Afternoon Reminder. Thursday. DIFFERENCE BETWEEN TRADE AND INTEREST(RIBA). The word Riba or Interest, in Arabic language, literally means an increment or addition. In Islamic Fiqh the term riba has a special meaning. Riba is an unjustified increment in borrowing or lending money, paid in kind or in money above the amount of loan, as a condition imposed by the lender or voluntarily by the borrower. Riba also is an unjustified increment gained by the seller or the buyer if they exchanged goods of the same kind in different quantities. Riba prohibition in Quran is mentioned in three distinct passages. To consider the chronological order of the Quranic revelation, Allah, firstly, gave a warning (Suura 30:39) that riba earnings will be wiped out while persons giving charity will be rewarded more than they have spent. Secondly, believers have been ordered, and warned never to take riba at compound rates (Suura 3:130). Thirdly riba in all forms was utterly condemned, and those cared not for its prohibition were threatened a holy war to be waged against them by Allah and his Messenger (Suura 2:275-279). It was made clear that riba transaction is different than trade and that it is the Will of Allah to prohibit riba irrespective of any reasons which may be given for its support. As for Trading, there are many permissible trade like buying and selling halaal commodities without excessive profits. You can also invest your Money with any halaal business or trade with agreement of sharing profits and loses. We cannot invest with any haraam business transactions. Any kind of investment with non Islamic banks is haraam bcs they use our money for their Riba based business nothing else. If you need to open an account so that you can receive your wages into it nothing wrong but make sure you dont accept any interest on your money, if they pay try to take out that interest to the poor. As Muslims we have Allah and He is sufficient for us. Lets strive to live with halaal means and Allah will reward us. The Prophet encouraged us to go to the bush for firewood to sell for income thats better than haraam sustenance with mere excuse of no job. May Allah protect us all from any kind of disobedience to His rules. Aameen.
Posted on: Thu, 25 Dec 2014 13:51:27 +0000