altho interest is considered haram in islam
some people say “its okay to give it, but its not okay to take it”
as far as i have read its haram to take/give interest
can someone shed some light on this matter?
Re: Interest? in islam
Its haram to give/take/or deal with it as in transactions.
Re: Interest? in islam
Interest itself is considered Haram in Islam....
Re: Interest? in islam
yaar thats what we've always been told and its the written truth..
this guy at a local dinner, just started arguing that giving is okay but taking is haram, turns out he bought a new house last week.
he got very defensive, and was very "convinced" saying that there is no written thing in the quran that says "giving interest is haram" only taking it is haram
can someone provide me with a direct quote from the quran...
thanks in advance
Re: Interest? in islam
always intresting to see the mullah con artists selling 'islamic financing' which is basically an interest based transaction with a different name. shameful
Re: Interest? in islam
i agree, to twist and turn wrong into right for their own satisfaction - and their repeated attempts to satisfy others of their wrong doings
Re: Interest? in islam
thank you sir
just what i was looking for
Re: Interest? in islam
I know you have got your answer already, but I thought I'd just add this. Yes, it's also written in the Qu'ran, which I c you've got reference now, but it also has a whole Hadis on it. There's many reasons to why it's Haram, but I like to remember it this way...like maybe if you're explaining it to someone to why it's haram...It's because it only makes the rich richer, and the poor, poorer. I hope that helps insh'ALLAH :D
Re: Interest? in islam
We keep having this discussion. It’s not interest with a different name, rather, it’s exploiting a loophole in Islamic law that Allah was generous enough to give us.
Since God gave us, through Hadith, an extremely precise definition of interest, it’s very easy to come up with a way of generating the same amount of profit through financing as interest would make, just without fitting that definition.
In laymans terms, making money by lending money, even when secured against an asset, is not allowed. On the other hand, buying that asset and selling it to someone in installments who would otherwise have borrowed money to buy the item is just fine. And since you’re pretty much allowed to set your own profit margins in Islam (as long as you’re not deceiving the other partyin doing so), making money off this is all good too.
To me, it’s no different to how Allah allows us to shorten our prayers when travelling even in this age of easy , comfortable, fast travel. He’s given us a huge loophole, let’s use it!
Re: Interest? in islam
MadSci, the seller is making exuberant profit over the current market price (without the passing of time), which I think is as sinful as making interest. The financier buys the house for say $100K and he turns around sells it the same day for $200K and lets the buyer (borrower) pay back in installments overs 30 years. Is this how it works?
Re: Interest? in islam
sorry maddie, either it is allowed or its is not, you can not call it something else and then say now its allowed.
There are enough anti-interest scholars who do not find this approach valid.
and if this approach is valid then a typical fixed interest financing is halal because it is the same thing.
Re: Interest? in islam
Essentially, yes. The seller marks up the price enough to compensate himself for the expected inflation over time plus the target profit margin.
What stops outrageous markups is competition. Competition between Islamic finance institutions means that the total price ends up being similar to how much you’d pay with bank interest charges.
In this way it operates in an analogous manner to how a bank chooses which interest rate to charge on a long-term fixed rate mortgage.
Why is doing such a profit markup okay but interest wrong? Mufti Taqi Usmani states the following hadith:
It is reported by Sayyidna ‘Ali (radiy allah ‘an hu) that the Holy Prophet (sall allah ‘alay hi wa sallam) has said,
“Every loan that derives a benefit (to the creditor) is riba.”
This hadith is reported by Harith ibn Abi Usamah in his Musnad
Here is a crystal clear definition of riba.
You can argue that since you’re making the same amount of money by buying at one price and selling to someone at a higher price as you would by lending an interest bearing loan, there is no difference at all.
However, in the Quran itself, God states that:
Those who devour usury will not stand except as stand one whom the Evil one by his touch Hath driven to madness. That is because they say: “Trade is like usury,” but Allah hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (to judge); but those who repeat (The offence) are companions of the Fire: They will abide therein (for ever).
Al-Quran 2:275
So despite the similarities between the two ways of financing, one is a great sin and the other is not.
Re: Interest? in islam
well put
thank you
Re: Interest? in islam
There are enough anti-interest scholars who do not find this approach valid.
and if this approach is valid then a typical fixed interest financing is halal because it is the same thing.
i agree, its either haram or not
and using the word "loophole", this is not ur everyday system that has loopholes that u can benefit from. Allah has made it very clear in the quran that Interest is haram. now people justify how it is halal if u rename it? why not just say yes i understand its haram, but i still bought the house/car/ or anything else which required interest to be paid? why turn and twist islam all around and say there are loop holes ... "LETS USE IT" - disgusting
Re: Interest? in islam
I think the Quran prohibits usury taking as haram. There is no mention of any punishment for those who give. Please correct me if I am wrong.
Re: Interest? in islam
Maddie there were posts in the pastwith ppl putting scholars views that any profit taking on a financial transaction as such was haram.
maybe we can have the maulvis duel it out.
Re: Interest? in islam
What stops outrageous markups is competition. Competition between Islamic finance institutions means that the total price ends up being similar to how much you'd pay with bank interest charges.
If we read the actual text of the Holy Quran, it also spells out what amounts to interest: i.e. Double and Four Times the Capitol is considered Riba. however that is the litteral meaning; what the scholars think is any amount can be considered Riba. wallah Alam!
Re: Interest? in islam
The so called Islamic bank - Meezan of Pakistan - charge you more interest than the other interest-charging banks for car lease!
Re: Interest? in islam
most islamic banking or mortage options in teh western world are also based on the same method but reffered to as the "sharaie loan"