Is Exploitation the Reason for the Prohibition of Riba? Some argue that riba (interest) is only prohibited because it exploits others, suggesting that small amounts of riba could be acceptable. This mirrors what Christians did: claiming large amounts of riba (which they call usury) are haram due to exploitation, but small amounts (called interest) are halal. So let's make this clear-whether it's a small or large amount, exploitation or not, all riba is haram. Why? To prevent any possibility of injustice and exploitation. By adding the condition of exploitation instead of understanding it technically (for instance, excess from money-to-money transactions), we might inadvertently allow exploitation to happen. As Muslims, we don't look at the amount of riba; we understand it's prohibited in any form. I delve into the wisdom behind this prohibition, highlighting the prevention of exploitation and injustice. Watch the discussion starting at 15-16 minutes in the video: ruclips.net/video/18FJgXjqW0w/видео.html
i have left a company name XCEEDANCE PVT. LTD. . I was assigned a position as RISK ANALYST. It was offering Rs.50k/month(indian currency). I let as soon as i came to know that this international american based company only work for insurance and it associated work. So, did i do right according to islamic principle? PLZ RESPONSE
Imagine you buy a house using gold as the medium of exchange , rather than money . Over time , you repay the loan by returning the same weight in gold , bit by bit . However , the price of gold is likely to rise over the next 20 years, witch means it wil cost you more money to buy the gold . Is this Halal ?
What do you think about goverments printing money without growth. I live in Turkey, even I do same job, my salary increase 8 times (multiplied by 8) but my purchase power halved. Because of unfair printing money of government.
@@ilhantezel6125 What has this to do with my question ??? ( usa an europe are printing 1000X more and their euro and dollar stay the same , its all about acting and putting pressor to kill you if you are aginst the dollar ! )
@@soupvis2616 who cares if paper currency is rising. If it is exchanged in gold then returning gold same amount is the point. If you don't return same amount the lender will be loser. Anybody will hardly give you money let alone at a loss...
$1 for $1.01 or 2kg of dates for 1kg of dates is haram so you must convert to a diferrent medium and that means exposing yourself to market forces such as risk, supply and demand to essentially acheive the same outcome. That is just beautiful becuase riba transactions are not exposed to market risk and do not circulate money broadly in the economy rather it has a concentrating effect to few hands. Perfect solutions yet again by islam
"circulate money" ... That is the whole purpose of banks and capital markets, to accumulate savings and transfer it to borrowers who can use the money.
@@roberthannah7983this is called credit creation, which then creates a bubble. Everything seems to be flourishing until the bubble bursts. Remember the 2007-8 crisis, and it’s not just one example.
_Riba' (usury) in a nutshell_ In order to understand Riba', then understanding illah (cause) need to be explained. The agreed upon sources of the Sharee'ah are four. Qur'an, Sunnah, Ijma' (consensus) and Qiyas (analogical inference). There are more sources, but the Madhaahib (schools of jurisprudence) agree upon those four. The former two are Revelation (Naqliyyah - transmitted). The latter two are 'Aqliyyah - rational). So when you hear: "the Naql" - then it means transmitted revealed evidence. And when you hear "the 'Aql" it means rational. _Qiyas_ For example, a new drug hits the streets called "blue high". Now, blue high is not mentioned in the Qur'an or Sunnah. So the Mujtahid (research scholar, jurist) uses Qiyas (analogy). And Qiyas has four principles: 1. The Asl (old case). 2. The Far' (the new case). 3. The 'illah (cause). 4. And the Hukm (ruling). So the Mujtahid finds an old case (Asl) that is mentioned in the Qur'an and Sunnah like Khamr (intoxicants, alcohol). Then he compares it with the new case (Far') due to both having a similar 'illah (effect, cause) which is that both intoxicate. And thus since the Hukm (ruling) of the old case (Asl) was Haram (unlawful), then the new case (Far') gets a similar ruling of being Haram (unlawful) by way of Qiyas (analogical inference). As for Riba' (usury), then there are two types. The Riba' that the Qur'an mentions vs the Riba' that the Sunnah/Hadith mention. And the type of Riba' that most people are familiar with, is the one that the Qur'an mentions, like taking a loan and paying the principal plus interest. And if your payment is delayed, then the creditor charges the debtor extra interest. This is the Riba' that the Qur'an mentions. And it is called the Riba' of Jahiliyyah (pre-Islamic ignorance), or the Riba' mentioned in the Qur'an. Then you have the second type of Riba', and that is the Riba' that the Sunnah mentions. And it is called Riba' of Buyu' (trade). It deals with bartering, specifically the six Ribawi articles: (1) gold, (2) silver, (3) wheat, (4) barley, (5) dates and (6) salt. _Jins (Famili) vs Naw' (type)_ Gold and silver fall under the same Jins (family) of medium of exchange. Paper currency falls here too. As for crypto, then Scholars have not yet mentioned it as belonging to this category. And the rest, wheat, barley, dates and salt fall under the Jins (family) of edibles. _Then come the rules_ 1. Riba' Al-Fadl (usury of excess). 2. And Riba' An-Nasee'ah (usury of delay). When do these two rules apply and when do they not apply? _Examples_ If an item belongs to the same Jins (family) and also to the same Naw' (type) like gold nuggets vs gold jewelry, or good quality dates vs lower quality dates, then they have to be of the same amount on both sides/pairs. You can't say: _"Here, take 2kg of these nuggets or 2kg of lower quality dates and give me 1 kg of the jewelry or 1kg pf good quality dates."_ Otherwise you'll fall into Riba' Al-Fadl (usury of excess) on one side/pair. And they have to be bartered hand to hand without any delay. Meaning, no credit or installments is allowed. Otherwise you'll fall into Riba' An-Nasee'ah (usury of delay). But if they are of two different Naw' (type) but belong to the same Jins (family) like gold vs silver who belong to same family but not same type, or wheat vs barley or euros vs pound. Then Al-Fadl (increase, excess) on one side is allowed but not An-Nasee'ah (delay) during the transaction. No buying on credit or installments. And if they differ in family, like gold vs barley or dollars vs dates. Then both Al-Fadl and An-Nasee'ah are allowed. Meaning, you could buy food on credit/installments. But you can't buy gold or silver with cash on credit/installments, because An-Nasee'ah would take place then. You have to buy it with cash debit without installments. But if you barter it with wheat or barley or dates, then delay is allowed. Now we come to the 'illah (cause, effect) part. What about iron, copper, rice or apples and bananas then? Do they also have the same 'illah (cause, effect) as those six articles? Meaning, if you have 2 ton of low quality iron could you barter it for 1 ton of good quality iron? Or are the rules only restricted to the six Ribawi articles? That's where the Madhaahib (schools of jurisprudence) differ. So when Bilal رضي الله عنه brought good quality dates to the Prophet ﷺ, then Bilal رضي الله عنه said that he had bartered the the lower quality dates with fewer good quality dates. And so Rasulullah ﷻ told him that this is Riba'. And he told him to sell the lower quality dates for cash (gold, silver), and then to buy with the cash whatever good quality dates that the cash amounts to. Hopefully that explained it in an easy way.
@@Ibn_Abdulaziz Thanks fot the in depth explanation. However I see one issue in the reasoning. How can we come to the conclusion that currency falls in the same family as gold and silver? This is not the case . Currency is paper money backed by nothing but the full faith of the governments where gold and silver are real money with intrinsic value. At the time of the prophet, fulous ( copper coins) where also used for exchanges but were not categorized in the ribawi elements.
@MoustafaMokhtari-w1g Paper currency are Riba, it is produced by way of 'Eenah (repurchase agreement) and rahn (security pawn) and the bonds act as the rahn. That's how central banks all over the world, even Muslim countries produce currency. So in an ideal world, it would not have been allowed. But since it acts as a medium of exchange (moneys) then it gets the same 'illah as gold and silver (i.e. medium of exchange) and edibles.
_Riba' (usury) in a nutshell_ In order to understand Riba', then understanding illah (cause) need to be explained. The agreed upon sources of the Sharee'ah are four. Qur'an, Sunnah, Ijma' (consensus) and Qiyas (analogical inference). There are more sources, but the Madhaahib (schools of jurisprudence) agree upon those four. The former two are Revelation (Naqliyyah - transmitted). The latter two are 'Aqliyyah - rational). So when you hear: "the Naql" - then it means transmitted revealed evidence. And when you hear "the 'Aql" it means rational. _Qiyas_ For example, a new drug hits the streets called "blue high". Now, blue high is not mentioned in the Qur'an or Sunnah. So the Mujtahid (research scholar, jurist) uses Qiyas (analogy). And Qiyas has four principles: 1. The Asl (old case). 2. The Far' (the new case). 3. The 'illah (cause). 4. And the Hukm (ruling). So the Mujtahid finds an old case (Asl) that is mentioned in the Qur'an and Sunnah like Khamr (intoxicants, alcohol). Then he compares it with the new case (Far') due to both having a similar 'illah (effect, cause) which is that both intoxicate. And thus since the Hukm (ruling) of the old case (Asl) was Haram (unlawful), then the new case (Far') gets a similar ruling of being Haram (unlawful) by way of Qiyas (analogical inference). As for Riba' (usury), then there are two types. The Riba' that the Qur'an mentions vs the Riba' that the Sunnah/Hadith mention. And the type of Riba' that most people are familiar with, is the one that the Qur'an mentions, like taking a loan and paying the principal plus interest. And if your payment is delayed, then the creditor charges the debtor extra interest. This is the Riba' that the Qur'an mentions. And it is called the Riba' of Jahiliyyah (pre-Islamic ignorance), or the Riba' mentioned in the Qur'an. Then you have the second type of Riba', and that is the Riba' that the Sunnah mentions. And it is called Riba' of Buyu' (trade). It deals with bartering, specifically the six Ribawi articles: (1) gold, (2) silver, (3) wheat, (4) barley, (5) dates and (6) salt. _Jins (Famili) vs Naw' (type)_ Gold and silver fall under the same Jins (family) of medium of exchange. Paper currency falls here too. As for crypto, then Scholars have not yet mentioned it as belonging to this category. And the rest, wheat, barley, dates and salt fall under the Jins (family) of edibles. _Then come the rules_ 1. Riba' Al-Fadl (usury of excess). 2. And Riba' An-Nasee'ah (usury of delay). When do these two rules apply and when do they not apply? _Examples_ If an item belongs to the same Jins (family) and also to the same Naw' (type) like gold nuggets vs gold jewelry, or good quality dates vs lower quality dates, then they have to be of the same amount on both sides/pairs. You can't say: _"Here, take 2kg of these nuggets or 2kg of lower quality dates and give me 1 kg of the jewelry or 1kg pf good quality dates."_ Otherwise you'll fall into Riba' Al-Fadl (usury of excess) on one side/pair. And they have to be bartered hand to hand without any delay. Meaning, no credit or installments is allowed. Otherwise you'll fall into Riba' An-Nasee'ah (usury of delay). But if they are of two different Naw' (type) but belong to the same Jins (family) like gold vs silver who belong to same family but not same type, or wheat vs barley or euros vs pound. Then Al-Fadl (increase, excess) on one side is allowed but not An-Nasee'ah (delay) during the transaction. No buying on credit or installments. And if they differ in family, like gold vs barley or dollars vs dates. Then both Al-Fadl and An-Nasee'ah are allowed. Meaning, you could buy food on credit/installments. But you can't buy gold or silver with cash on credit/installments, because An-Nasee'ah would take place then. You have to buy it with cash debit without installments. But if you barter it with wheat or barley or dates, then delay is allowed. Now we come to the 'illah (cause, effect) part. What about iron, copper, rice or apples and bananas then? Do they also have the same 'illah (cause, effect) as those six articles? Meaning, if you have 2 ton of low quality iron could you barter it for 1 ton of good quality iron? Or are the rules only restricted to the six Ribawi articles? That's where the Madhaahib (schools of jurisprudence) differ. So when Bilal رضي الله عنه brought good quality dates to the Prophet ﷺ, then Bilal رضي الله عنه said that he had bartered the the lower quality dates with fewer good quality dates. And so Rasulullah ﷻ told him that this is Riba'. And he told him to sell the lower quality dates for cash (gold, silver), and then to buy with the cash whatever good quality dates that the cash amounts to. Hopefully that explained it in an easy way.
thankyou for explaining , i've a question regarding the items belonging to same type and family , does only the amount matter or the quality also matter the same way i.e what if 2 kg of poor quality dates for 2kg of good quality dates...
@@taniamir3854 You mean 24 karat (99% gold) vs 21 karat (87.5% gold) vs 18 karat (75% gold)? An-Nawawi رحمه الله said concerning the words of the Prophet ﷺ: “Do not sell gold for gold or silver for silver unless it is same for same": An-Nawawi رحمه الله said: The scholars said: This includes all kinds of gold and silver, both high and low quality, sound and broken, jewellery and ingots, and so on, whether it is pure or mixed with something else. There is scholarly consensus on all of that. [Sharh Muslim] You do what the Prophet ﷺ ordered Bilal: Narrated Abu Sa'eed al-Khudri رضي الله عنه: "Once Bilal brought Barni (i.e. a kind of dates) to the Prophet (ﷺ) and the Prophet (ﷺ) asked him: "From where have you brought these?" Bilal replied: "I had some inferior type of dates and exchanged two Sa' of it for one Sa' of Barni dates in order to give it to the Prophet to eat." Thereupon the Prophet ﷺ said: "Beware! Beware! This is definitely Riba (usury)! This is definitely Riba (Usury)! Don't do so, _but if you want to buy (a superior kind of dates) sell the inferior dates for money and then buy the superior kind of dates with that money."_ [Sahih al-Bukhari » Representation, Authorization, Business by Proxy - كتاب الوكالة » Hadith 2312] If you want 24 Karat, don't exchange it with the 18 Karat. Sell the 18 karat for cash and then buy whatever amount of 24 karat that the cash may give you. Or you melt the 18 karat and remove the platinum from it, then you barter the pure gold that you extracted which is now 24 karat ingot with 24 karat coin equally. That's my understanding. But ask the scholars.
@@taniamir3854 The Shaafi'is say that the 'illa (cause) for the six items being ribawi (usurous), is that they are medium of exchange (thamaniyya) and edibles. The Hanbalis say that it is weight and measure. So anything that is weighed and measured would include in the riba rules for the Hanbalis, like iron, copper etc. And all foodstuff would include in the Shafi'is. As for the Maalikis, they said that the 'illa is thamaniyyah (being currency) and edibles that can be stored for a long time. Thus bananas and apples wouldn't include but rice, corn, raisins would. The Maaliki opinion is the one that I favour although I'm a Salafi. I've not seen the Salafi opinion. Most of the Salafi scholars are Hanbalis so they follow the weight and measure. The illa for riba for the Maalikis would render all money (currency) and foodstuff that are stored a long time. Since iron isn't used as money, then no for the Maalikis. But copper has been used as money Fulus (sing. Fals) and thus copper or crypto would fall into the rules of Riba'. And Allah ﷻ Knows Best.
@@taniamir3854 Fiqh according to Quran and Sunnah 2 vol. By Muhammad Subhi. 2 vol, A Summary Of Islamic Jurisprudence by Shaykh Salih Al-Fawzan حفظه الله. Read Fatawa regarding it from islamqa dl you get a picture. And after s week you've mastered it insha'Allah. Nabil A. Saleh, Unlawful Gain and Legitimate Profit in Islamic Law: Riba, Gharar and Islamic Banking. And research papers on the Internet, slideshares.
Allah SWT states in The Holy Quran (paraphrased) that He “Wages a war with the one that engages in usury.” A war is not waged against adultery, for example. This illustrates the seriousness of the issue. A friend of a friend said, “You’re too extreme with regards to this issue,” to which I replied “Would you have sex outside of marriage or drink alcohol, just once?” Obviously, she wouldn’t, however, interest is serious 🧐
@@shabanatasleem3532 Absolutely brother even I always have this conversation with my friends in the west when they think of buying a house or car I tell them that this is the only sin which one is always in the sate of sinning because apart from this sin every other sin has a begging and an ending but this sin is so extreme that even when you die you are still at the state of sinning if the debt has been paid off and we can have a very long discussion about this. Salaam Alikum Aghi
Of course RIBA is forbidden, but what is riba in the Quran ? Some say that it is an interest-free loan, and if not repaid, the double is claimed by the creditor. It was like that at the time of the revelation of the Qur'an. What does the bank charge for using any banking service have to do with it? Which Hadith forbids banking or fees for access to a financial market? Perhaps you have more information than I do as a commentator.
@@Elhabib2025 My biced brother, RIBA is in a very simple words if you barrow some money or assets such gold and silver and so on from someone or from any sort of institutes such as banks or Org but you pay more than you narrowed base on a certain amount or percentages like 10% or 20% plus the capital which you barrowedbin the first place in addition they don't have anything to do with your loses if you lose in your money they still want their money and that 10 or 20% profit. Whereas in Islam Allah SWT and our beloved Prophet Muhammad PBUH prasuaded us to lent money you our brothers base on Qarz Hasana which means give him enough to payback his dues even if he could not payback base on bankrupcy or other financial reasons then forgive the money to him because he Allah SWT will grant way more than that he owes you.
fantastic video Almir, tho i must add that the added background nasheed might be neat and cool for some, I think its incredibly unfitting to the theme of the channel, the professional approach you had thus far and a topic as serious as riba. It kind of mimics the usual western-type music everyone uses, but it just a nasheed. Personally, videos without nasheed worked very well and were just as informative and entertaining. Salam alaykum
@@AlmirColanWrong again, the Qur'an (2 : 279) clearly specifically relates oppression/Zulm as the Illah/causative reason for the prohibition. Spot for post exchanges where equity/parity is not maintained in the transaction are usurious precisely because they amount to economic exploitation = Zulm. Almir, you need to update your knowledge - please read the Wikipedia page on Riba, in particular the peer reviewed articles by Prof. M. 0. Far00q cited therein. Fi Amanillah
Salam Alikum. Jazak Allah for the comment and may you be rewarded endlesssly for your efforts. I just recently started learning about islamic finances, and I am finding your videos simple and clear to understand. Regarding your example about the hadith and the dates, I just wanted to ask one dummy-question; I have now understood that if one were to transact some asset for another asset it needs to be in equal amount, for it to become a permissible transaction. My example is: If one were to transact a car for a car where you have one model that is older and less worth and on the other side you have one car that is newer and more worth, which one chooses to trade. This would not be a permissible transaction, considering the princible of trading equal to equal, I would suppose?
Very interesting, thank you for sharing this. One question I would love you to address, if possible of course: how does islamic finance handle inflation? Do sukkuk expected rates of return play a similar role to interest rates as a tool for attempting to keep inflation at a steady level? What do you think about this?
Also lot of people say in today’s time interest should not be haram, because with inflation we are loosing value by5-6% pa, even if banks/bonds/ are giving 5-6% return/interest the money technically is not increasing. Value stays the same. Please advise
Interest rates and rate of inflation are not same thing. Solution is not to say yes to riba but to fight that causes inflation. In two weeks insha’Allah we have video coming out that will talk about debasement of money and advice scholars in the past gave to Sultans about this issue
@@AlmirColanpaper money is only medium of exchange, it does not have intrinsic value. Link paper money to gold to get intrinsic value. As far as you mentioned to go to cause of inflation, in that case all inflation is caused by printing of paper money.
Are the fees for accessing financial markets comparable to usury? Is RIBA al Jahiliyya in the Quran similar to interest? Do you think all financial services should be free? Our Umma is poor today, perhaps because of radicalism. Thank you for your lights
@@naumanayub1348but gold supply and price are both artificially controlled by the US/UK. Imho better linked to a basket of products like PPI - which actually should be applied to price gouging - or to a basket of commodities, or to infrastructure value, etc, or to GDP. However GDP also contains financial products and financialised gains, so should be excluded anyway - so let's call it real output.
May Allah reward you for shedding light on such an important matter. However, I still have a question in my mind: If someone lends someone money e.g. 1000 dollars today and he gets his money back in one year. A year from now that 1000 might not be worth 1000 due to inflation and losing its purchasing power. Therefore, by this "logic" can't the lender claim a little more in return to cover the loss ?
7:10 its not about oppression but about prohibiting the exchange of same asset types in an exchange transaction 8:50 sell your product A and get the money B in exchange and use B to buy asset C
I strongly hold the view that since 15th. August 1971 when President Nixon delinked the Dollar from the " gold standard", real and sound money ceased to exist together with " Riba on the fictitous fiat paper currency at all". Modern fiat currency is " a mere ponzi scheme". Banking is never " an Islamic concept at all; so is Islamic banking. Islam had only " Islamic finances in the forms of Partnerships and Awqafs to finance both economic and social welfare. The character of proper, sound, islamic mpney and its integrity is corrupted and made " debt". Any discussions on " Riba must begin with the restoration of the proper character and integrity of " sound money that has instrinic value and stores value and wealth. Wabillahi Towfiq
change is a deeper concept, we as Muslims failed to provide an alternative or show how this system can collapse ... even those who do with whitepapers are focused only on theoretical doomsday... but they use the balanced economic approach. so when you dont have the alternative, you must follow on known rules. debase from currency to assets
As salamu Alaykum I have a question about Staking a Crypto currency for the purpose of Governance of a Blockchain. Determining what changes are to be made to the blockchain is granted only for those who have locked up a portion of their assets on the Blockchain. The length of time and the amount of the asset that you lock up determine your level of effectiveness in making or preventing changes to the Blockchain. An increase of the same asset is given for participating in this governance. Is this increase a compensation for a service rendered or Riba and an illegal transaction. Thank you in advance for any clarification.
@@AlmirColan- how about you referring to some peer reviewed literature yourself. Prof. Farooq's for example on the subject of al-Jassas which undermines your whole thesis of Riba = interest?!
@almirColan assalamu alaikum brother... can you list the islamic finance companies that have a halal loan process. I am starting to think that there is none.
Explain Sir how the banking system will run how the daily working in a bank and also how to take money for small business. Is there any country which is not working on interest
How is forex trading or crypto trading viewed in relation to the date hadith? Is fiat currencies accepted as as "money" Islamically? Can one treat fiat as a product and buy it using its gold value and sell it based on the same gold standard to legitimise it, (if that make s sense) ? Similarly, is it not best then to give loans at the value of gold at the time and expect the same gold value in return to avoid inflationary/other changes in fiat money. This also introduces the possible risk/benefit if gold prices change?
So what alternative do we have as Muslim living in the west? Is the product of Islamic finance is here in Australia is really Islamic? What makes them different from conventional Bank? Please clarify
Your explanation is fine but it resolves only part of problem. We need to understand why one is haram and other is not if we want to use it to solve similar problems. Unless this question is addressed conflict remains. My analysis is that the alternative that is blocked leads to massive injustice and exploitation while one allowed clarifies that shariah newer leave people to suffer injustice and zulm.
In Canada, putting your money in the checking account is very risky as there is tons of fraud. Buying gold is also not practical if we don't have family here since we can't travel with it nor leave it behind us unattended. Savings accounts are protected. My question for you. Is it halal to put money in the savings account to protect it and then give away any generated interest from it?
@almicolan brother most Islamic banks in Australia are acting as a broker between commercial banks and end user and they just label it Islamic loan which is exactly the same as conventional loan but more expensive
I was expecting an explanation on fractional reserves banking that even the Islamic banks are into. And how about the inflation rate hike over time? Is there any Islamic financial institution that can borrow me 10k USD to be paid 5 years later with 0% interest?
Thank you for the Video sir, so if a Bank buys for you the house and charges you more by financing, its islamic alowed? Because they own the house after buying it.... the call it interest. I thought everything where money is made out of money is forbidden?
If bank buys asset like home, and then they sell you that asset (even with higher price) than that is in general permissible. Of course they need to do it properly to satisfy conditions of sale.
I'm suprised nobody asked. I understand that the dates must have been changed to money (which is materially different) and then back to dates, then should we go for gold first when we try and do forex? Because when we change money for money, both are just paper backed with nothing basically, just different color.
AOA Brother, Back to my previous question of Novated car lease, Cost of finance "INTEREST" is involve in all type of agreements which means the purchase price of the vehicle (as well as any finance costs such as fees and interest) are calculated into the lease repayments taken from pre-tax income. Clearly disguise as lease but need your insight in this matter. JazaqAllah
My family and many families I know are from Afghanistan. They came over in the 80s. What they did was work all manner of jobs: taxi drivers, pizzarias, fried chicken restaurants, and so on, and they'd save their money for years. With the money they earned and saved they opened up their own businesses. Some people who had siblings or friends would pool their money together and then open a business. And now they're all wealthy. No riba required.
What’s the Hadith reference where the prophet (pbuh) suggested to convert to a currency? My understanding is that dates (or anything that has shelf life) used to be used as a currency in those days and hence the prophet (pbuh) mentioned it as riba.
Dates were indeed used in barter, but it would be a stretch to call them a currency in any way similar to functional money as we understand it today. Dates are perishable, which limits their effectiveness as a store of value, and they are not a very good unit of account for other goods universally due to their variability in quality, size and availability. This makes them less practical as a form of currency compared to more durable and universally accepted forms of money. Hadith: sunnah.com/bukhari:2312
Wrt video ‘The trouble with riba explained’ at 34:50- You said it is permissible to exchange land in Preston which is 500 square metres for 1000 square metres land in Roxbury Park. I thought it would NOT be permissible because land is not part of the commodity 6 mentioned in Hadith (gold, silver, wheat, barley, dates, salt) and it’s not something we buy on weight or volume, therefore does not apply to the 5th category of the rules or Riba/Trade. Please clarify.
No. Riba is direct link between landlord and bank. Tenant shares no responsibility in originating loan. Between tenant and landlord is legitimate contract of rent.
Salam brother, I don’t understand 😔 can you do a vidio of how a perfect islamic system would work in modern times? Or would we have to risk storing gold coins in our houses?
Step 1: don't have Riba anymore Step 2: create a 1:1 storage of gold or oder Metals in the bank Step 3: give out paper money or digital one but with a 1:1 ratio And that's it.
@AlmirColan just to clarify. if we exchange a new car with old car, then the new car owner will take the profit. Is this come under riba. Coz it is same as exchanging low quality dates with high quality dates, taking the differences.
I have a question. If riba is not about oppression and financial outcomes. And riba tranction can appear identical to halal one other than of tinciality. Like exchange dates versus selling dates then exchanging. How is one cursed and other is blessed. How is one harms society and other benefits society. Maybe there's something wrong with my thinking. I need to know how it's different
All riba is haram, whether it is a big part or just the dust of it. That is the point here. The wisdom behind this is that Islam forces us to use money not as a commodity for sale but as a medium of exchange and to profit only from real economic activities. The point here is about what building blocks we are making and what sort of economy we are building. That is the ultimate outcome of justice and injustice, oppression, or the opposite of it.
So mortgage, even though it’s exchanging money for property (owned by bank until all money + interest or business profit is paid back) then back to money (installments paid by user while using the property) is Riba?
@@AlmirColan but what about Islamic Bank brother do they really care about profit and loss if I borrow money from Islamic bank say $500k loan and let say if the house is destroyed in fire no insurance or for whatever reason the house now sells for $200k then the islamic bank will not ask me for the money? if yes then its all about money at the end of the day..... so what's the difference between Islamic vs conventional banks
The Qur'an (2 : 279) clearly specifically relates oppression/Zulm as the Illah/causative reason for the prohibition. Spot transactions where equity/parity is not maintained in the transaction are usurious precisely because they amount to economic exploitation = Zulm. This is regardless of the amount, of course. You need to update your knowledge - please read the Wikipedia page on Riba, in particular the peer reviewed articles by Prof. M. 0. Far00q cited therein.
What is the point you are refuting? You should quote what I said and then refute it. To make it easier for you, I stated that some argue that riba only refers to usury, or an excessive amount of riba, as a form of exploitation and oppression. My criticism is directed at those who claim that riba only applies when there is exploitation or oppression. This does not mean we can oppress or exploit people, but rather, it means that exploitation is not the only reason riba is prohibited. This is like saying riba only occurs when interest is 50% or 100%. I am arguing that even a 1% interest is riba because it violates the principle of equal exchange, which is set at 1 to 1. Any increase is considered riba. I hope you understand that I am not saying oppression is not part of riba, but that it is not the only aspect. Whether small or large, any amount of riba is still riba. If you have an issue with that, please bring up a specific point. As you can see from the Hadith I quoted, even in cases of exchange without oppression or exploitation, it was still referred to as riba. In any case if you are going to respond provide direct quote and we can see what the confusion is.
@@AlmirColan- I am claiming your arguments are simplistic and problematic from the perspective of the peer reviewed literature. You do the Muslims a disservice by not conducting a proper literature review and then claiming some kind of expertise. Spot transactions if not like for like are obviously Riba because they amount to economic exploitation. Regulated bank interest, on the other hand, is not exploitative (in the main) and not considered usury as a result. You seem to ignore these fine differences and points which is not a good sign of a knowledgeable actor. Once again I encourage you and your viewers to read the Wikipedia page on Riba and the peer reviewed articles therein. The traditionalist interest-Riba equivalency which you appear to be advocating is problematic.
Brother almir, just wanted to point you towards some sayings that the the types of things that we cannot increase when trading are limited to the hadith, so only these 6 items we cannot trade with increase rest we can, hence a lot of people allow the increase in paper money because its not included in the 6 items mentioned in hadith... so we need some clarity and someone who can actually put and draw the full picture instead of bits and pieces taken from here and there please.. if its possible to have someone with you maybe to help it would be great for all of us who are looking and seeking the truth...jazakkallah khair on your hard work already brother..❤
@@maziz3003 this is just short clarification video - see detailed explanation in video called The Trouble with Riba (interest) explained ruclips.net/video/18FJgXjqW0w/видео.html
Ustaad i had a question relating to mulims minorities in non-muslim majority countries, Are the muslims ok with the interest on the money accumulated in the bank if they are in a majority non-muslim country?
Investing in securities is halal as long as you invest in the companies that are not involved in haram acts.. Gambling, banking etc these companies are involved in haram stuff and should not be invested in..
@@gulammohiddin5747 also, the ratio of [interest-bearing debt, securities and assets] vs [market capitalization] that a company has will determine if it is permissible to invest in it or not
Walaykumu salam, it is best to speak with people you know and usually take advice from in your area about these things. They can, insha'Allah, guide you. I personally have not done a comparative study of the various options out there, and I avoid giving these kinds of recommendations and financial advice to the public.
Going by your technical definition, Islamic finance need not be necessarily better than traditional finance as both can lead to similar outcomes. In my view separating the process from the outcome is a grave mistake. Islamic finance must lead to better outcomes if it is to be adopted.
You are looking at a single transaction, which does not tell you anything. The point of difference is what you are building on a systemic level. See the video about "How Islamic Finance Works" for a bit more detail. ruclips.net/video/r7GKIFHTBTA/видео.html
i respond to a lot of people that way. but i request you to revise the video. or correct me. the concept isn't to change to money , but a different form example in age of barter trade. I also have another question in this regards but few people have the knowledge depth. What is the ruling / idea when in current days we "presume delivered", by paperwork, i dont PERSONALLY receive such quantity, just to have someone i trust to have seen (or video) and swapped it again out, it would be nice if you touch on that with Riba perspective
So buying a home in an Islamic banking system would entail the bank buying the home first eg at the seller’s asking price of 300k and the bank can then sell the home to the buyer at a higher price or at a profit eg 400k which the buyer can repay over a period of 10 years - is this legitimate?
Salaam, inshallah you are well. That is correct. I am no scholar but I have been looking into this matter for some time. The key difference between a conventional mortgage v an Islamic mortgage is as follows: A conventional mortgage loans you money to buy a house and then charges you interest on the loan they have given over the course of a certain period. The product is NOT the house but the money in this case - therefore, money is paid for money, money is being made from money which is riba. With Islamic banks, it is like a shared ownership agreement (for some like Gatehouse Bank, Stride Up - if I have understood their model correctly). If you want a property for £100k, you put a down payment of £20k (you have 20% equity in the house) and the the Islamic Bank provides the remaining £80k, meaning the Islamic Bank has 80% equity. You then pay a monthly rental fee, which essentially buys back your share in the house, meaning at the end of the period e.g. 20,25,30 etc years, the house will be yours (some banks have a balloon payment at the end which you have to pay - I believe StrideUp does this). Hope this helps and offers some guidance. As mentioned, I am no way any sort of expert on this matter - I am a layman who is looking to buy my house in an halal way. I am based in the U.K. where there are some Islamic Banks that offer sharia complaint loans but it is very early days here too tbh. If I have made any mistakes, please do correct me (or anyone else who reads this comment) - I’m trying to learn and ensure I understand this properly. JazakAllah Khair. May Allah bless you in your journey.
The bank has to own the house and then sell it to you .. but no penalties fees no late fees .. because if the bank does charge that then it is Riba .. no banks will buy the house for you .. they will lend you money with interest
Salaam Almir, thank you for sharing your knowledge for us all to benefit. The money today is debt, and it is "printed" paper money. The central banks print additional paper money such as under QE. By doing so they dilute the money that we hold and this plays a part of why prices are inflated. If our paper money is being diluted and so becoming worth less due to the central bank, ie issuer of paper money, why can we not accept "interest" on our paper money in the bank ?
But the same could happen with gold, sliver, or any other tool used to present wealth. It is not about the paper. Now, it is true that the government is mostly corrupt and simply hides its failure by printing more papers. But that is a different subject. Imagine the government finds a way to instantly make gold.
@@ssm2UTTell me how exactly gold can be mass printed or mass extracted? No matter how much gold your nation has, it cannot be printed and masqueraded into the trillions and trillions that fiat has. Most of this money doesn’t even exist as paper notes. It’s just IOUs that the citizens pay back in taxes. In Islam, we only pay Zakat which the govt is not able to loan out to other countries as debt on interest. It’s not the same at all, you just can’t see the difference
Interest is not equal to inflation at your bank. You should put money to work and make more than inflation anyway. Between inflation and zakat if you money just sits then you have a problem. Solution is not riba
@@AlmirColan You are talking like you’ve learned economics in the west. Interest causes inflation. The response to inflation is not to “not let your money sit”. No matter how much your money is moving or sitting, as long as you are a Muslim who doesn’t engage in interest based economic system, you will be drowned by the sea of thieves who manipulate interest to make wealth. And their innate greed to destroy competition and maximize profit causes inflation anyway. And that inflation is only caused by those who operate within a fiat system of mass printing in the first place. There would be no inflation if our government wasn’t 30+ trillion in debt and handing us the IOU in taxes. This is why the cost of living is so high because people have to compete with the dollar being stretched like rubber alongside people who engage in interest based businesses and appeasing supply and demand. You should know this if you were an ethical human being let alone a Muslim.
@@AlmirColan The Qur'an (2 : 279) clearly specifically relates oppression/Zulm as the Illah/causative reason for the prohibition. Spot transactions where equity/parity is not maintained in the transaction are usurious precisely because they amount to economic exploitation = Zulm. This is regardless of the amount, of course. You need to update your knowledge - please read the Wikipedia page on Riba, in particular the peer reviewed articles by Prof. M. 0. Far00q cited therein.
Why is the loaned amount/house priced according to LIBOR, why can’t Islamic banks have their own system similar to libor? Why are loans/homes more expensive by Islamic banks than regular banks? Please explain this
Labor ceased to exist, but I understand what you are saying. Price is an important factor, but just because something is priced a certain way or is more expensive, it doesn’t tell us much. For example, you would expect organic food to cost more, or if a financial institution is smaller, their costs might be higher, etc. These are business decisions and reasons. What we cannot judge is, for example, halal meat being haram simply because its price is not to our liking.
@@AlmirColan your absolutely right, what I feel is that banks and halal food companies are ripping customers off knowing full well we the customers haven't much options
It isn't just modern banking, the core of all government fiat currencies is Riba. Fiat currencies are lent into existence with roba. Muslims need to use money that doesn't have Riba baked into the base layer. The only 2 viable options are gold and Bitcoin.
Gold is very speculative (gharar), and is wealth that does not circulate. It sits in a vault or under your bed. Bitcoin has no intrinsic value, its just a computer record. It facilitates a lot of criminality (money laundering) and scams.
@@SAL-fs1mr I am one of those people Almir is talking about that dont accept the assertion interest=riba. Riba was about exploitation by moneylenders of poor debtors like loan sharking. So I dont accept the concept of "riba currencies". Almir discusses the 1-for - 1 rule from hadiths which were more likely about making change with a moneylender, not about investment. Otherwise it does not make sense - why would someone exchange gold for the same gold with a moneylender?
Us Salam alikum brother i sincerely appreciate your video . I just have few questions if u can help me with that 1 how do we muslim purchase a home without going to bank ? 2 if I open a buisness where I lend people money and I have 10 employees and bills and rent to pay what can I charge to the customers for cost of doing buisness . Everybody I listened to only tell don't buy a house from bank don't buy a car from bank but I don't find any solutions if we the muslim wants to buy a house .
Let an islamic bank buy the house then sell it to you with profit and you pay it over the years, if this is not available in your country dont buy a house with regular banks because riba is a major sin and Allah promised war on people who practice it
my aunt from europe send me money as Euro, while i only able to use it if i exchange it as rupiah.if she sends me goods as a medium. the tax and cargo costs would exceed the amount of money itself. what should i do to avoid riba?
@@AlmirColan Why won't it be a problem? Exchange rates are highly influenced by interest rates set forth by respective Central Banks of the participating nations.
@@aaymanbd in this case the fee is a service fee, not a devaluation of your property. They won't charge you a basket of dates in exchange for giving you a service, they will take the exchange fee from a usable currency (euros, rupee, etc.)
Aslam alaikum Almir, I personally have a very deep question. I have read some fatwa on this but I'm not personally satisfied with the answers. If someone sold item X for 10,000, and then said since you cant pay in full, I will sell it to you for 12,000 over 10 years, is it riba? If it isnt, then what's the difference of buying it at 10,000 with a 10 year term @ 1.8% which totals up to 12000. There is no difference and is there any hadith on this. Thank you.
Walaykumu salam. If someone sold an item for 10k and then later asked for more than that, it would be riba because the second time, it's increasing money from debt. However, if the item was originally priced at 12k (sale with markup) and you were given 10 years to pay it off, then that is a sale. This is the confusion that verse 2:275 addresses. Basically, making profit from the sale of money for money is an illegitimate profit that we call riba. On the other hand, profit from the sale of an asset is legitimate profit.
@@AlmirColan thank you for the answer. I pray that Allah protects us all from Riba even though our times are tough and may Allah reward you for what you are doing for the ummah.
Salam brother some Islamic Finance Institutions here in India offering loans to the people, they say that they don't charge interest for the loan but they charge processing fees which is equivalent to commercial bank interest, can we label the processing fees as interest?
@@ShahabazIbnShahab processing fees or service fees are not the same as interest rates for the very reason that processing fees are derived from the cost of labor + margins to justify the disbursement or lending of loans. Interest is derived from the "cost of time" and the risk incurred for lending money.
Exchanging a pound of poor quality rice for half a pound of higher quality rice is riba. It’s like for like. This means that Rupees and USD must be equal in value which promotes equality in money. You can exchange gold for silver but not gold for gold unless it’s the same. For example, you have 300 Abbasid gold coins, it must be traded for the equivalent of 300 Roman gold coins. This is why people have been robbed of their purchasing power and ability to make a living. Your Islamic scholars are LYING to you. They are the scholars that Allahs messenger feared for his umma even more than Dajjal.
![BRASIL vs. URUGUAY [1-1] | RESUMEN | ELIMINATORIAS SUDAMERICANAS | FECHA 12](http://i.ytimg.com/vi/-hWBAuxF1eY/mqdefault.jpg)
Is Exploitation the Reason for the Prohibition of Riba?
Some argue that riba (interest) is only prohibited because it exploits others, suggesting that small amounts of riba could be acceptable. This mirrors what Christians did: claiming large amounts of riba (which they call usury) are haram due to exploitation, but small amounts (called interest) are halal.
So let's make this clear-whether it's a small or large amount, exploitation or not, all riba is haram. Why? To prevent any possibility of injustice and exploitation. By adding the condition of exploitation instead of understanding it technically (for instance, excess from money-to-money transactions), we might inadvertently allow exploitation to happen.
As Muslims, we don't look at the amount of riba; we understand it's prohibited in any form. I delve into the wisdom behind this prohibition, highlighting the prevention of exploitation and injustice. Watch the discussion starting at 15-16 minutes in the video: ruclips.net/video/18FJgXjqW0w/видео.html
i have left a company name XCEEDANCE PVT. LTD. . I was assigned a position as RISK ANALYST. It was offering Rs.50k/month(indian currency). I let as soon as i came to know that this international american based company only work for insurance and it associated work. So, did i do right according to islamic principle? PLZ RESPONSE
Imagine you buy a house using gold as the medium of exchange , rather than money . Over time , you repay the loan by returning the same weight in gold , bit by bit . However , the price of gold is likely to rise over the next 20 years, witch means it wil cost you more money to buy the gold . Is this Halal ?
What do you think about goverments printing money without growth. I live in Turkey, even I do same job, my salary increase 8 times (multiplied by 8) but my purchase power halved. Because of unfair printing money of government.
@@ilhantezel6125 What has this to do with my question ??? ( usa an europe are printing 1000X more and their euro and dollar stay the same , its all about acting and putting pressor to kill you if you are aginst the dollar ! )
@@soupvis2616 who cares if paper currency is rising. If it is exchanged in gold then returning gold same amount is the point. If you don't return same amount the lender will be loser. Anybody will hardly give you money let alone at a loss...
$1 for $1.01 or 2kg of dates for 1kg of dates is haram so you must convert to a diferrent medium and that means exposing yourself to market forces such as risk, supply and demand to essentially acheive the same outcome. That is just beautiful becuase riba transactions are not exposed to market risk and do not circulate money broadly in the economy rather it has a concentrating effect to few hands. Perfect solutions yet again by islam
"circulate money" ... That is the whole purpose of banks and capital markets, to accumulate savings and transfer it to borrowers who can use the money.
@@roberthannah7983this is called credit creation, which then creates a bubble. Everything seems to be flourishing until the bubble bursts. Remember the 2007-8 crisis, and it’s not just one example.
_Riba' (usury) in a nutshell_
In order to understand Riba', then understanding illah (cause) need to be explained.
The agreed upon sources of the Sharee'ah are four. Qur'an, Sunnah, Ijma' (consensus) and Qiyas (analogical inference). There are more sources, but the Madhaahib (schools of jurisprudence) agree upon those four.
The former two are Revelation (Naqliyyah - transmitted). The latter two are 'Aqliyyah - rational). So when you hear: "the Naql" - then it means transmitted revealed evidence. And when you hear "the 'Aql" it means rational.
_Qiyas_
For example, a new drug hits the streets called "blue high". Now, blue high is not mentioned in the Qur'an or Sunnah. So the Mujtahid (research scholar, jurist) uses Qiyas (analogy). And Qiyas has four principles:
1. The Asl (old case).
2. The Far' (the new case).
3. The 'illah (cause).
4. And the Hukm (ruling).
So the Mujtahid finds an old case (Asl) that is mentioned in the Qur'an and Sunnah like Khamr (intoxicants, alcohol). Then he compares it with the new case (Far') due to both having a similar 'illah (effect, cause) which is that both intoxicate. And thus since the Hukm (ruling) of the old case (Asl) was Haram (unlawful), then the new case (Far') gets a similar ruling of being Haram (unlawful) by way of Qiyas (analogical inference).
As for Riba' (usury), then there are two types. The Riba' that the Qur'an mentions vs the Riba' that the Sunnah/Hadith mention. And the type of Riba' that most people are familiar with, is the one that the Qur'an mentions, like taking a loan and paying the principal plus interest. And if your payment is delayed, then the creditor charges the debtor extra interest. This is the Riba' that the Qur'an mentions. And it is called the Riba' of Jahiliyyah (pre-Islamic ignorance), or the Riba' mentioned in the Qur'an.
Then you have the second type of Riba', and that is the Riba' that the Sunnah mentions. And it is called Riba' of Buyu' (trade). It deals with bartering, specifically the six Ribawi articles:
(1) gold, (2) silver,
(3) wheat, (4) barley, (5) dates and (6) salt.
_Jins (Famili) vs Naw' (type)_
Gold and silver fall under the same Jins (family) of medium of exchange. Paper currency falls here too. As for crypto, then Scholars have not yet mentioned it as belonging to this category.
And the rest, wheat, barley, dates and salt fall under the Jins (family) of edibles.
_Then come the rules_
1. Riba' Al-Fadl (usury of excess).
2. And Riba' An-Nasee'ah (usury of delay).
When do these two rules apply and when do they not apply?
_Examples_
If an item belongs to the same Jins (family) and also to the same Naw' (type) like gold nuggets vs gold jewelry, or good quality dates vs lower quality dates, then they have to be of the same amount on both sides/pairs. You can't say: _"Here, take 2kg of these nuggets or 2kg of lower quality dates and give me 1 kg of the jewelry or 1kg pf good quality dates."_ Otherwise you'll fall into Riba' Al-Fadl (usury of excess) on one side/pair. And they have to be bartered hand to hand without any delay. Meaning, no credit or installments is allowed. Otherwise you'll fall into Riba' An-Nasee'ah (usury of delay).
But if they are of two different Naw' (type) but belong to the same Jins (family) like gold vs silver who belong to same family but not same type, or wheat vs barley or euros vs pound. Then Al-Fadl (increase, excess) on one side is allowed but not An-Nasee'ah (delay) during the transaction. No buying on credit or installments.
And if they differ in family, like gold vs barley or dollars vs dates. Then both Al-Fadl and An-Nasee'ah are allowed. Meaning, you could buy food on credit/installments. But you can't buy gold or silver with cash on credit/installments, because An-Nasee'ah would take place then. You have to buy it with cash debit without installments. But if you barter it with wheat or barley or dates, then delay is allowed.
Now we come to the 'illah (cause, effect) part. What about iron, copper, rice or apples and bananas then? Do they also have the same 'illah (cause, effect) as those six articles? Meaning, if you have 2 ton of low quality iron could you barter it for 1 ton of good quality iron? Or are the rules only restricted to the six Ribawi articles? That's where the Madhaahib (schools of jurisprudence) differ.
So when Bilal رضي الله عنه brought good quality dates to the Prophet ﷺ, then Bilal رضي الله عنه said that he had bartered the the lower quality dates with fewer good quality dates. And so Rasulullah ﷻ told him that this is Riba'. And he told him to sell the lower quality dates for cash (gold, silver), and then to buy with the cash whatever good quality dates that the cash amounts to.
Hopefully that explained it in an easy way.
@@Ibn_Abdulaziz Thanks fot the in depth explanation. However I see one issue in the reasoning.
How can we come to the conclusion that currency falls in the same family as gold and silver?
This is not the case . Currency is paper money backed by nothing but the full faith of the governments where gold and silver are real money with intrinsic value.
At the time of the prophet, fulous ( copper coins) where also used for exchanges but were not categorized in the ribawi elements.
@MoustafaMokhtari-w1g Paper currency are Riba, it is produced by way of 'Eenah (repurchase agreement) and rahn (security pawn) and the bonds act as the rahn. That's how central banks all over the world, even Muslim countries produce currency. So in an ideal world, it would not have been allowed. But since it acts as a medium of exchange (moneys) then it gets the same 'illah as gold and silver (i.e. medium of exchange) and edibles.
May Allah bless you guys for clarifying these issues. Jazzakallahkhair.
May Allah spread this information and make a means of guidance for others. Ameen.
Wow i watched your shepherd's framework and this one
I'm your new subscriber now and i hope i learn more about Islamic finance from you sir
_Riba' (usury) in a nutshell_
In order to understand Riba', then understanding illah (cause) need to be explained.
The agreed upon sources of the Sharee'ah are four. Qur'an, Sunnah, Ijma' (consensus) and Qiyas (analogical inference). There are more sources, but the Madhaahib (schools of jurisprudence) agree upon those four.
The former two are Revelation (Naqliyyah - transmitted). The latter two are 'Aqliyyah - rational). So when you hear: "the Naql" - then it means transmitted revealed evidence. And when you hear "the 'Aql" it means rational.
_Qiyas_
For example, a new drug hits the streets called "blue high". Now, blue high is not mentioned in the Qur'an or Sunnah. So the Mujtahid (research scholar, jurist) uses Qiyas (analogy). And Qiyas has four principles:
1. The Asl (old case).
2. The Far' (the new case).
3. The 'illah (cause).
4. And the Hukm (ruling).
So the Mujtahid finds an old case (Asl) that is mentioned in the Qur'an and Sunnah like Khamr (intoxicants, alcohol). Then he compares it with the new case (Far') due to both having a similar 'illah (effect, cause) which is that both intoxicate. And thus since the Hukm (ruling) of the old case (Asl) was Haram (unlawful), then the new case (Far') gets a similar ruling of being Haram (unlawful) by way of Qiyas (analogical inference).
As for Riba' (usury), then there are two types. The Riba' that the Qur'an mentions vs the Riba' that the Sunnah/Hadith mention. And the type of Riba' that most people are familiar with, is the one that the Qur'an mentions, like taking a loan and paying the principal plus interest. And if your payment is delayed, then the creditor charges the debtor extra interest. This is the Riba' that the Qur'an mentions. And it is called the Riba' of Jahiliyyah (pre-Islamic ignorance), or the Riba' mentioned in the Qur'an.
Then you have the second type of Riba', and that is the Riba' that the Sunnah mentions. And it is called Riba' of Buyu' (trade). It deals with bartering, specifically the six Ribawi articles:
(1) gold, (2) silver,
(3) wheat, (4) barley, (5) dates and (6) salt.
_Jins (Famili) vs Naw' (type)_
Gold and silver fall under the same Jins (family) of medium of exchange. Paper currency falls here too. As for crypto, then Scholars have not yet mentioned it as belonging to this category.
And the rest, wheat, barley, dates and salt fall under the Jins (family) of edibles.
_Then come the rules_
1. Riba' Al-Fadl (usury of excess).
2. And Riba' An-Nasee'ah (usury of delay).
When do these two rules apply and when do they not apply?
_Examples_
If an item belongs to the same Jins (family) and also to the same Naw' (type) like gold nuggets vs gold jewelry, or good quality dates vs lower quality dates, then they have to be of the same amount on both sides/pairs. You can't say: _"Here, take 2kg of these nuggets or 2kg of lower quality dates and give me 1 kg of the jewelry or 1kg pf good quality dates."_ Otherwise you'll fall into Riba' Al-Fadl (usury of excess) on one side/pair. And they have to be bartered hand to hand without any delay. Meaning, no credit or installments is allowed. Otherwise you'll fall into Riba' An-Nasee'ah (usury of delay).
But if they are of two different Naw' (type) but belong to the same Jins (family) like gold vs silver who belong to same family but not same type, or wheat vs barley or euros vs pound. Then Al-Fadl (increase, excess) on one side is allowed but not An-Nasee'ah (delay) during the transaction. No buying on credit or installments.
And if they differ in family, like gold vs barley or dollars vs dates. Then both Al-Fadl and An-Nasee'ah are allowed. Meaning, you could buy food on credit/installments. But you can't buy gold or silver with cash on credit/installments, because An-Nasee'ah would take place then. You have to buy it with cash debit without installments. But if you barter it with wheat or barley or dates, then delay is allowed.
Now we come to the 'illah (cause, effect) part. What about iron, copper, rice or apples and bananas then? Do they also have the same 'illah (cause, effect) as those six articles? Meaning, if you have 2 ton of low quality iron could you barter it for 1 ton of good quality iron? Or are the rules only restricted to the six Ribawi articles? That's where the Madhaahib (schools of jurisprudence) differ.
So when Bilal رضي الله عنه brought good quality dates to the Prophet ﷺ, then Bilal رضي الله عنه said that he had bartered the the lower quality dates with fewer good quality dates. And so Rasulullah ﷻ told him that this is Riba'. And he told him to sell the lower quality dates for cash (gold, silver), and then to buy with the cash whatever good quality dates that the cash amounts to.
Hopefully that explained it in an easy way.
thankyou for explaining , i've a question regarding the items belonging to same type and family , does only the amount matter or the quality also matter the same way i.e what if 2 kg of poor quality dates for 2kg of good quality dates...
@@taniamir3854 You mean 24 karat (99% gold) vs 21 karat (87.5% gold) vs 18 karat (75% gold)?
An-Nawawi رحمه الله said concerning the words of the Prophet ﷺ: “Do not sell gold for gold or silver for silver unless it is same for same":
An-Nawawi رحمه الله said:
The scholars said: This includes all kinds of gold and silver, both high and low quality, sound and broken, jewellery and ingots, and so on, whether it is pure or mixed with something else. There is scholarly consensus on all of that.
[Sharh Muslim]
You do what the Prophet ﷺ ordered Bilal:
Narrated Abu Sa'eed al-Khudri رضي الله عنه: "Once Bilal brought Barni (i.e. a kind of dates) to the Prophet (ﷺ) and the Prophet (ﷺ) asked him: "From where have you brought these?" Bilal replied: "I had some inferior type of dates and exchanged two Sa' of it for one Sa' of Barni dates in order to give it to the Prophet to eat." Thereupon the Prophet ﷺ said: "Beware! Beware! This is definitely Riba (usury)! This is definitely Riba (Usury)! Don't do so, _but if you want to buy (a superior kind of dates) sell the inferior dates for money and then buy the superior kind of dates with that money."_
[Sahih al-Bukhari » Representation, Authorization, Business by Proxy - كتاب الوكالة » Hadith 2312]
If you want 24 Karat, don't exchange it with the 18 Karat. Sell the 18 karat for cash and then buy whatever amount of 24 karat that the cash may give you. Or you melt the 18 karat and remove the platinum from it, then you barter the pure gold that you extracted which is now 24 karat ingot with 24 karat coin equally.
That's my understanding. But ask the scholars.
@@taniamir3854 The Shaafi'is say that the 'illa (cause) for the six items being ribawi (usurous), is that they are medium of exchange (thamaniyya) and edibles. The Hanbalis say that it is weight and measure. So anything that is weighed and measured would include in the riba rules for the Hanbalis, like iron, copper etc. And all foodstuff would include in the Shafi'is. As for the Maalikis, they said that the 'illa is thamaniyyah (being currency) and edibles that can be stored for a long time. Thus bananas and apples wouldn't include but rice, corn, raisins would. The Maaliki opinion is the one that I favour although I'm a Salafi. I've not seen the Salafi opinion. Most of the Salafi scholars are Hanbalis so they follow the weight and measure. The illa for riba for the Maalikis would render all money (currency) and foodstuff that are stored a long time. Since iron isn't used as money, then no for the Maalikis. But copper has been used as money Fulus (sing. Fals) and thus copper or crypto would fall into the rules of Riba'. And Allah ﷻ Knows Best.
@@Ibn_Abdulaziz jazakAllah , can you suggest me a book to understand riba in detail and to know islamic finance system
@@taniamir3854 Fiqh according to Quran and Sunnah 2 vol. By Muhammad Subhi.
2 vol, A Summary Of Islamic Jurisprudence by Shaykh Salih Al-Fawzan حفظه الله.
Read Fatawa regarding it from islamqa dl you get a picture. And after s week you've mastered it insha'Allah.
Nabil A. Saleh, Unlawful Gain and Legitimate Profit in Islamic Law: Riba, Gharar and Islamic Banking.
And research papers on the Internet, slideshares.
Can you please talk about inflation and how to deal with money loosing value. Jazak Allah kair.
RIBA is one of the most clear comments of Allah SWT where no one can dispute or come up with an excuse to commit it.
Allah SWT states in The Holy Quran (paraphrased) that He “Wages a war with the one that engages in usury.” A war is not
waged against adultery, for example. This illustrates the seriousness of the issue. A friend of a friend said, “You’re too extreme with regards to this issue,” to
which I replied “Would you have sex outside of marriage or drink
alcohol, just once?” Obviously, she wouldn’t, however, interest is serious 🧐
@@shabanatasleem3532
Absolutely brother even I always have this conversation with my friends in the west when they think of buying a house or car I tell them that this is the only sin which one is always in the sate of sinning because apart from this sin every other sin has a begging and an ending but this sin is so extreme that even when you die you are still at the state of sinning if the debt has been paid off and we can have a very long discussion about this. Salaam Alikum Aghi
Of course RIBA is forbidden, but what is riba in the Quran ?
Some say that it is an interest-free loan, and if not repaid, the double is claimed by the creditor. It was like that at the time of the revelation of the Qur'an. What does the bank charge for using any banking service have to do with it? Which Hadith forbids banking or fees for access to a financial market? Perhaps you have more information than I do as a commentator.
@@Elhabib2025
My biced brother,
RIBA is in a very simple words if you barrow some money or assets such gold and silver and so on from someone or from any sort of institutes such as banks or Org but you pay more than you narrowed base on a certain amount or percentages like 10% or 20% plus the capital which you barrowedbin the first place in addition they don't have anything to do with your loses if you lose in your money they still want their money and that 10 or 20% profit.
Whereas in Islam Allah SWT and our beloved Prophet Muhammad PBUH prasuaded us to lent money you our brothers base on Qarz Hasana which means give him enough to payback his dues even if he could not payback base on bankrupcy or other financial reasons then forgive the money to him because he Allah SWT will grant way more than that he owes you.
Simple and effective explanation. Jazaka Allah Khayran
Finally I found someone giving knowledge not preach
Beautiful! JazaakAllah Khair.
JazakAllahu Khayran, really needed
I am Following your videos from long time.
MashaAllaah great lesson.
commenting for reach. Jazakum Allah khayr
💪
@@AlmirColan- I see you are still peddling the mythology of Riba = interest.
Allah say it in Quran there will be time riba will be like normal things .
Brother you right and may Allah almighty help us all amen .
Jazakallah Khair for sharing this hadeeth
fantastic video Almir, tho i must add that the added background nasheed might be neat and cool for some, I think its incredibly unfitting to the theme of the channel, the professional approach you had thus far and a topic as serious as riba. It kind of mimics the usual western-type music everyone uses, but it just a nasheed. Personally, videos without nasheed worked very well and were just as informative and entertaining. Salam alaykum
I will let the editor know
May Allah bless you for your efforts
@@AlmirColanWrong again, the Qur'an (2 : 279) clearly specifically relates oppression/Zulm as the Illah/causative reason for the prohibition.
Spot for post exchanges where equity/parity is not maintained in the transaction are usurious precisely because they amount to economic exploitation = Zulm.
Almir, you need to update your knowledge - please read the Wikipedia page on Riba, in particular the peer reviewed articles by Prof. M. 0. Far00q cited therein.
Fi Amanillah
Salam Alikum. Jazak Allah for the comment and may you be rewarded endlesssly for your efforts. I just recently started learning about islamic finances, and I am finding your videos simple and clear to understand. Regarding your example about the hadith and the dates, I just wanted to ask one dummy-question; I have now understood that if one were to transact some asset for another asset it needs to be in equal amount, for it to become a permissible transaction. My example is: If one were to transact a car for a car where you have one model that is older and less worth and on the other side you have one car that is newer and more worth, which one chooses to trade. This would not be a permissible transaction, considering the princible of trading equal to equal, I would suppose?
JazakAllah khairan
Life is a test
Agree. Allah SWT has informed us of this in The Holy Quran in several places!
JAZAKALLAH KHEYR
Very interesting, thank you for sharing this.
One question I would love you to address, if possible of course: how does islamic finance handle inflation? Do sukkuk expected rates of return play a similar role to interest rates as a tool for attempting to keep inflation at a steady level? What do you think about this?
Also lot of people say in today’s time interest should not be haram, because with inflation we are loosing value by5-6% pa, even if banks/bonds/ are giving 5-6% return/interest the money technically is not increasing. Value stays the same.
Please advise
Interest rates and rate of inflation are not same thing. Solution is not to say yes to riba but to fight that causes inflation. In two weeks insha’Allah we have video coming out that will talk about debasement of money and advice scholars in the past gave to Sultans about this issue
@@AlmirColanpaper money is only medium of exchange, it does not have intrinsic value. Link paper money to gold to get intrinsic value. As far as you mentioned to go to cause of inflation, in that case all inflation is caused by printing of paper money.
Are the fees for accessing financial markets comparable to usury? Is RIBA al Jahiliyya in the Quran similar to interest?
Do you think all financial services should be free? Our Umma is poor today, perhaps because of radicalism.
Thank you for your lights
@@naumanayub1348but gold supply and price are both artificially controlled by the US/UK. Imho better linked to a basket of products like PPI - which actually should be applied to price gouging - or to a basket of commodities, or to infrastructure value, etc, or to GDP. However GDP also contains financial products and financialised gains, so should be excluded anyway - so let's call it real output.
@@astroflyinsightsAs the rate of printing of paper currency increases the price of gold adjusts accordingly.
May Allah reward you for shedding light on such an important matter. However, I still have a question in my mind: If someone lends someone money e.g. 1000 dollars today and he gets his money back in one year. A year from now that 1000 might not be worth 1000 due to inflation and losing its purchasing power. Therefore, by this "logic" can't the lender claim a little more in return to cover the loss ?
Jazakallahu khairan
7:10 its not about oppression but about prohibiting the exchange of same asset types in an exchange transaction
8:50 sell your product A and get the money B in exchange and use B to buy asset C
Thank you, can you please comment on currency exchange and people trading currencies of different countries?
Learn more about Riba and its different types here: ruclips.net/video/18FJgXjqW0w/видео.htmlsi=w52GAIMdn6L-XxIM
Exactly the Muslims need iterative, to be successful
So pound to rupee is riba ? Since they are in same category of money
Do you have a recommendation for an organization that provides Islamic mortgages in Canada?
JazaakumuLlahu khoiron
Thank you.
Mashallah❤
I strongly hold the view that since 15th. August 1971 when President Nixon delinked the Dollar from the " gold standard", real and sound money ceased to exist together with " Riba on the fictitous fiat paper currency at all". Modern fiat currency is " a mere ponzi scheme". Banking is never " an Islamic concept at all; so is Islamic banking. Islam had only " Islamic finances in the forms of Partnerships and Awqafs to finance both economic and social welfare. The character of proper, sound, islamic mpney and its integrity is corrupted and made " debt". Any discussions on " Riba must begin with the restoration of the proper character and integrity of " sound money that has instrinic value and stores value and wealth. Wabillahi Towfiq
change is a deeper concept, we as Muslims failed to provide an alternative or show how this system can collapse ... even those who do with whitepapers are focused only on theoretical doomsday... but they use the balanced economic approach.
so when you dont have the alternative, you must follow on known rules.
debase from currency to assets
Thank you Habib
As salamu Alaykum
I have a question about Staking a Crypto currency for the purpose of Governance of a Blockchain. Determining what changes are to be made to the blockchain is granted only for those who have locked up a portion of their assets on the Blockchain. The length of time and the amount of the asset that you lock up determine your level of effectiveness in making or preventing changes to the Blockchain. An increase of the same asset is given for participating in this governance. Is this increase a compensation for a service rendered or Riba and an illegal transaction. Thank you in advance for any clarification.
How does this date transaction effect bartering when both parties agree?
Can you provide the reference of the narrations you quoted in this video.. It would be really helpful to read and understand..👍
I think in the video you have references... and you can then just google and find it at sunnah.com or similar website
@@AlmirColan- how about you referring to some peer reviewed literature yourself. Prof. Farooq's for example on the subject of al-Jassas which undermines your whole thesis of Riba = interest?!
@almirColan assalamu alaikum brother... can you list the islamic finance companies that have a halal loan process. I am starting to think that there is none.
In Islamic financing, if you decide to sell the property at higher prices, you can not keep the entire profit. Islamic Bank keeps a portion of profit.
Thank you
Jazzakullahu khairan
Explain Sir how the banking system will run how the daily working in a bank and also how to take money for small business.
Is there any country which is not working on interest
How is forex trading or crypto trading viewed in relation to the date hadith?
Is fiat currencies accepted as as "money" Islamically?
Can one treat fiat as a product and buy it using its gold value and sell it based on the same gold standard to legitimise it, (if that make s sense) ?
Similarly, is it not best then to give loans at the value of gold at the time and expect the same gold value in return to avoid inflationary/other changes in fiat money. This also introduces the possible risk/benefit if gold prices change?
So what alternative do we have as Muslim living in the west? Is the product of Islamic finance is here in Australia is really Islamic? What makes them different from conventional Bank? Please clarify
What about adjustments of inflation for money for money transactions?
does the bank takes your home if you cant pay the agreed amount and do you take any money back ?
May Allah reward you.
Your explanation is fine but it resolves only part of problem. We need to understand why one is haram and other is not if we want to use it to solve similar problems. Unless this question is addressed conflict remains. My analysis is that the alternative that is blocked leads to massive injustice and exploitation while one allowed clarifies that shariah newer leave people to suffer injustice and zulm.
In Canada, putting your money in the checking account is very risky as there is tons of fraud. Buying gold is also not practical if we don't have family here since we can't travel with it nor leave it behind us unattended. Savings accounts are protected. My question for you. Is it halal to put money in the savings account to protect it and then give away any generated interest from it?
Some banks allow you to opt out of interest payments on a savings account.
Alhamdhulila jazakallah
AWW,Thank you
@almicolan brother most Islamic banks in Australia are acting as a broker between commercial banks and end user and they just label it Islamic loan which is exactly the same as conventional loan but more expensive
Not all of them I heard hejaz bank in australia doesn’t finance its loans from commercial bank it loans against superannuation
I was expecting an explanation on fractional reserves banking that even the Islamic banks are into. And how about the inflation rate hike over time? Is there any Islamic financial institution that can borrow me 10k USD to be paid 5 years later with 0% interest?
Thank you for the Video sir, so if a Bank buys for you the house and charges you more by financing, its islamic alowed? Because they own the house after buying it.... the call it interest. I thought everything where money is made out of money is forbidden?
If bank buys asset like home, and then they sell you that asset (even with higher price) than that is in general permissible. Of course they need to do it properly to satisfy conditions of sale.
I'm suprised nobody asked. I understand that the dates must have been changed to money (which is materially different) and then back to dates, then should we go for gold first when we try and do forex? Because when we change money for money, both are just paper backed with nothing basically, just different color.
If you would like to understand these rules in some more depth please see ruclips.net/video/18FJgXjqW0w/видео.html
hi thank you for the video, i have a question though is this applied for currency trading " forex "
insha'Allah next week we will have video about Forex
Assalam o alaekum brother,
does that mean money exchange also comes under riba?
As long as the exchange is done on the spot, you can trade different types of money for their equivalent value.
AOA Brother, Back to my previous question of Novated car lease, Cost of finance "INTEREST" is involve in all type of agreements which means the purchase price of the vehicle (as well as any finance costs such as fees and interest) are calculated into the lease repayments taken from pre-tax income. Clearly disguise as lease but need your insight in this matter. JazaqAllah
Yes, leases are priced with a discount rate. Nothing wrong with that. Money has time value .
Mr. Colan... without Riba...how would we fund a start up or why someone will deposit money in bank?
Easy:
Funding: do it with actual money!
Depositing in Bank: allows for easy internet transactions and safe storage of money.
My family and many families I know are from Afghanistan. They came over in the 80s. What they did was work all manner of jobs: taxi drivers, pizzarias, fried chicken restaurants, and so on, and they'd save their money for years. With the money they earned and saved they opened up their own businesses. Some people who had siblings or friends would pool their money together and then open a business. And now they're all wealthy. No riba required.
Most of the startups (around 70%) are funded via equity - not riba
so if all the methods get us to the same outcome, why one considered a Riba and other is not?
What’s the Hadith reference where the prophet (pbuh) suggested to convert to a currency? My understanding is that dates (or anything that has shelf life) used to be used as a currency in those days and hence the prophet (pbuh) mentioned it as riba.
Dates were indeed used in barter, but it would be a stretch to call them a currency in any way similar to functional money as we understand it today. Dates are perishable, which limits their effectiveness as a store of value, and they are not a very good unit of account for other goods universally due to their variability in quality, size and availability. This makes them less practical as a form of currency compared to more durable and universally accepted forms of money. Hadith: sunnah.com/bukhari:2312
Please explain, how one buy property in their own name by islamic method without keeping colleteral with bank?
Wrt video ‘The trouble with riba explained’ at 34:50- You said it is permissible to exchange land in Preston which is 500 square metres for 1000 square metres land in Roxbury Park. I thought it would NOT be permissible because land is not part of the commodity 6 mentioned in Hadith (gold, silver, wheat, barley, dates, salt) and it’s not something we buy on weight or volume, therefore does not apply to the 5th category of the rules or Riba/Trade. Please clarify.
Yes, because it is not from ribawi items you can do it - those conditions do not apply to it
so the solution is MCCA?
If there is no inflation, there will be no bank interest as money that is gold will hold its value.
Question: is there riba on the tenant (renter) knowing the owner landlord has a mortgage on the property?
No. Riba is direct link between landlord and bank. Tenant shares no responsibility in originating loan. Between tenant and landlord is legitimate contract of rent.
Salam brother, I don’t understand 😔 can you do a vidio of how a perfect islamic system would work in modern times? Or would we have to risk storing gold coins in our houses?
Step 1: don't have Riba anymore
Step 2: create a 1:1 storage of gold or oder Metals in the bank
Step 3: give out paper money or digital one but with a 1:1 ratio
And that's it.
Paper money gets lost over time, digital currency is risky if enemy comes in control of country electricity or internet. Its not simple as that.
See playlist about Islamic economy for a start
According to Bilal(r)'s narration, 2:35 Does Islamic finance prioritize quantity over quality?
It prioritises Justice and removal of possibility for exploitation
Sheikh, is buying share of a company whose debt to equity ratio is miniscule like 0.05 permissible.
Shekh i have a question, lot of people say in Dar al Harb riba is jaiz. They call the UK, India as Dar al harb
Please advise
Assalsmu alaikum . Just a doubt. What about exchange of cars or land property.
Walaykumu salam - these are not ribawi items so less restrictions will be imposed
@AlmirColan just to clarify.
if we exchange a new car with old car, then the new car owner will take the profit. Is this come under riba. Coz it is same as exchanging low quality dates with high quality dates, taking the differences.
Is mutual fund which are sharia complaint like Tata Ethical is halal?
What about $ for £ or currency exchange money does it fall under this category ?
No it does not fall into this category - see video Trouble with Riba for details.
I have a question. If riba is not about oppression and financial outcomes. And riba tranction can appear identical to halal one other than of tinciality. Like exchange dates versus selling dates then exchanging. How is one cursed and other is blessed. How is one harms society and other benefits society. Maybe there's something wrong with my thinking. I need to know how it's different
All riba is haram, whether it is a big part or just the dust of it. That is the point here. The wisdom behind this is that Islam forces us to use money not as a commodity for sale but as a medium of exchange and to profit only from real economic activities. The point here is about what building blocks we are making and what sort of economy we are building. That is the ultimate outcome of justice and injustice, oppression, or the opposite of it.
So mortgage, even though it’s exchanging money for property (owned by bank until all money + interest or business profit is paid back) then back to money (installments paid by user while using the property) is Riba?
In conventional bank they don’t sell you home but money
@@AlmirColan thank you. Do you know of any sharia compliant bank / loan available in UK / Europe?
@@AlmirColan but what about Islamic Bank brother do they really care about profit and loss if I borrow money from Islamic bank say $500k loan and let say if the house is destroyed in fire no insurance or for whatever reason the house now sells for $200k then the islamic bank will not ask me for the money? if yes then its all about money at the end of the day..... so what's the difference between Islamic vs conventional banks
so riba is like a barter system? where a guy exchange a whole chicken for just a lamb's legs or the whole lamb?
Those items mentioned are not ribawi goods so same rules would not apply
The Qur'an (2 : 279) clearly specifically relates oppression/Zulm as the Illah/causative reason for the prohibition.
Spot transactions where equity/parity is not maintained in the transaction are usurious precisely because they amount to economic exploitation = Zulm. This is regardless of the amount, of course.
You need to update your knowledge - please read the Wikipedia page on Riba, in particular the peer reviewed articles by Prof. M. 0. Far00q cited therein.
What is the point you are refuting? You should quote what I said and then refute it. To make it easier for you, I stated that some argue that riba only refers to usury, or an excessive amount of riba, as a form of exploitation and oppression. My criticism is directed at those who claim that riba only applies when there is exploitation or oppression. This does not mean we can oppress or exploit people, but rather, it means that exploitation is not the only reason riba is prohibited.
This is like saying riba only occurs when interest is 50% or 100%. I am arguing that even a 1% interest is riba because it violates the principle of equal exchange, which is set at 1 to 1. Any increase is considered riba. I hope you understand that I am not saying oppression is not part of riba, but that it is not the only aspect. Whether small or large, any amount of riba is still riba. If you have an issue with that, please bring up a specific point. As you can see from the Hadith I quoted, even in cases of exchange without oppression or exploitation, it was still referred to as riba. In any case if you are going to respond provide direct quote and we can see what the confusion is.
@@AlmirColan- I am claiming your arguments are simplistic and problematic from the perspective of the peer reviewed literature. You do the Muslims a disservice by not conducting a proper literature review and then claiming some kind of expertise.
Spot transactions if not like for like are obviously Riba because they amount to economic exploitation. Regulated bank interest, on the other hand, is not exploitative (in the main) and not considered usury as a result. You seem to ignore these fine differences and points which is not a good sign of a knowledgeable actor.
Once again I encourage you and your viewers to read the Wikipedia page on Riba and the peer reviewed articles therein. The traditionalist interest-Riba equivalency which you appear to be advocating is problematic.
jazakallah
What is the solution
Riba in old norse/germanic is called bank.
Brother almir, just wanted to point you towards some sayings that the the types of things that we cannot increase when trading are limited to the hadith, so only these 6 items we cannot trade with increase rest we can, hence a lot of people allow the increase in paper money because its not included in the 6 items mentioned in hadith... so we need some clarity and someone who can actually put and draw the full picture instead of bits and pieces taken from here and there please.. if its possible to have someone with you maybe to help it would be great for all of us who are looking and seeking the truth...jazakkallah khair on your hard work already brother..❤
@@maziz3003 this is just short clarification video - see detailed explanation in video called The Trouble with Riba (interest) explained
ruclips.net/video/18FJgXjqW0w/видео.html
Ustaad i had a question relating to mulims minorities in non-muslim majority countries, Are the muslims ok with the interest on the money accumulated in the bank if they are in a majority non-muslim country?
They should not benefit from it but give it to charity.
@@AlmirColan Jazakallah Khair ustaad, really appreciate the response.
Can we invest in share (equity) ,plz let me know?
Investing in securities is halal as long as you invest in the companies that are not involved in haram acts..
Gambling, banking etc these companies are involved in haram stuff and should not be invested in..
@@gulammohiddin5747 also, the ratio of [interest-bearing debt, securities and assets] vs [market capitalization] that a company has will determine if it is permissible to invest in it or not
Very true
The core question is what we must do as muslims if the whole core foundation is based on RIBA ?
Dates example shows how scholars love to complicate things. Take references from Quran and not hadees.
Asalaam wa alaykum, can u tell us which of the halal home loan options u recommend akhi
Walaykumu salam, it is best to speak with people you know and usually take advice from in your area about these things. They can, insha'Allah, guide you. I personally have not done a comparative study of the various options out there, and I avoid giving these kinds of recommendations and financial advice to the public.
Because they all have some type of fishy thing😂😂😂
Going by your technical definition, Islamic finance need not be necessarily better than traditional finance as both can lead to similar outcomes. In my view separating the process from the outcome is a grave mistake. Islamic finance must lead to better outcomes if it is to be adopted.
You are looking at a single transaction, which does not tell you anything. The point of difference is what you are building on a systemic level. See the video about "How Islamic Finance Works" for a bit more detail. ruclips.net/video/r7GKIFHTBTA/видео.html
i respond to a lot of people that way.
but i request you to revise the video.
or correct me.
the concept isn't to change to money , but a different form
example in age of barter trade.
I also have another question in this regards but few people have the knowledge depth.
What is the ruling / idea when in current days we "presume delivered", by paperwork, i dont PERSONALLY receive such quantity, just to have someone i trust to have seen (or video) and swapped it again out, it would be nice if you touch on that with Riba perspective
So buying a home in an Islamic banking system would entail the bank buying the home first eg at the seller’s asking price of 300k and the bank can then sell the home to the buyer at a higher price or at a profit eg 400k which the buyer can repay over a period of 10 years - is this legitimate?
Please, I would like to know if this is legit too..
Please answer
Salaam, inshallah you are well.
That is correct. I am no scholar but I have been looking into this matter for some time.
The key difference between a conventional mortgage v an Islamic mortgage is as follows:
A conventional mortgage loans you money to buy a house and then charges you interest on the loan they have given over the course of a certain period. The product is NOT the house but the money in this case - therefore, money is paid for money, money is being made from money which is riba.
With Islamic banks, it is like a shared ownership agreement (for some like Gatehouse Bank, Stride Up - if I have understood their model correctly). If you want a property for £100k, you put a down payment of £20k (you have 20% equity in the house) and the the Islamic Bank provides the remaining £80k, meaning the Islamic Bank has 80% equity. You then pay a monthly rental fee, which essentially buys back your share in the house, meaning at the end of the period e.g. 20,25,30 etc years, the house will be yours (some banks have a balloon payment at the end which you have to pay - I believe StrideUp does this).
Hope this helps and offers some guidance. As mentioned, I am no way any sort of expert on this matter - I am a layman who is looking to buy my house in an halal way. I am based in the U.K. where there are some Islamic Banks that offer sharia complaint loans but it is very early days here too tbh.
If I have made any mistakes, please do correct me (or anyone else who reads this comment) - I’m trying to learn and ensure I understand this properly.
JazakAllah Khair. May Allah bless you in your journey.
The bank has to own the house and then sell it to you .. but no penalties fees no late fees .. because if the bank does charge that then it is Riba .. no banks will buy the house for you .. they will lend you money with interest
Wallah some of these “Islamic” banks are even worse than the FHA loan. No grants and higher interest…sorry “profit rate.”
Interest earned from savings must b given in charity
Why Islamic banking cost more to borrow?
Salaam Almir, thank you for sharing your knowledge for us all to benefit. The money today is debt, and it is "printed" paper money. The central banks print additional paper money such as under QE. By doing so they dilute the money that we hold and this plays a part of why prices are inflated. If our paper money is being diluted and so becoming worth less due to the central bank, ie issuer of paper money, why can we not accept "interest" on our paper money in the bank ?
But the same could happen with gold, sliver, or any other tool used to present wealth. It is not about the paper. Now, it is true that the government is mostly corrupt and simply hides its failure by printing more papers. But that is a different subject. Imagine the government finds a way to instantly make gold.
@@ssm2UTTell me how exactly gold can be mass printed or mass extracted? No matter how much gold your nation has, it cannot be printed and masqueraded into the trillions and trillions that fiat has. Most of this money doesn’t even exist as paper notes. It’s just IOUs that the citizens pay back in taxes. In Islam, we only pay Zakat which the govt is not able to loan out to other countries as debt on interest. It’s not the same at all, you just can’t see the difference
Interest is not equal to inflation at your bank. You should put money to work and make more than inflation anyway. Between inflation and zakat if you money just sits then you have a problem. Solution is not riba
@@AlmirColan You are talking like you’ve learned economics in the west. Interest causes inflation. The response to inflation is not to “not let your money sit”. No matter how much your money is moving or sitting, as long as you are a Muslim who doesn’t engage in interest based economic system, you will be drowned by the sea of thieves who manipulate interest to make wealth. And their innate greed to destroy competition and maximize profit causes inflation anyway. And that inflation is only caused by those who operate within a fiat system of mass printing in the first place. There would be no inflation if our government wasn’t 30+ trillion in debt and handing us the IOU in taxes. This is why the cost of living is so high because people have to compete with the dollar being stretched like rubber alongside people who engage in interest based businesses and appeasing supply and demand. You should know this if you were an ethical human being let alone a Muslim.
@@AlmirColan The Qur'an (2 : 279) clearly specifically relates oppression/Zulm as the Illah/causative reason for the prohibition.
Spot transactions where equity/parity is not maintained in the transaction are usurious precisely because they amount to economic exploitation = Zulm. This is regardless of the amount, of course.
You need to update your knowledge - please read the Wikipedia page on Riba, in particular the peer reviewed articles by Prof. M. 0. Far00q cited therein.
Why is the loaned amount/house priced according to LIBOR, why can’t Islamic banks have their own system similar to libor?
Why are loans/homes more expensive by Islamic banks than regular banks?
Please explain this
Labor ceased to exist, but I understand what you are saying. Price is an important factor, but just because something is priced a certain way or is more expensive, it doesn’t tell us much. For example, you would expect organic food to cost more, or if a financial institution is smaller, their costs might be higher, etc. These are business decisions and reasons. What we cannot judge is, for example, halal meat being haram simply because its price is not to our liking.
@@AlmirColan your absolutely right, what I feel is that banks and halal food companies are ripping customers off knowing full well we the customers haven't much options
@@AlmirColanIslamic banks are exploiting customers in the name of islam.
It isn't just modern banking, the core of all government fiat currencies is Riba. Fiat currencies are lent into existence with roba. Muslims need to use money that doesn't have Riba baked into the base layer. The only 2 viable options are gold and Bitcoin.
Gold is very speculative (gharar), and is wealth that does not circulate. It sits in a vault or under your bed. Bitcoin has no intrinsic value, its just a computer record. It facilitates a lot of criminality (money laundering) and scams.
@@roberthannah7983 so you're saying it is better for Muslims to use Riba currencies then?
@@SAL-fs1mr I am one of those people Almir is talking about that dont accept the assertion interest=riba. Riba was about exploitation by moneylenders of poor debtors like loan sharking. So I dont accept the concept of "riba currencies". Almir discusses the 1-for - 1 rule from hadiths which were more likely about making change with a moneylender, not about investment. Otherwise it does not make sense - why would someone exchange gold for the same gold with a moneylender?
Us Salam alikum brother i sincerely appreciate your video .
I just have few questions if u can help me with that 1 how do we muslim purchase a home without going to bank ? 2 if I open a buisness where I lend people money and I have 10 employees and bills and rent to pay what can I charge to the customers for cost of doing buisness . Everybody I listened to only tell don't buy a house from bank don't buy a car from bank but I don't find any solutions if we the muslim wants to buy a house .
Walaykumu salam, I will talk about that later on, insha'Allah, in more detail. See a brief explanation in the "How Islamic Finance Works" video.
Let an islamic bank buy the house then sell it to you with profit and you pay it over the years, if this is not available in your country dont buy a house with regular banks because riba is a major sin and Allah promised war on people who practice it
my aunt from europe send me money as Euro, while i only able to use it if i exchange it as rupiah.if she sends me goods as a medium. the tax and cargo costs would exceed the amount of money itself. what should i do to avoid riba?
Sending money is not a problem.
@@AlmirColan Why won't it be a problem? Exchange rates are highly influenced by interest rates set forth by respective Central Banks of the participating nations.
@@aaymanbd Because it's not riba.
@@sub7se7en This whole video is about the process making something riba, not the outcome nor the nature.
@@aaymanbd in this case the fee is a service fee, not a devaluation of your property. They won't charge you a basket of dates in exchange for giving you a service, they will take the exchange fee from a usable currency (euros, rupee, etc.)
Unless we have an alternative system totally ribs free which we can choose no point in these discussions
Aslam alaikum Almir, I personally have a very deep question.
I have read some fatwa on this but I'm not personally satisfied with the answers.
If someone sold item X for 10,000, and then said since you cant pay in full, I will sell it to you for 12,000 over 10 years, is it riba?
If it isnt, then what's the difference of buying it at 10,000 with a 10 year term @ 1.8% which totals up to 12000. There is no difference and is there any hadith on this. Thank you.
Assalamualaikum brother Almir. It would be really helpful if you could answer this.
Jazakallah Khair.
Walaykumu salam. If someone sold an item for 10k and then later asked for more than that, it would be riba because the second time, it's increasing money from debt. However, if the item was originally priced at 12k (sale with markup) and you were given 10 years to pay it off, then that is a sale. This is the confusion that verse 2:275 addresses.
Basically, making profit from the sale of money for money is an illegitimate profit that we call riba. On the other hand, profit from the sale of an asset is legitimate profit.
@@AlmirColan thank you for the answer. I pray that Allah protects us all from Riba even though our times are tough and may Allah reward you for what you are doing for the ummah.
Salam brother some Islamic Finance Institutions here in India offering loans to the people, they say that they don't charge interest for the loan but they charge processing fees which is equivalent to commercial bank interest, can we label the processing fees as interest?
@@ShahabazIbnShahab processing fees or service fees are not the same as interest rates for the very reason that processing fees are derived from the cost of labor + margins to justify the disbursement or lending of loans. Interest is derived from the "cost of time" and the risk incurred for lending money.
So exchange of pound to rupees is riba? since it’s same category of money
Exchanging a pound of poor quality rice for half a pound of higher quality rice is riba. It’s like for like. This means that Rupees and USD must be equal in value which promotes equality in money. You can exchange gold for silver but not gold for gold unless it’s the same. For example, you have 300 Abbasid gold coins, it must be traded for the equivalent of 300 Roman gold coins. This is why people have been robbed of their purchasing power and ability to make a living. Your Islamic scholars are LYING to you. They are the scholars that Allahs messenger feared for his umma even more than Dajjal.
Money for money implies same for same money… different money for different money is different matter - see lecture Trouble with riba for details