Saturday, 27 February 2021

The Prophet and different forms of riba




THE PROPHET AND DIFFERENT FORMS OF RIBA

While the Qur’an had identified ‘lending on interest’ as riba, it was left to the Prophet (s) to elaborate and to explain the many different forms of riba. Perhaps the most important of such explanations given by the Prophet (s) is the hadith reported by Jabir:

The Messenger of Allah (s) cursed the one who takes (i.e. consumes) riba, the one who gives (i.e. pays) riba, the one who records the transaction and the two witnesses thereof He said: They are all equally guilty.
(Muslim)

A similar statement of the Prophet is reported by Abu Juhaifa:

The Prophet cursed the lady who practices tattooing and the one who gets herself tattooed and the one who consumes riba and the one who gives it. And he prohibited taking the price of a dog, and the money earned by prostitution, and cursed the makers of pictures.
(Bukhari)

Thus every time a Muslim writes out a check to pay the installment of a riba-loan (i.e. a loan on interest) which he has taken from a bank for purchasing a house or car etc., he should be aware that he is engaged in riba and that the Prophet Muhammad (s) has cursed him! If he dies without making tauba and without making every possible effort to extricate himself from riba, then he could end up in the fire of hell!





DIFFERENT FORMS OF RIBA

The Prophet (s) declared that there are seventy different kinds or forms of riba;

Abu Huraira reported Allah’s Messenger as saying: Riba has seventy parts, the least serious being equivalent to a man marrying his own mother (which is the polite language of the Prophet with which to describe the abominable act of a man having with his own mother).
(Sunan Ibn Majah)

But he did not identify all seventy. In fact he described only a few of the different forms of riba. The implication, therefore was that there are, or will be, forms of riba existing in the world which have not been specifically identified as such by the Prophet (s). Indeed Umar (r) lamented the fact that the Prophet (s) died without specifically identifying all the different types of riba:

Ibn Umar said: Umar delivered a sermon on the pulpit of Allah’s Apostle saying ..... I wish Allah's Messenger had not left us before he had given us definite verdicts concerning three matters, i.e. how much a grandfather may inherit (of his grandson), the inheritance of al-kalala (the deceased person among heirs there is no father or son) and the various types of riba.
(Bukhari)

It remains for the scholars of Islam to use inference and analogy to locate other forms of riba not identified by the Prophet (s) and which may not have appeared as yet in the world at the time of the Prophet (s), but have now made their appearance, particularly in this evil age which has witnessed the transcendental release of ya’jooj, ma’jooj and al-Masih al-Dajjal! Muhammad Asad has envisaged a creative role for Islamic scholarship in this respect. He observes:

... while the Qur’anic condemnation of the concept and practice of riba is unequivocal and final, every successive Muslim generation is faced with the challenge of giving new dimensions and a fresh economic meaning to this term which, for want of a better word, may be rendered as 'usury’. 


Here are some of the forms of riba described by the Prophet (s):

1 - Credit transactions (bai muajjal). There are some credit transactions which have been prohibited by the Prophet (s) because they involve riba:

Usama bin Zaid reported the Prophet as saying: Credit involves riba. In another version he said: There is no riba when payment is made on the spot.
(Bukhari, Muslim)

Such a credit transaction would, for example, be one in which an animal is traded for another animal:

Samura b. Jundub said that the Prophet forbade selling of animals for animals when payment was to be made at a later date.
(Tirmidhi, Abu Daud, Nasai, Ibn Majah ami Darimi)

The reason for the prohibition appears to be the element of uncertainty in which death, for example, might occur to an animal, or it may fail ill etc. Such an occurrence can lead to disagreement and conflict between the parties to the credit agreement. Credit is also discouraged because when payment is to be made at a later date one may not be able to make the payment and that could have serious consequences. In Latin America the white plantation owners deliberately encouraged the Indian peasants to take credit and when they could not pay on time they had to give their labor instead. And so the latifundia or Latin American plantation economy was built on a scarcely disguised form of slavery. One of the most powerful statements we have ever heard during our five years in New York came from Tracy Riggs, in African-American inmate at the Morristown Prison in the State of New Jersey. Credit, he said to me, is the first step back to slavery.

The system of riba creates its own self-generating and self-sustaining apparatus in the form of credit-worthiness of individuals. A person has good or bad credit. The system forces every individual to struggle to establish and sustain a good credit record. It does so by punishing those who have bad credit! If someone has never borrowed money on interest and as a consequence, does not possess a credit record, he is looked upon with grave suspicion! 
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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