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Riba

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This is an old revision of this page, as edited by 91.73.204.10 (talk) at 11:09, 8 May 2008 (double 30:39 change usuary to riba as it is disputed among scholars per article). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

For RIBA, see Royal Institute of British Architects.

Template:Fiqh-Eco Riba (Arabic: ربا) means usury and is forbidden in Islamic economic jurisprudence. According to some, this refers to excessive or exploitative charging of interest, though according to others, it refers to the concept of interest itself.[citation needed]

Qur'an

The Qur'an states the following on Riba:

That they took riba, though they were forbidden and that they devoured men’s substance wrongfully – We have prepared for those among men who reject faith a grievous punishment (Quran 4:161)

Those who charge riba are in the same position as those controlled by the devil's influence. This is because they claim that riba is the same as commerce. However, God permits commerce, and prohibits riba. Thus, whoever heeds this commandment from his Lord, and refrains from riba, he may keep his past earnings, and his judgment rests with God. As for those who persist in riba, they incur Hell, wherein they abide forever (Quran 2:275)

God condemns riba, and blesses charities. God dislikes every disbeliever, guilty. Lo! those who believe and do good works and establish worship and pay the poor-due, their reward is with their Lord and there shall no fear come upon them neither shall they grieve. O you who believe, you shall observe God and refrain from all kinds of riba, if you are believers. If you do not, then expect a war from God and His messenger. But if you repent, you may keep your capitals, without inflicting injustice, or incurring injustice. If the debtor is unable to pay, wait for a better time. If you give up the loan as a charity, it would be better for you, if you only knew. (Quran 2:276-280)

O you who believe, you shall not take riba, compounded over and over. Observe God, that you may succeed. (Quran 3:130)

And for practicing riba, which was forbidden, and for consuming the people's money illicitly. We have prepared for the disbelievers among them painful retribution. (Quran 4:161)

The riba that is practiced to increase some people's wealth, does not gain anything at God. But if people give to charity, seeking God's pleasure, these are the ones who receive their reward many fold. (Quran 30:39)

Ahadith

Riba is also mentioned in Ahadith and is considered one of the seven major sins:

Jabir said that Allah's Messenger (may peace be upon him) cursed the accepter of usury and its payer, and one who records it, and the two witnesses, and he said: They are all equal. [1]

It is reported on the authority of Abu Huraira that the Messenger of Allah (may peace be upon him) observed: Avoid the seven noxious things. It was said (by the hearers): What are they, Messenger of Allah? He (the Holy Prophet) replied: Associating anything with Allah, magic, killing of one whom God has declared inviolate without a just cause, consuming the property of an orphan, and consuming of usury, turning back when the army advances, and slandering chaste women who are believers, but unwary. [2]

Jurisprudence

The interpretation of riba varies among different scholars of Islamic law and jurisprudence. The popular view in modern Islamic banking and Islamic economic jurisprudence is that the concept of interest itself is riba and is therefore unlawful

The definition of riba in classical Islamic jurisprudence was "surplus value without counterpart." When "currencies of base metal were first introduced in the Islamic world, no jurist ever thought that paying a debt in a higher number of units of this fiat money was riba" as they were concerned with the real value of money (determined by weight only) rather than its numerical value. For example, it was acceptable for a loan of 1000 gold dinars to be paid back as 1050 dinars of equal aggregate weight of gold (i.e., the value in terms of weight had to be same because all makes of coins did not carry exactly similar weight) - therfore having the same real value. The rationale behind riba according to classical Islamic jurists was "to ensure equivalency in real value" and that the "numerical value was immaterial (or it was not of any concern at that time)." The common denominator between the classical view, and the modern view is that paying fiat money back at a higher value than the original loan is riba, if not any numerical value above the original amount. This would still rule out modern loan interest rates in both opinions so has given birth to the modern Islamic banking and Islamic economic jurisprudence.

See also

Notes

  1. ^ Sahih Muslim, Book 010, Number 3881
  2. ^ Sahih Muslim, Book 001, Number 0161

References

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