Saturday, 31 October 2020

Different forma of riba




DIFFERENT FORMS OF RIBA

Some of the different forms of riba would be:

- lending money on interest; this is known as riba al-fadl; credit transactions ba`i muajjal;

- increasing the price of an article in consideration of deferred payment. This credit transaction is known as riba al-nasi`ah;
 
- employing deception as the basis for unfair profit, thus compromising the free market; this is called gharar and it takes many different forms such as: speculative transactions - in which the masses work to earn their livelihood (rizq) and this rizq is then sucked away by the predatory elite in a sophisticated form of gambling;

- having someone artificially bid up the price in an auction, thus corrupting the free and fair market;

- hoarding in order to capitalize on the resultant artificially created scarcity in the market and thus compromising the free market; 
- monopoly which allows control over price. Such a situation would result in prices being fixed in accordance with the plan of the monopolists rather than the free market;

- a sale on the condition of deferred payment but with an increase in price. The debt is then sold to a third party for cash at a price which allows both parties to share in the increase, realized through deferred payment. etc.!

WHICH IS THE MOST DANGEROUS FORM OF RIBA?

Since Allah the Wise, has chosen to highlight one form of riba by way of making mention of it in the Qur’an, then clearly that must be the most dangerous form of riba in the sense of having the capacity for inflicting maximum damage on mankind.

That form of riba is ‘lending on interest’. And it is precisely that form of riba which has embraced all of mankind today in its venomous deadly embrace. Perhaps it is the most dangerous form of riba because it has been legalized. It thus constitutes one form of legalized theft. There are of course other forms of legalized theft.

to be continued . . . . 

The Prohibition of Riba (Interest) by Imran Hosein



The Prohibition of Riba (Interest) (Q&A) by Imran Hosein



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