Interest
This INterst cannot be eliminated from the system
Take an example
If one possesses a house of $100 and he rent it out, he will get income out of it, and the rate of rent will also rise within a no of years
But if one gives $100 to someone and he takes no interest, it wouldn’t be beneficial to him in any way, and therefore he will not lend it.
I think the Riba is that interest, which was very much in practice in pre Islamic time, and it was a tool used by rich to purchase the poor,
but if you give loan to someone for business enhancements, and he will give you a %, it would be beneficial for the society
Now many people say that Islam Allows P&L system .But this system is not fully applicable because P&L system requires exact figures of Profits, and error and fraud free figures can only be obtained by auditing of the accounts., and brothers/sisters let me tell you something about auditing its pretty expensive, very much expensive .So only Joint Stock Companies will be able to do it, but what about Sole Traders and partnership firms they cannot afford it. So if we take their un audited P&L statements, the chances of Frauds are very high. So it can’t be done. For them Interest is the only way.
If some bro/sis has any answers to my queries, do tell me.
Syed Ali Anzar
Re: Is TOday’s Interest is The RIBA of QUran ..I Think NOt !
Allah:swt: States in Surah Baqarah of Al Quran:
**275. **Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permitteth trading and forbiddeth usury. He unto whom an admonition from his Lord cometh, and (he) refraineth (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returneth (to usury) - Such are rightful owners of the Fire. They will abide therein.
Re: Is TOday's Interest is The RIBA of QUran ..I Think NOt !
If some bro/sis has any answers to my queries, do tell me.
Syed Ali Anzar
90% of what you say is well over the heads of those who often ponder the issue.
I've never heard a satisfactory answer to the position that, in Western countries, it is GAURANTEED that you will loose money if you don't accept interest. Guaranteed loss is just as bad as guaranteed gain. The value of money is not constant; it's a decreasing function with respect to time. Perhaps one should not take any more, or any less, than the current prime rate.
There are prime examples of usury...just look at credit card interest rates. However, interest as a check on inflation (for example) is something that just doesn't seem to get through our thick skulls. It's a complex issue that's oversimplified.
Needless to say, anyone who absolutely shuns interest has no business carrying currency of any nation, and should stick with gold.
Re: Is TOday’s Interest is The RIBA of QUran ..I Think NOt !
picoico vbmenu_register(“postmenu_3810206”, true); …nice reply…but can u differtiate in b/w Riba n Mod. Interst ?
thx
Re: Is TOday’s Interest is The RIBA of QUran ..I Think NOt !
Do you know that if you help someone you get ‘sawab’ i.e. an entity which you will see only on day of judgement? One of reasons interest is forbidden is to promote helping without seeking a benefit in this world, a person who wants to ‘lend’ to a friend/relative is very likely trying to ‘help’ him in his need.
Now if you want to question the ‘forbidden’ in context of business oriented lending then that is a different thingie, there are ways of lending.
Re: Is TOday’s Interest is The RIBA of QUran ..I Think NOt !
…no more than the fine line between gambling and speculative investing.
Some times, though, it becomes apparent. 18% interest rate is a bit crazy…