What is an Interest Rate ?
- Thread starter Mosque51
- Start date
Well if you buy a car and the price of the car is 2000 dollars paid back with a 10% interest rate, then yes you are paying on interest. The interest rate is the amount of interest is added to each payment.
Its also beneficial to note here that most people misuse the word "usury" in this context. In English, "usury" means "the lending or practice of lending money at an exorbitant interest" or "an exorbitant amount or rate of interest, esp. in excess of the legal rate." So when people say in Islam usury is forbidden, most English speakers will take that to mean interest itself is ok as long as we don't pay above and beyond the established rate. Unfortunately this is misleading and not true. In Islam paying (or earning) on interest itself is forbidden.
Assalaam walaikum,
Interest is the primary reason the US is in the dire straits it is in. People are losing homes everyday. The Royal Bank of Scotland is a major player. Banks are now adding late charges to anything they feel like. The have charged my mother $1800.00 late fees on a bill that is $400.00. Go figure. She was a month late..why she is 80 years old and forgot. Banks rape the elderly. They charge the poor and constantly penalize those who can least afford anything. Go look up your history and it makes sense why the world has always hated those who have made a qudzillion on the blood of the poor throughout the ages.
I love the word coffer because it really is coffin. How much do you need to hoard. Thirteen families own 90% of the wealth of this planet. I am blessed indeed not to be related to them.
Whatever happened to the notion of fair measure. Unless I am mistaken Allah has given us ample examples of what to do. Whatever happened to barter.
I am fortunate. Somehow my credit good supermesssed up. I have to pay cash for everything. So I save up my pennies and Allah sends me His Blessings and I make do.
Now when my sons totaled my car..I had to buy a used model but they sold me a $12,000 for $20,000. Yes, I have to make payments and interest.
I am going to purchase an old cluncker for my sons. I will save the money and pay cash.
We need to go back to the concept of Community Banks..or credit unions. They are fair.
The bottom line is on the Day of Judgement it will be set right. Let us be mindful of how we purchase. May Allah forgive me if I have had to use interest to put food on the table for my sons.
Interest is the primary reason the US is in the dire straits it is in. People are losing homes everyday. The Royal Bank of Scotland is a major player. Banks are now adding late charges to anything they feel like. The have charged my mother $1800.00 late fees on a bill that is $400.00. Go figure. She was a month late..why she is 80 years old and forgot. Banks rape the elderly. They charge the poor and constantly penalize those who can least afford anything. Go look up your history and it makes sense why the world has always hated those who have made a qudzillion on the blood of the poor throughout the ages.
I love the word coffer because it really is coffin. How much do you need to hoard. Thirteen families own 90% of the wealth of this planet. I am blessed indeed not to be related to them.
Whatever happened to the notion of fair measure. Unless I am mistaken Allah has given us ample examples of what to do. Whatever happened to barter.
I am fortunate. Somehow my credit good supermesssed up. I have to pay cash for everything. So I save up my pennies and Allah sends me His Blessings and I make do.
Now when my sons totaled my car..I had to buy a used model but they sold me a $12,000 for $20,000. Yes, I have to make payments and interest.
I am going to purchase an old cluncker for my sons. I will save the money and pay cash.
We need to go back to the concept of Community Banks..or credit unions. They are fair.
The bottom line is on the Day of Judgement it will be set right. Let us be mindful of how we purchase. May Allah forgive me if I have had to use interest to put food on the table for my sons.
Islam!!yay
Junior Member
So how much wouldve I paid back to the dealer with 10% interest rate ? (considering If I paid $300/month and If the car costs $2000)
I to dont really know how interest rate works...
I to dont really know how interest rate works...