Showing posts with label loan. Show all posts
Showing posts with label loan. Show all posts

Saturday, 7 August 2021

The Prohibition of Riba in Quran and Sunnah Conclusion




Being an explanation of the Islamic prohibition of riba (i.e. borrowing and lending on interest. among other things) and an effort:

to remind Muslims of the teachings of the Qur’an and the Sunnah as they pertain to the prohibition of riba and in particular that a violation of this prohibition constitutes a great sin;

to expose the grand design of hostile forces who have already made considerable progress, through riba in gaining control over mankind. Their aim is to gain total control and to use that power to destroy faith in Allah;

to assist Muslims to get out of direct involvement in riba and thus to preserve their faith (Imaan) while recognizing that it is today impossible to live a life which is completely free from riba.

to explain the economic Sunnah (i.e. the Sunnah as it pertains to economic affairs) and in particular the nature of the free and fair market and the different ways through which that market has today been tonally corrupted.

to warn Muslims of the inevitable collapse of the present fraudulent system of non-redeemable artificial money, i.e. paper plastic and electronic money; and to encourage them to return to the use of the real money created by Allah i.e. gold and silver coins or any other real money;

to contribute towards the restoration of the free and fair market (with a different business ethics to that of riba-based capitalism) by encouraging ba’i (business) in the place of riba and raising of capital by way of mudarabah and musharaqa) investments rather than bank loans on interest.

That time has now arrived! 


Islam declares that the oppressed have the right to resort to force in their struggle for liberation from all forms of oppression, including economic oppression! No law can take away that right from them.

This work has exposed the many forms of riba to be the most destructive forces at work corrupting and destroying the free and fair market. Riba should be recognized as the curse of business and trade, - and as systematically destroying the collective benefits which are derived from business and trade. The injustices involved in riba are both enormous and dangerous. It breaks up, for example, the unity and fraternity of the social order and creates class hatred, violence, chaos etc. or what the Qur’an describes as fitan.

The prevalence of riba in the world today further confirms that we now live in the age of fitan (evil) which the Prophet (s) prophesied to be the last age before qiyamah (the end of the world). How should a Muslim live in the age of fitan? A companion of the Prophet (s) named Hudhaifa asked the Prophet about the age of evil and how we should live in that age. This was his reply:

Among the Signs of the last day as described by Allah's Messenger to his companion, Hudhaifa, is the following: People will follow a Sunnah other than mine and give guidance other than mine, so you will find in them both something to acknowledge and something to reject. I asked whether there would be any evil after that good and he replied. Yes, there will be people who summon others at the gates of jahannam into which they will cast those who respond to them. I asked Allah's Messenger to describe them to us and he said: They will be of our stock and speak like us. I asked: what command he had to give me if that happened in my time and he replied: You must adhere to the jama'at.


The Prohibition of Riba (Interest) by Imran Hosein



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



Saturday, 24 July 2021

Questions and answers on riba Part 1




Questions and Answers on Riba

Question: Is a Muslim allowed to place his money in a savings account or a fixed deposit in a bank?
Answer: No! That would yield an increase which would be interest or riba. And Allah the Most High and the Prophet (s) have prohibited Muslims from consuming riba.


Question: Is a Muslim prohibited from paying interest (riba)?
Answer: Yes! Whether it be interest on a loan for buying a house, or car, or for paying for college education, or interest payments on credit cards etc. Muslims have been prohibited from paying interest. The Prophet (s) cursed all four and said that they were all equally guilty, - the one who accepted riba; the one who paid riba, the one who recorded the transaction and the two witnesses. He said that they were all equally guilty.


Question: If a Muslim has already entered into riba for purchasing a house, what can he do in order to obey Allah the Most High, and His Prophet (s)?
Answer: He can sell the house and pay off the bank loan. He can then live in a rented property until he can afford to purchase a house with cash. If houses are expensive and he cannot afford to purchase one with cash he should follow the Sunnah and be content with the smallest house or apartment which can be built or purchased without having to borrow.

Or he can make an effort to attract a sufficient number of investors who would put up the money with which to pay off the bank. If the market value of the house was $100.000, and he owed the bank $50.000, then the investors who paid off the bank would have a 50% ownership of the house, and he would have 50%. He would then rent the house from the partnership (which now owns the house). If the rent is $1000 per month $500, would be returned to him as his share of the return on investment. He would then enter into a second agreement to purchase from the investors their equity in the property in accordance with a schedule of payments which is mutually agreeable. Every year, however there will be a new appraisal of the value of the property. Eventually when he has purchased the entire equity of his partners, he will be the sole owner of the house.


Question: Can a Muslim invest in the stock market?
Answer: First of all what is a stock? A stock is a part of a company; if you buy the stock of a company therefore, you have become a part owner of the company. You are now entitled to share in both profits and losses of the company. Investors earn dividend payments from their stocks. They can also realize a profit by selling their stocks for more than what they paid.

The stock market in a free market is a valid and legitimate economic Institution. But a free market no longer exists in the world today. The stock market in a capitalist economy is permeated with riba; indeed it is usually a den of gamblers and thieves. Speculation is the dominant force in today's stock market. And speculative transactions are riba. What is a speculative transaction? It is a transaction in which one buys anticipating that the price would eventually rise. When it does, one sells and makes a profit. It can also be a transaction in which one sells anticipating that the price will fall. When it falls one then buys back what one had sold and thus make a profit! Speculative transactions are no different from gambling. A Muslim should rather invest in his own business of failing that, invest in a halal business owned and operated by someone, or by a group of people who are honest and who have business acumen.

Today’s stock market operates on the basis of access to information. Whoever gets information first can exploit that knowledge and make money. Titus one of the keys to consistent gain in the stock market is access to timely information. Access to information is usually obtained through bribery and patronage. It thus becomes insider information. Insider information from official government sources is sometimes obtained as quid pro qua for political campaign contributions made at election time. Those honest investors who do not have access to insider information and privilegeded information stand no chance of success in a stock market which thus operates by way of deception, and hence by riba.


Question: Can a Muslim own and use a credit card?
Answer: A credit card is a card which permits its owner to borrow a certain amount within a period of time (usually one month). If that loan is repaid within the stipulated period then that loan would be an interest-free loan. If a on the other hand, the loan is not repaid within the stipulated time then interest (riba) would be charged on the loan. A Muslim is prohibited from paying interest, and so a Muslim who pays all his credit card debts on time, and never has to pay interest, may argue that he has not violated the law in using a credit card. Bui consider the following; The agreement with which one acquires a credit card is an agreement with provisions for riba. Such an agreement is haram for a Muslim. Thus by entering into the agreement one has entered into riba.

Can a Muslim accept credit on the condition that if at is not repaid on time the Muslim commits himself to drink a glass of whisky? No! Can a Muslim accept credit-on the condition that if it is not repaid on time the credit or will have the right to sleep with his wife? No! Well, then, how can a Muslim accept credit on the condition that if it is not repaid on time he will be obliged to pay riba?

Secondly, whatever leads to haram is itself haram. While one person may display financial responsibility to the extent of paying all credit card loans on time, there will be ninety-nine who will not, and who will enter directly into paying riba. To accept such a possibility one would have to adopt the principle in life of every man unto himself and the devil take the hindmost. A Muslim is prohibited from living such a life.

to be continued . . . . 


The Prohibition of Riba (Interest) by Imran Hosein



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