Riba & Its Types

Riba The word Riba sum excess, increase or addition, which correctly interpreted according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include term value of money). Types of Riba 1. Riba AnNisiah This is the stipulated interest group which the lender takes from the borrower in consideration of the fourth dimension attached to the borrower to pay back the capital. It is HARAM based on the Quran and the Sunnah and the consensus of Muslim scholars. . Riba Al Fadl This applies to barter (exchanging one commodity for an other(a)), where commodities of the same type argon exchanged in unequal amounts, especi onlyy the exchange of precious metals and foodstuffs, it is HARAM, by the Sunnah and the concensus of scholars as it paves the way for Riba nNasiah. Numerous ahadith have demonstrated the proscription with regard to gold, silver, wheat, barleycorn, dates, and salt.The Prophet sallaAllahu alayhi wa cheatem s attend to , Gold for gold, and silver for silver, and wheat for wheat, and barley for barley, and dates for dates, and salt for salt, like for like, equal for equal, from hand to hand (the transaction must be completed before the two sides leave each other). still if the types ar different then sell as you wish, as coarse as it is hand to hand. (Muslim) The Prophet sallaAllahu alayhi wa sellem also said, Whoever gives more or asks for more (than what he gave) commits an act of Riba, the given and the taken are alike (in the sin). (Muslim) The Prophet sallaAllahu alayhi wa sellem said, Prohibited selling food (of the same variety) get out tantamount(predicate) in weight and hand to hand. (Muslim) Do not sell gold for gold un little equivalent in weight (and from hand to hand), and do not sell less amount for greater amount or vice versa, and do not sell silver for silver unless equivalent in weight (and from hand to hand), and do not sell less amount for greater amount or vice versa a nd do not sell gold or silver that is not present at the moment of exchange for gold or silver that is present. (agreed upon)To lend a bank money or borrow from it on the condition of a payment of a fixed annual or monthly fortune rate of interest, say 2%, or more or less, is a form of PROHIBITED RIBA. whereas Allah has permitted trading and forbidden Riba (usury) 2275 Poverty isnt an acknowledgment for Riba. Mudaraba which is a form of partnership where one person invests money and the other invests his skill and effort, and they share the profit or loss of the enterprise, so Islam did not impose any sternlyship on the people (by prohibiting Riba) but sort of it provided them with a viable alternative to it, among them are the following . Qard Hasan (a beautiful give) Istead of a Muslim imparting his money on interest which causes pollution and chevvy on all his property and oppresses the borrower, Islam encourages him to make the loan Qard Hasan, and promised him a skill ful reward for it Allah said, Who is he that will lend to Allah a goodly loan so that Her may multiply it to him many times? 2245 2. liberal an extension to a person who cannot repay the loan on time because of financial difficulty, until he gets back on his feet.And Islam encourages the lender to forgive the loan altogether in this circumstance Allah said, And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay, but if you remit it by way of charity, that is better for you if you did but know. 2280 3. Mutual Aid by all means This encompasses mutual aid on a accessible level, in industry and in agriculture, and social security by financing farmers and industrialists and craftsmen in order to enable them to piddle effectively.This returns a benefit to the whole Ummah. Also, opening schools and buidling hospitals and homes for the elderly and the incapacitated and all other items alike fall under the mutual aid mentioned in the ve rse help you one another in Al whirring and atTaqwa (virtue, righteousness and piety) 52 The society which realizes these means will proceed, in the shade of this comprehensive mutual aid, happily and far removed from the disoblige of Riba. . We should not forget the payment of Zakat to those who deserve it. This will have a major impact on getting rid of Riba. BEWARE from put your money in a *nonIslamic bank*. Even if you dont take interest on it, the bank takes your money and loans it out to gain interest. So you are helping the Riba system, and are indirectly responsible and beware from taking loans from those banks.