Questions tagged [riba]
Riba means Interest. Riba is Haram (forbidden) in Islam, and it is considered a major sin.
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How do Islamic banks make money if interest is prohibited?
I know that Islamic Banking involves the prohibition of interest based loans. But how do Islamic Banks make profit if they charge no interest?
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Why is Interest such a bad thing according to Islam?
Source of quoted texts: islamqa.com.
"Those who eat Ribaa will not stand (on the Day of Resurrection)
except like the standing of a person beaten by Shaytaan (Satan)
leading him to insanity. ...
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How to cope with interest payed by banks?
People have saving accounts in bank to save money in a secure place. And Salary accounts are also a kind of Saving account. Banks usually pay a small amount of interest after particular interval. My ...
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How to buy and sell rare currencies without approaching riba?
Among collectors, there are people who collect coins and banknotes which are considered rare or unusual. Often these would be older currencies which are no longer produced (although they may still be ...
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Is making an "equivalent value" loan in accord with Islam?
In much of the modern world, currency is defined according to a "floating exchange rate." To the best of my knowledge, such an innovation was unknown during the time of the prophet, where the economy ...
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Can a Muslim borrow money from his own 401(k) plan, with interest?
I understand from this, and other related questions, that Muslims are not permitted to charge interest on loans.
This brings up a question for me:
In the U.S. many people have 401(k) retirement plans, ...
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Why is Murabaha not considered Riba?
To take the definition of Murabaha from Wikipedia:
This concept refers to the sale of goods at a price, which includes a profit margin agreed to by both parties. The purchase and selling price, ...
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Is Usufruct (where a loaned item produces something) a form of interest?
There is a concept called "Usufruct" (use fruit) where an item is lent, but it produces something during the period of the loan.
I lease my two horses to Omar for a year while he uses my house. These ...
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Is this lease-like financial transaction allowed in Islam?
Let's imagine this as follows:
A is in need of $10,000 cash urgently and finds no lender. He owns a house, which he had rented out to someone for $500 a month. A, driven by the need of cash wants ...
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Is indirect help to a riba business haram?
I came across the question Working in banks in an Islamic country. According to my understanding of the answer by Shaykh Muhammad Saalih al-Munajjid,
You are doing haram if you are helping someone ...
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What to do with the Riba (interest) money? [duplicate]
I have some interest money in my account and I recently came to know it is haram. I want to get rid of it. Please tell me the ways to spend it.
Can I spend it as wedding or birthday gift to my ...
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Does the Hanafi school permit debtors to profit from loans?
Unlike a personal loan, which is typically taken and used in need, business loans are often taken with the express intent of profiting therefrom. Often, a business may choose to go in debt not ...
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Should I take loan from the bank at 1% interest or be forced to pay 9% interest by failing to pay rent?
Something happened and I lost my job, and I didn't have enough money to pay the flat rent.
Here in Sweden if your late in paying rent, what they do is they start to take interest on the rent until ...
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Is interest-based educational loan allowed?
Students from economically backward communities who opt for higher studies generally depend on educational loans, which are offered with interest, either by banks, developmental organisations, or by ...
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Why are mortgages haram?
I know taking loan and mortgage in haram in Islam. In UK, I am paying the amount of money as rent which I can pay as mortgage. If I pay as mortgage I will be the owner of that house after several ...
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