IJS: Cry me a RIBAA

[Nazihah]

:salam2:,

InshaAllah, I hope everyone is doing well. Here's a video I would like everyone to watch, inshaAllah. A short video with great simple explanation on interest (ribaa).

IJS: Cry me a RIBAA (a simple chat on interest)

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"O ye who believe! fear Allah and give up what remains of your demand for usury, if ye are indeed believers. (278) If ye do it not, take notice of war from Allah and His Messenger: but if ye repent ye shall have your capital sums; deal not unjustly and ye shall not be dealt with unjustly. (279) If the debtor is in a difficulty grant him time till it is easy for him to repay. But if ye remit if by way of charity, that is best for you if ye only knew. (280)" Al Baqarah

"Those who devour usury will not stand except as stands one whom the Evil One by his touch hath driven to madness. That is because they say: "Trade is like usury, but Allah hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (to judge); but those who repeat (the offence) are companions of the Fire: they will abide therein (for ever).(275) Allah will deprive usury of all blessing, but will give increase for deeds of charity: for He loveth not creatures ungrateful and wicked.(276)" Al Baqarah

"O ye who believe! Devour not usury, doubled and multiplied; but fear Allah; that ye may (really) prosper." Al-E-Imran:130

"O ye who believe! Give of the good things which ye have (honourably) earned, and of the fruits of the earth which We have produced for you, and do not even aim at getting anything which is bad in order, that out of it ye may give away something, when ye yourselves would not receive it except with closed eyes. And know that Allah is Free of all wants and Worthy of all praise." Al Baqarah:267

"Be quick in the race for forgiveness from your Lord and for a Garden whose width is that (of the whole) of the heavens and of the earth, prepared for the righteous,― (133) Those who spend (freely) whether in prosperity or in adversity; who restrain anger and pardon (all) men; for Allah loves those who do good,― (134) And those who having done something to be ashamed of, or wronged their own souls earnestly bring Allah to mind; and ask for forgiveness for their sins,―and who can forgive sins except Allah?,―And are never obstinate in persisting knowingly in (the wrong) they have done. (135) For such the reward is forgiveness from their Lord and gardens with rivers flowing underneath an eternal dwelling; how excellent a recompense for those who work (and strive)! (136)" Al-E-Imran


May Allah Almighty guide us all and make us among the righteous who fear Him and abide by what is right and avoid what is wrong. Ameen

 

[Muslimah-S]

:salam2: dear sister Nazihah,
JazzakAllahu khairan for the great reminder.
However I do have some questions.
Before I start the questions one of my teacher was talking how UK government basically live on debts, as they are already in debts and further have to borrow more in order to pay the interest so the country debts continue to increase. So video says it makes the poorer more poor and richer more rich, which I agree. My teacher even mentioned that countires like Saudi Arabia have no debts, SubhanAllah! and they do trade without Ribaa. :ma:

But my question is how do Saudi Arabia operate/trade without dealing with Ribaa?, how do companies/banks make profit when they loan out money.
My teacher did hint that question, so I wanted to know the answer.If you know the answer or anyone else id be grateful.
JazzakAllahu khairan.

 

[Nazihah]

my dear Sis,

Barakallahu feeki.
MashaAllah good to see you here again.

You raised a very good question and which I would like to know as well.

My cousin is doing Economics and part of it is on Islamic Banking. I will ask her about this and inshaAllah will get back to you.

 

[Muslimah-S]

:salam2: dear sis,
Im not a regular TTier anymore, but its lovely to hear from you sis.
Ok il wait for the answer, inshAllah.
In the mean time if anyone knows the answer to the question, please do post.

 

[nasiruyola]

:salam2: dear sister Nazihah,
JazzakAllahu khairan for the great reminder.
However I do have some questions.
Before I start the questions one of my teacher was talking how UK government basically live on debts, as they are already in debts and further have to borrow more in order to pay the interest so the country debts continue to increase. So video says it makes the poorer more poor and richer more rich, which I agree. My teacher even mentioned that countires like Saudi Arabia have no debts, SubhanAllah! and they do trade without Ribaa. :ma:

But my question is how do Saudi Arabia operate/trade without dealing with Ribaa?, how do companies/banks make profit when they loan out money.
My teacher did hint that question, so I wanted to know the answer.If you know the answer or anyone else id be grateful.
JazzakAllahu khairan.

SALAMU ALAIKUM WARAHAMATULLAH
But my question is how do Saudi Arabia operate/trade without dealing with Ribaa?, how do companies/banks make profit when they loan out money.
My teacher did hint that question, so I wanted to know the answer.If you know the answer or anyone else id be grateful.

SALAMU ALAIKUM WA RAHAMATULLAH
Islamic financial system is not based on usury. there are many ways of making profits for what may now be termed islamic bankig. It is actually an investment. Insha ALLAH will in the future post very essential information about this system. However for the mean time, suppose I want borrow money from a bank to establish a business or make an investment, there is what is termed mudharaba, musharaka.. i did not intend to go into this detail now All i need to do is to go to the bank and explained and demonstrate to them what i intend to do and all the detail of the business..After being satisfied with my intension and plans, we both will sit down and detailed how to share the profit. it is like you having the talent to do a business however lacking the resources to make it a reality. in this case both profit and loss have to be shared proportionately between me and the bank. it is a good and wide topic.For now you may watch the islamic banking programme on peace tv on the sky satelite or the link below.
www.peacetv.tv
I hop to explain these details in due course insha ALLAH.
MA'ASSALAM

 

[Muslimah-S]

SALAMU ALAIKUM WARAHAMATULLAH

SALAMU ALAIKUM WA RAHAMATULLAH
Islamic financial system is not based on usury. there are many ways of making profits for what may now be termed islamic bankig. It is actually an investment. Insha ALLAH will in the future post very essential information about this system. However for the mean time, suppose I want borrow money from a bank to establish a business or make an investment, there is what is termed mudharaba, musharaka.. i did not intend to go into this detail now All i need to do is to go to the bank and explained and demonstrate to them what i intend to do and all the detail of the business..After being satisfied with my intension and plans, we both will sit down and detailed how to share the profit. it is like you having the talent to do a business however lacking the resources to make it a reality. in this case both profit and loss have to be shared proportionately between me and the bank. it is a good and wide topic.For now you may watch the islamic banking programme on peace tv on the sky satelite or the link below.
www.peacetv.tv
I hop to explain these details in due course insha ALLAH.
MA'ASSALAM

Walikumasalam warahmatullah,
JazzakAllahu khairan for attempting to answer my question and the link.
From what I understood, the way banks benefit or make profit is what they get in return after investing on the business plan. This happens after negotiations and deals are made between the lender and the borrower on the outcome of the business plan and if its worth the investment.

I hope what I said was what you intended to say, and inshAllah I look forward to reading more about it.

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