
Interest meant as a usury, where one is skimmed to the maximum, like say borrowing on credit card etc, where one is supposed to pay 24% must be non Islamic. But an apr, on home loans, which fluctuates with markete, What is wrong with that???
You may wanna call it commission, as the non interest based instituation would like it. One has to look at the root of the issue and not the buds.
wasalam
Al-Tirmidhi Hadith 2828 Narrated byAbuHurayrah Allah's Messenger (peace be upon him) said, "On the night when I was taken up to Heaven I came upon people whose bellies were like houses and contained snakes which could be seen from outside their bellies. I asked Gabriel who they were and he told me that they were people who had practised usury." Ahmad and Ibn Majah transmitted it.
try to avoid it!!!!
A Person too BE!
Baykhatr....ur monthtly payment depends on how much u put down. So why not wait a few months and save up some money so u can put up a bigger down payment which will bring ur monthly payments down? Bottom line is, u cant justify paying or receiving interest, no matter what situation you are in.