Yesss - One God, One Message. Riba, Interest, Usury is spoken against in the Bible also. Maybe you know that already...welcome!!! Usury is an oppressive financial institution which is really no good for any society.😢
Masha’ALLAH! We have so many talented brothers and sisters from all types of background. I just don’t understand why we can’t come together as an ummah and collaborate to establish all Sharia compliant social and economic systems. Just imagine how proud Allah (swt) would be if we simply followed his guidelines and the teachings of our beloved prophet (saw).
I'm not a religious scholar but I know for sure, the Quran is very clear on the subject. Americans are on record to have said that they exercise a check on the syllabus of almost all the Muslim world's religious schools especially Saudi Arabia etc. what if one is a graduate of American university. Only Allah knows the best
Hundreds of years Muslim scholars have been keep saying riba is haram. Yes, certainly it is Haram, No doubt. However why they are not trying to work for developing halal financial products. Yes, there is something developed, but always there is limited access. Muslims had a glorious past in science and other areas we all know. Investing knowledge and effort to bring an alternative solution is an act of ibadah. All Muslims scholars have to come forward and bring a solution. Keep saying riba is haram and keep going with ignorance and give fatwa is justified? Seems like we all love to give Fatwa than Invention and bring solutions. As working on invention and bring solutions requires lot of hard work and dedication!
@@native5647 I am not saying this. We all talk about the problem but very few talk about solving problems. You are supporting who talks about the problems, but not solving problems. Nothing wrong with talks about problems, but solving problems is an act of Ibadah. Just I would like to remind you that Allah blessed Muslim nations abundent of wealth. You, me and all we know how we use our wealth. Very easily Muslim nations could have been developed a parallel financial system. We all have to come forward and at least trying to address this problem.
@@lilyarman Yes we have wealth but not a control over it all the big financial institutions are controlled by West they have build the system of which nobody can stay out of it and if I am not wrong Muslim countries have tried and there are bunch of Islamic banks now all over the world but even them have to inter mingle with the rest of the institutions of the world same like we have our own Islamic calendar but we don't follow them you can't say we don't have a solutions we have a solutions or atleast some kind of solutions but the one you are talking about parallel system it is not possible in today's economic climate
I absolutely agree with the sheikh that it is possible to start genuine Islamic financial institutions. However, as he said that we as Muslim community lack vision and leadership to implement it.
I am not sure whether people will be satisfied with these simplistic answers. Many of us love talking about ideals but want to avoid the realities of today's modern economies and how they function.
Very helpful video. The interviewer did a great job of steering conversation to real world issues and away from ideals. We know what ideal world looks like but it's just impossible this day and age.
Sorry to say... "like halal" is not a term that we should be floating around.This session was not answering real-time issues and solutions. Better, just go ahead say what we have presently is not halal. Yes, we need to establish one for ones seeking real halal options of financing. Nevertheless, thank you for this session.
❤ unless the Islamic faith and eeman is established in the hearts of people and simultaneously a true Islamic state is established under the command of "saliheen " we can not abolish the " riba" but we have to struggle in this direction. Inshallah we will be successful.
Wait a minute guys stop criticizing!this is not an idle topic it is a burning topic !as small waves keep coming up and finally give way to the big and strong ones InshaAllah this will happen maybe not in our time 36:36 after wallahuaalum 36:36 36:36 😊😊😅😅😮😢 36:36
I have realized that all my family who indulge in riba have other issues. Such they do not attribute to their loan but the core is the same. Food for thought.
Asalam Aleikum! The Sheikh is correct that " Fiat currency has no instrinsic value". He is also correct that it can buy you " Gold and Silver, the real, sound and even Islamic money". Thus it is a proper substitute and therefore " Riba applies on it, when it is lent with interest". This is the view of most Scholars of Islam. However, when you unpack, to use his words, Banks nowadays don't lend you their currency (share capital and reserves), neither Depositers currency held in Trust. All they lend you, after Gold and Silver were " de - monteized by the UN) is " mere air on which they charge you interest on air after you sign the Loan and or Mortgage contract". My honest question is has the Bank lent any sound wealth of it or its Depositors to you! If no, does " Riba" apply on such Loan transactions or not?"
My Q to esteemed Dr! The current Islamic loan companies give a 1098-MORT every year saying you can get a tax break thru SCH A. Is it accepted islamically. If so what is the difference with traditional mortgage.
The current financial system is more complex than his explanation for example when he said that saving account is haram because it is guarantee but he didn't take in consideration that it is grantee because an insurance not investment, is insurance is not halal.
Fact.... Islamic banking needs to start within Muslim states.. at state level inter state level amongst Muslim countries. Islamic states need to borrow from each other rather than IMF or non Muslim nations. this could than trickle down to Muslim society.
islamic finance not to be limited by personal banking saving but rather need to address international monetary system pushing the world towards debt crisis for interest money that is today's major crisis . Islamic world should make a global finance banking to provide loan based on Islamic finance will help to solve many problems
With all respect shiek, As you mentioned, if one part of the transaction is haram, it can taint the whole process. Therefore, even with cashback, one must be cautious to avoid any interest or other haram elements to keep the entire transaction halal.
They should come up with business partnership platforms for people with money and business ideas to partner up and there should be fair losses and gains on all partners.
Thanking both of you for your discussion, I’m still in doubt of accepting Islamic finance as a solution for riba. Where does the ‘Niya’ resale in order to get profit lies ? In fact Islamic finance imposes more burden on the bearer?
Discussion must be held to provide solutions in a simple and understandable language for known problems facing Muslims living abroad e.g. Mortgage is the probably the biggest issue. Islamic bank or other institutions that provide solution must educate the people what is the difference between islamic bank money vs money gotten from non Islamic bank. How does it work, what are pro and cons. Which one benefits the borrowers while not breaking islamic ruling by ALLAH SWT rather then this sheikh or that sheikh
Assalaamu Alaykum thank you for your immense knowledge. Can you give us in the west some solutions? You pro don’t live in the US and due to your knowledge you knew what to do. What can we do?
My sincere advice to listeners is to do your own research before you trust so call a scholar because on the day of judgement, Allah will not accept this argument that Top Muslims scholar advised that loan taken from so called "Islamic financing/banks are Halal" As per Holy Quran, " No soul will carry the burden of another on the day of judgement."
Inflation is due to interest and fiat currency is based on fractional banking which is again inflationary!! So each fuels the other and can't be adopted
In financial inclusion: As far as movable people like Pastoralists is concerned, can we use their livestock like cattle camels and goat as collateral for credit?
ikhwan muslimeen have long justified riba as darurah, going back to freemason m abduh who instituted postal riba in egypt. recall it was Lord Cromer (aka Evelyn Baring, of the UK Barings Bank) who made abduh mufti of Al Azhar. anyway, most US muslims are ignorant of the problems of islamic finance & the deep penetration of the MB in the US (MSA, ISNA, et al). whisky is still whisky even if you put an "Islamic whisky" label on it. in any case, so-called Islamic finance is supported by the jp morgan's, Wells Fargo's of the world. this should say A LOT.
This is really amazing. However, I have a question about lending in two different currencies. For example, the bill for which I am helping my friend to settle is in dollars but since I did not have any physical dollars at that point, I lend him an equivalent amount of our local currency at the rate in time. Now, what is the obligation here? the dollars or the equivalent amount of local currency? considering the rapid inflation of our local currency against the dollar, he is likely to pay me more now than it was previously. Is that riba? I will appreciate your answer.
Riba is haram. The alternative, no riba, will be great and will be very popular. But the reality shows, riba system continues and is hundred of times larger than no riba system
Assalam Alaikum If anyone know where to listen to his complete lecture which he mentioned during his talk that a detailed lecture he will be going in 3 days. Please share the link if anyone have. JazakAllah khair
Just curious: Why all of sudden starting last quarter of the twentieth century Muslims scholars splitting their hair on the issue of buying a house, why owning a house is now mandatory for Muslims, who since the last thirteen centuries have been born, getting married and in some instances used to die in the same house and were more happy. Why owning a house is a primary reason and a source of happiness in the lives of Muslims today, because we know that Islam doesn’t provide any clear solution to how to own a house in a halal manner until Muslims have their own Islamic bank who gives away interest free loans or one is extremely wealthy, which itself in an ideal Islamic society, is next to impossible it not impossible if he pays his zakat due every year.
I have a question what is the different between Islamic Bank loan of purchasing a car as in example the cost by the dealer 20,000 dollar and the bank will offer you a loan by purchasing the same car for you and charge you 23000 $ and make a profit of 3000 dollar without any risk and the client will bear all charges that the bank gained. This not a Riba? The same thing for Islamic mortgage!!
Aselam aleykum. What about countries where sheria complaint mortgage alternatives are nonexistent (many countries in Europe) or in some other countries they are more expensive than the conventional banks? Does not Islam take into consideration the fact that the Muslim community is lagging financially from the rest of the society, and this is going to affect the coming generation in addition to the psychological consequence of being dragged around from one dirty rental house to another in the whole of their development? What about the fact that we as a society at the bottom of the financial hierarchy the whole time will have less (to none) power to affect the society with our religion? I have heard that it is allowed to buy a car that costs a certain amount of money to a little more of that amount with a predefined monthly payment for the whole of the payment period. If this is allowed for a car, why cannot it be allowed for mortgage as well? In certain European countries (it may be the same in the states as well, I don’t know) I can buy a house with a predefined monthly payment for example 10 years.
💯 You nailed it bro! “One dirty rental to the next”…..no consistency for you kids…..where is the considerations for the reality we living in? If you pay rent for 5 years your giving these kufaar $150,000 for generations and staying broke….this is how we suppose establish our children and dean?
A principle was mentioned that any lending transaction that benefits the borrower like in case of cash back is Halal. But earlier a contradicting example was given that in case of a business loan, if the interest rate is 3% and the borrower makes profit of 100%, then it is unfair with the lender because he is making only 3% whereas th borrower is making 100%. Why here the benefit of the borrower became Haram?
My question is " what " shall a self-employed person in a society that does not have a welfare system does when he / she is incapicitated esp when they dont have a regular income , so they invest in some scheme where they keep on getting some return on their fixed deposit
The learned scholar professor AlQudah mentioned in the video that a benefit from the transaction with interest makes it Halal. A mortage has an option of refinance with a lower rate of interest that is paying back the loan amount with upto date interest to the lender before the agreed upon time mentioned in the loan agreement.
Interesting that the speaker mentioned that there is a possibility to overcome the Riba issue with creation a federal credit union supported by Muslims in the USA. However how such bank can get away with the fractional reserve banking that inherent to any bank and is by essence not halal.
When I heard the CV of the guest I was expecting some deeper insight. Shaykh asked some good questions but the responses were quite shallow unfortunately. Other than the deflation/inflation question, how will a loss sharing system practically work? The money that a bank lends ultimately belong to its customers. If banks starts sharing losses of the lended money, how will they pay back their customers. And how will that impact the confidence of the customers? Why would they put their money in such a bank which can't guarantee that it will not loose your savings? Not to say that in current practice, bank doesn't invest customers money in risky trades, etc.
Brother, you should read the Quran completely in your mother tongue, then you will understood, prohibited lending on Interest system, we can lend the money on Profit basis system. Dont lend on loosing businesses, if lend but not starting the profit or started losses then close the business take back the balance principal amount, may be a small amount Wil loose. But 99% businesses were successful. 1% failures are not big issue.
What's the difference if I had a 100k that I could have invested elsewhere but I've given to you instead... shouldn't I charge you the cost of my potential losses ? Shouldn't you pay my cost ? I could have called it a fee instead of interest. Why shouldn't someone pay me for using my money for they benefit whilst I'm not gaining anything ? Cmon ! 😢
Because it is Riba(interest)! However you call it! You don't make money out of money, you have to make money through trade of goods,then it is halal. (I might be wrong. May Allah forgive me)
I totally agree with you. Stop. Your legal language. Every thing in this planet. Is. Intrest. If. They is. No. Intrest. The banking industry. Snd Laws say. It’s not legal
The shaykh makes many good points however I am critical of his definition of ownership. He says “Bank of America is not an owner they are a lienholder”. The difference between the two is simply that the owner has different right over the asset than the lienholder. The lienholder does not have the right to make changes to the house, live in the house, or sell the house. The lienholder does have ownership over the security during the duration of the agreement until the obligation is fulfilled. Therefore this argument should be further scrutinzed
These scholars are not actually solving the current financial problems of the entire ummah. First we do not even have our khilaafa. Now, the entire financial system is controlled by the kaafir. Where is the Islamic system? Its only on paper. Its not available to all muslims. So, just talking" islamic finance "and living away from " riba" doesn't mean we solve the financial problem, which is our daily problem. So, if the scholars do not solve this issues, then they will face Allah, not the layman muslim.
He also says that the bank doesn't take any risk when lending money. But we all know that there is real default risk on a mortgage. This is why we have different types of bonds (AAA, AA, BBB, C, government vs corporate, etc.) level of interest depending on the type and level of risk of loan. Unfortunately this shows a lack of understanding of very basic economics by the speaker and therefore he shouldn't be talking about this subject, in my opinion.
@@abdulrashid8971 If you live in the US, then how can you establish the caliphate? Best you can do is operate a community where Islamic law is applied locally.
@@-Nab- exactly. They are so self contradicting. I'm yet to find solid argument that properly takes modern finance into account. The moderators however, did a great job. Really struggling with Ribba's link to modern economics. If you have any knowledge or video u have come across help a brother out.
@@-Nab- you misunderstood (or maybe he should have been more clear). The bank assumes no risk on the asset. If a tornado comes and blows your house down you still owe the balance on the mortgage, so the bank still comes out ahead
Unfortunately this discussion don’t bring crystal clear ideas how someone can buy a house without getting involve into ribah? Need more solid and alternative ideas to establish a system against ribah.
I am aware of the negative side effects of Riba on society and individual and the reason that why Allah has forbidden it. However, I am wondering that if I lend someone 10,000 and the promise of paying back is in 2 years (just an example) so in 2 years my 10,000 would lose its purchasing power due to inflation. Isn't it fair that instead of 10,000 we make a deal that he pays me 12,000 to cover the loss ? One might argue that well I should do it as qarze hassan and expect the reward from Allah, which I totally agree but what about the monetary aspect ?
When the lender lends money and is not involved in the decicion making about how that money is spent and all the decisions are made independently by the borrower, then why should the lender share the risk? What if the borrower incurs loss due to bad or wrong decion making? Why should the lender suffer for that? Is it not unfair to the lender? Secondly, if both parties (lender and borrower) agree on the terms and conditions of the loan, then where is the injustice? It is unfair only if one party forces any terms and conditions on the other party. Any deal in which both parties are satisfied and happy can't be called unfair.
thank you for this video, but based on many limited study and experience in banking (both islamic and conventional) I have a question which I have tried asking numerous scholars in Pakistan who support IB, but none have found it worthy of a response..maybe someone here would answer: Islamic Financial Products and the risk sharing model is good.....but are the same products halaal if traded in fiat currency? which is not backed by any asset...and is also multiplied due to fractional reserve banking.
around 21:30 a similar question is raised, however, just because fiat can buy gold/silver or anything on spot doesnt mean it can be used for lending/borrowing...for example...if I am in a risk sharing agreement with a IB, and borrow $5000, buy 50 units of goods and sell 15 days later for $6000, making a $1000 "profit"....how do I calculate what part of the profit is because inflation/deflation?
What about the difference in the value of the USD. If the USD goes up in value do we have to get rid of the money that “we made” since you are counting Savings as riba?
Till today, 2022, the muslims and our scholars are still unsure if the riba mentioned in the Quran is actually equal to the bank interest all of us are directly or indirectly involved in our daily lives. This is a tragedy of the ummah. We have our own so called " Islamic finance". But is it available to all muslims.? Can anyone tell me where can I get islamic finance for my business and house loans.? Some of us even say the paper money is haraam. Yet we used it everyday. How could Allah allow the ummah of the last Messenger, peace be upon him, stray and be destroyed to such an extend where we do not know what is halaal and haraam. The fact is our scholars are not good enuv to guide us. Esp after the collapse of the Muslim Caliphate about 100 years ago.
I know one christian bank which offers an alternative. You pay 10% as equity and bank puts 90%. Monthly you pay rent not mortgage payment. So your equity increases till the equity bemes 100 by the end of loan period. Yearly you get a statement of equity changes but no 1098-MORT So you can take only standard or itemized deductions without interest on your return. What is Dr’s views on this
@@jodolski A bank is a financial institution and like any lender takes an interest on the principal it gives. Interest is usury which is not permitted in Islam. Read Surah Baqarah v. 275. Also there are hadith to highlight that lowest sin in a interest transaction is doing incest with one’s own mother. Christianity and Judaism allso forbade interest or usurious transactions. Did you hear about the Jewish organization in NY which gives interest-free loans only to other Jews
@@jodolski one way a bank can make money is by puting its money in investments that grow. If they make a bad decision then the shareholders of the bank should bear the brunt. But banks today are likecreepers that cling to the trees and drink its sap or insects that were used in the time of Jesus Christ to suck out bad blood from a diseased person. Even in Shakespeare’s ‘Merchant of Venice’ there was no mention of interest or usurious transactions.
Assalamu alaykum writing from zamboanga city, Philippines. Is it halal to buy from a store whose capital is from Ganda riba? Although we may not be part privy to his loan what makes me different from him? My intention perhaps. But, I simply LOWER MY GAZE if against my WILL, PER THE QURAN instructions say. Alhamdulillah. 2 reliefs for one difficulty, eh?
