Sharia - Usury

Question 1

What happens when a developing country borrow money from a richer country?

Answer 1

They have added interest on these loans which they then also have to pay off but can ill afford.

Question 2

What happens when one deposits money in the bank in the West?

Answer 2

This money is used to lend to others with interest. If the individual doesn’t take the interest due from their deposit then this leaves the money in the bank and makes the bank even richer.

Question 3

What are the consequences of a lender taking interest and giving it to charity?

Answer 3

The money has been made at the expense and exploitation of others (those who have deposited money in the bank)

Question 4

What are the consequences of using credit cards?

Answer 4

If someone has a credit card and pays off the money so to avoid having to pay off the interest at the end of the month then the company still exists through charging interest to others.

Question 5

What is the impact of mortgages?

Answer 5

They are lent with interest and if a person cannot afford a mortgage then s/he must rent accommodation which gives money to the land lord but you do not make any money or any gain in profit. It’s dead money.

Question 6

What is usury? How do Muslims view it?

Answer 6

Usury (riba) is the practise of lending money at unreasonably high interest rates. All forms of economic exploitation are forbidden in Islam according to orthodox Muslims.

Question 7

What is Riba an-nasiya?

Answer 7

An excess (riba) charged for a loan in cash

Question 8

What is Riba - al-fadl?

Answer 8

The simultaneous exchange of unequal quantities or qualities of a given commodity - this applies to bartering for goods

Question 9

Give an example of Riba al-fadl?

Answer 9

I will give you 3 kilos of dates if you give me 2 kilos of dates/ olives or I will give you 1 kilo of my good dates for 3 kilos of your lower quality olives.

Question 10

What does sadaqa mean?

Answer 10

“Bearing one another’s burdens” means that Muslims who have surplus money should give or lend it to someone in need without requiring interest.

Question 11

Why did Muhammad prohibit usury?

Answer 11

Goes back to his relationship with the Jews of Medina. He regarded them as fellow believers for some time but when he appealed to them for contributions they would only lend loans with interest rates.

Question 12

What does the Qur’an say about the Jew’s wrongdoings? What does it mean?

Answer 12

“Their taking usury (interest) when they had been forbidden to do so”. This implies that the Jews should have taken the Muslims as their fellow believers and they should not have charged them interest.

Question 13

What does the Qur’an say about usury in the eyes of God?

Answer 13

“And whatever riba you give so that it may increase in the wealth of the people, it does not increase with God.”

Question 14

What does the Qur’an say about forbidding lending money?

Answer 14

“They say” trade is like usury “but God has permitted trade and forbidden usury”

Question 15

What did Muhammad say about the bartering of dates?

Answer 15

“No (bartering of) two Sas (of mixed dates) for one Sa (of good dates) nor two Dirhams for one Dirham is permissible”

Question 16

What did Muhammad say about selling wheat?

Answer 16

“The selling of wheat for wheat is riba except if it is handed from hand to hand and equal in amount.”

Question 17

For Muhammad, what is usury?

Answer 17

One of the “seven great destructive sins”

Question 18

What does Ibn Majah say?

Answer 18

Muhammad declared the practice of riba worse than “a man committing zina (fornication) with his own mother”

Question 19

What does Muhammad Akran Khan say?

Answer 19

According to current orthodox scholars interest is a violation of Shari’a law. However, Muhammad nor the first 4 caliphs put any law on riba into action.

Question 20

How do Muslim Banks operate?

Answer 20

The Muslim bank might lend money to a business. The business starts to make money and gives some of its profits to the bank. The bank shares the profits with those who have invested in the business.

Question 21

What are the consequences of how Muslim banks lend money?

Answer 21

The bank takes some risk when they lend money to a business - leads to more responsible lending and stops producers selling their goods at far too high prices to pay off high loans with added interest.

Question 22

How should Muslims approach mortgages?

Answer 22

Western Muslim scholars say to take out a limited repayment mortgage as the necessary of two evils (rather than renting), this repayment mortgage should be smallest possible, and buy a modes home so that the mortgage can be repaid as quickly as possible.

Question 23

How does the principle of sadaqa apply to mortgages?

Answer 23

Muslims should collect their savings and lend it all to one family to buy a house. Once they have paid it off they collect again for another family.

Question 24

What are the consequences of banning interest?

Answer 24

It shares out the wealth because interest takes money from the poor and gives it to the rich whereas Islam takes the money from the rich and gives it to the poor.

Question 25

Why are Muslims making ethically screened investments?

Answer 25

In order to save for their children’s futures and for health needs etc.