Q&A: Interest vs Riba | Dr. Shabir Ally 

Its a universal fact🤣🤣🤣🤣

Lol can't relate yet but it's probably trus

True*

I agree, dont mix up lending and friendship. Its a way to lose a friend. If a friend needs financial help, give him the money to pay back if he can, if not its ok. Business is different, invest money to get a profit or a return as in a written contract (Quran 2:282).

Still this won’t change. “ANY INTEREST AND RIVA ARE FORBIDDEN 🚫” it’s an act against God (Allah).

Really? Banks are not owned by ultra rich? Banks do not confiscate houses and goods, put people into bankruptcy, destroy their entire lives with "bad" credit history. This is your best argument for riba and against Quran?

But aren’t they (interest based mortgages and loans) haram!?

So if we take up a mortgage with interest isn't that just encouraging & growing the business for the interest eaters a.k.a lenders?

This is Q&A

modernists? Sounds like heretics. Islam needs no modernization. Rules are clear. Paying and taking interest are haram, no matter what you call it.

@@comicahmet Riba was not clear to Caliph Umar, (companion of the prophet) - From 'Umar ibn al-Khattab : The last verse to be revealed was on riba and the Prophet, , was taken without explaining it to us; so give up not only riba but also raibah [whatever raises doubts in the mind about its rightful-ness]. (Ibn Majah) - so how do you claim to have better knowledge? The principles of the prophet do not change, but society changes, so the way they are implemented will change.

@@roberthannah7983 ur just talking rubbish.

Drinking 1 litre of alcohol or 1 ml of alcohol both Haram

alcohol is alcohol that's right. But the question here is: is riba really the modern day interest?

@@greenbird1091 actually you probably do consume micro doses of alcohol because a lot of foods have small micro percentage of alcohol that can’t get you intoxicated and are barely traceable but we are allowed to consume this food because it’s such a low dose that it doesn’t effect our thoughts and intoxicate us which is the reason alcohol is made haram

Practical Islamic Finance yup. Five people are cursed. The one who gives. The one who takes. The one who records it. And the Two. Witnesses.

Hadiths are man written books. We should stick with Quran.

Well what about investing money in government issued bonds? If I buy a five year long bond I will get interest of 9% for five years and government will invest that money for infrastructural developments, and if I withdraw that money before five year term I have to payback all the interest to government. *How it's harmful to society?* And if government don't take money from internal resources (like it's citizens) then they have to borrow from IFM or other Big time loan sharks or even from another governments. Which later we the citizens have to pay by over taxation!! Is there anyone educated enough to explain about this bond process? How it is Haram? And forcing government to borrow from other than its citizens is okay? Anyone care to explain?

@@My_Big_Dragon do not give it voluntarily. If the government is comeplling you to give money as taxes. You will not accounted for sin as Allah is ever merciful and all knowing..don't complicate things..you just don't give it voluntarily .jazakAllah

@@SamiMemon The one who takes it would be the one who is giving it (The Mortgagee, the one with the money ) The one who records it would also be the Mortgagee also, the ones who witness, same as well.

I think there is an exist of halal interest in mortgage. although the total payment and calculation is the same, the contract is not. while the conventional interest apply from borrowing money to money (just like you said), the Islamic contract is the Bank will buy the home and own it and the consumer must pay the rent annually. once the accumulated rent achieved the real value of the home (decided by the bank and the consumer), the consumer will have 100% ownership of the house. so Bank do not get profit from loan, but by selling the house with a higher price.

@@chawza8402 Are halal mortgages halal? The bank only buys the house (commodity) because you ask them; legally they own it, however they don't intend to use the house. They rent it to you and give you a percentage in every payment you make, but then charge you extra money (the same as interest rates) in your monthly payment. So why are you paying extra (the same as interest rates/or higher) in your monthly payments, if it is a like for like loan? e.g. 'halal' bank buys house for 100,000 they tell you to re-pay 12,000 per year for 10 years totalling 120,000 why do you pay an extra 20,000 more than the original house price?

​@@Adamsandlerwb I'm not an expert at Islamic Finance but here is my take and this is the same question that I had while looking information regarding the halal mortgages. if anyone can explain or correct me, please I'm open to any correction. in the normal interest rate, we take profit from the Loan (or the amount of money to borrow) which is Haram and not how Halal Mortgage operates. but in Islamic transaction it is allowed to make profit of an Asset for example, a House, toaster, bike, utensils. since the Bank owns the House (Asset) they can sell at any price they want. and the customer will pay the bank's profit, not a loan. because *there is no loan*, we are just paying the house that already paid by the bank and owned by the bank. if I use your example, the customer did not loan 100.000 to buy the house, but buying the house with 120.000. (100.000 is the bank and the original house transaction, not yours.) just I stated, the end calculation might be the same. buy the contract is different. remember, the 20.000 is not interest that you pay, but it's the margin profit that the customer willing to pay. it is similar like buying random clothes in the street and selling it on markup price on ebay.

@@chawza8402 Correct. It appears halal however if the borrower is asking the bank for a house costing 100,000 and the bank says ok we'll buy this house for you and sell it to you for 120,000 but **first WE must sign a contract agreeing to these terms, (contract signed between borrower and bank BEFORE the bank is in possession of the house/commodity - stating the house will be bought by the bank for 100,000 and re-sold in monthly payments equalling 120,000) how is that helping the borrower already un-able to afford the 100,000 (hence asking the bank). This is essentially the same riba/interest logic and pushing the borrower further in debt, whilst the bank gets richer for essentially making money from money (technically a purchase according to the halal bank). If the bank bought houses in cash and advertised these properties (with the selling price) and a buyer/borrower came to the bank and asked them which houses they have for sale, and chose a house that the bank ALREADY owned (BEFORE signing a contract with the borrower), and THEN the bank worked out a contract and selling price with the borrower this would be halal, as the bank have a house business, not a contract hold/re-assignment interest scheme. The bank already has the house as collateral if the borrower fails to keep up with payments, therefore they would not lose money on their initial purchase. So the extra 20,000 is for what exactly? Why cant the bank lend the money at the original house price with no extra cost? **The key thing is the bank DOES NOT own the house BEFORE signing an agreement with the borrower **AND the bank would NOT have purchased this house IF the borrower had not asked them too, therefore the bank is NOT in the property business BUT in the making money from money /riba business. Legally it is halal however logically/morally it is exactly the same as a non-halal bank

This kind of usury is paper currency versus gold This is why Gaddafi was killed because he wanted to sell oil in gold Good to know the truth about usurious banks, you are approaching the truth

U have answered urself,u take a loss in that scenario,that's it,concerning inflation its basically the market has risen its selling prices,which the seller has every right to do

Flouss - Lend money to a friend - forget about the interest, you will be fortunate to get back your capital 😰

This scholar are narrow minded Usury ia haram not interest if its not exploiting you

Janaaaaaa

Exactly. By saying it's okay to give, the borrower will just add more fuel to the fire 🔥 (the lenders. a.k.a interest eaters) thus the cycle continues

not only in western countries but in asian countries there are plenty of poor people. so you mean it is halal for westerns but not for asians. or it is halal for all the muslim communities. brother it is haram either giving it or taking it. no mortgage

@@agribusiness689 My thinking has changed considerably from what I said in the above comment... it is in agreement with you.

@@grandmasterqz what made you change your stance on this?

Riba is 100% haram and doesn’t become halal living in a western country or on mars. If a person cannot afford to buy a house then live on rent but do not take a riba loan because you’ll be living on be living under our Prophet Mohammed’s curse so all your Salah, fasting, Hajj etc will not be accepted. Think Jannah everyday and you’ll always make halal/successful decisions. May Allah (swt) protect all of us from riba. AMEEN.

If that is the only way than yes. It is forbiden to pay it voluntarily just so you can buy fancy car for example!

He's saying that because today there arent any banks that doesnt do interest

@@alif-mustaqim Doesn't matter. IT IS HARAM EITHER WAY

@@farisqneibi2371 since there aren't any banks that do not do interest, it leaves us with no choice but to pay interest

Alif Mustaqim i am doing just fine in my life

That's what I wanna know

Same here

Yes , it's also riba

Of course. Any benefit from someone being in debt to you is usury.

It does not elaborate. It adds extra teachings to the Qur'anic teaching, making life difficult.

He doesn't reject it but he didn't elaborate his opinion clearly. I think what he meant is that paying riba voluntarily is forbiden but if you are compelled by the goverment or if paying riba is the only way to do things, for example if riba is gonna give you financial freedom and not paying it will make you financial slave then it is okay to pay because that is not in your controll, and Allah is understanding and mercifull. Either way, Allah wants us to be devoted to him not slaves to someone else for the rest of our lives.

Please read it : The Last Book or Books? salaamone.com/last-book/

The ahadith take the verses out of context in the name of elaborating.

So was Abu Hanifa a heretic?

Don’t work in a place dealing with riba because you’ll be counted as one of the 5 cursed. Do dua and apply for other jobs and InshaAllah you’ll be successful because your Rizq was written before you were born don’t forget. Have faith and do the right thing towards Jannah and not jahannam.

Asad Khan I agree

Obviously the deal is beneficial to the one paying or he would not do it!

Donate it!

If the interest given from the banks is mandatory and you cannot refuse this service and you cannot save your money any other way (cash) then the interest has to be used in some way. Agree or disagree?

Easier to say. I challenge you can't live one day without touching one thing that was produced by riba. Clothes, food, transport and what not. Each industry is under Debt and paying riba to banks. So stop buying clothes from the brands that are in debt, stop buying food from under debt companies, stop flying coz your airline is in debt. I honestly think we need a better understanding of what riba is that Quran talks about. Modern economy is way different than before.

play station This is a glib response. You’re creating a binary choice of either dealing with riba or live in a cave. I’ve suggested avoiding direct riba involvement such interest based loans and lending money on interest. The unavoidable derivative involvement of interest in the form of consumer products is not an excuse to accept all direct riba. By your reasoning we should consider consuming alcohol and zina as some of our purchases indirectly have a link to these activities.

@@homopolemicus3449 Alcohol and Zinah cant be evolved or developed for the better unlike modern day economy where governments have put together laws to avoid abuse of financially vulnerable by the few rich. Alcohol and Zinah are Haram and so is taking *the* USURY which Quran speaks about. The argument here is about the modern day interest that has many more facets than the Usury that Quran speaks of (provided we are understanding it correctly). So you are comparing apples to oranges just to attack my opinion. I want YOU to substantiate your stand please. If you can't touch interest then why eat food that was produced with interest? It all becomes subjective all of a sudden I see. PS: I am neither for or against what this video is about. I am challenging either side before I make my own opinion. Allah helps us.

@@playstation9435 The Hadith explicitly mention that the consumer, payer, witnesses, and writer of the Riba contract are cursed. I'm not sure what's the point of arguing here. There is another Hadith that says that there will come a time where everyone will be affected by the "dust of Riba", and it seems we are living in such a time today. The very notion of fiat money that is controlled by the Fed at their whim as they increase and decrease interest rates means that we are all affected. However, this does not give us an excuse to deal directly with Riba contracts, we are to avoid them as much as we can, and there are Halal alternatives. The fact that the industries you mentioned are dealing with Riba is their problem, they are going to be accounted for it, it does not make the actual products they deal with Haram, that's a fallacy. On a side note, we should fight consumerism, it's what's driving this entire mess we're in to begin with. Only purchase things that we need, and we should not get dragged into the latest fads and styles that come every year.

@@zhamed9587 Assalamunalaikum, I don't have any disagreement with what you said. I know very well about these hadith and their implications and in no way I am suggesting direct dealing with Riba contracts. Estağfurullah. The point I am making is, extrapolation of such hadith is questionable. For e.x. If you invest in a company that is producing halal products and helping the environment and what not then your investment become haram in case the company has debt. I have seen this argument on YT and then I raise questions I asked above that fine let's agree that putting money into such a company is Haram. Then what about buying products from such a company (lets also assume we are not part of the consumerism hysteria). Aren't you literally supporting the whole debt process by putting your money for products that are produced by Riba. The hadith of everyone involved in a Riba transaction being cursed was brought in the Islamic world to abolish the whole system all together. So why are we ignoring that big fact when we are buying products from debt ridden companies. Our aim should be boycotting such products and force these companies to go bankrupt or pay their debta first. Now let's look at another example, people argue that renting is ok than taking a house loan cause that's haram. Now, what happens in most cases is, the place you rent has been bought with a loan from the bank by the landlord to whom you are paying rent. You pay him and he pay the same money to bank to pay-off his debt. So if you think about it, you are literally paying the interest for the house you are living in. You can't just say it's not under my name hence I am exempted. You are not because you know that the house has been bought on riba and your payments are going directly to the banks eventually. Now living in the West, where can I find such property that is cheap enough and in a safe neighborhood, that has not been touched by riba if I have to agree with the scenarios I mentioned above. This is why I think extrapolation of Hadith is easy by people living in ME cause they don't face the complexities of the modern world. Well actually even living in the ME don't let you go off the hook. The governments over there are actively investing in stocks and bonds so any benefit you receive from the government is haram as well. I see people become subjective in such cases that ohh I am not involved directly in the riba transaction so I am exempted, really that's so childish. I mean who are we trying to fool here by bringing up these technicalities. Haram is haram whether it's first hand or second hand. But honestly I don't think the essence of Islam aim for hardships for genuine followers of the faith. If someone wants to buy a house with the intention of securing a safe place for his family and he has no other option than to approach a bank then I honestly believe that the God almighty who is rahman and raheem and loves us more than anyone else will be compassionate. Clearly the Quranic verses curse the people who *TAKE* interest. From the verses and the Islamic history you can understand that these riba eating people didn't have good intentions and were a curse to the society. Now how come people like us who believe in akhirah and fear God and don't have evil intentions to abuse anyone else are the same as the riba eating people mentioned in the holy book. The hadith that you mentioned was in the context of banning the whole practice all together in the Islamic sanctuary because a Muslim can still participate in the riba transaction without taking the riba and holy prophet wanted to abolish the practice all together. Now can we apply the same ruling in a non Islamic society like ours? Plus modern day economy is so different. The value of money depreciates over time, the value of assets appreciates over time and this makes borrowing money a lot more complicated especially if it's from Non-muslims. I give you $100 today and then get $100 dollars back from you after 10 years when the worth of dollar is much lower. Now mind you, if you take any thing in return in addition to the amount you lend then it will be classified as riba. Now if we go with literalism then you have incurred a loss and abused your financial situation yourself by receiving a depreciated sum of money. Same goes for renting. Such rulings about riba came to prevent abuse of people. Now what happens in the case of renting is exactly that. You keep paying money that's to someone else and make little to no savings for your future. You are in a worse economic situation than you would have been if you bought a house where you contribute towards your asset monthly instead of filling someone else's pockets. Renting is worse than taking a loan if you think about economic vulnerability it brings. Of course if you go by literalism then you won't see beyond the term interest based loan (even though we still enjoy products from interest). If I were in ME with Oil money and government subsidizing my bills and air conditioned house and easily accessible houses from the riches of oil trades then yeah I can also say taking loan for buying a house is haram even though my government buys corporate bonds and invest in all sorts of stocks but whatever, I will still tell the world that yeah keep renting and don't buy a house. I just pray to God to guide me through this because I don't expect help from anyone else but him. All these YT sheikhs have their own interpretations from the comfort of their lifestyles and probably don't even know the complexities of modern day economy. You can't say if I am not involved in riba transaction first hand then you re exempted. So with that logic if your friend murders someone to grab his money and then buy you a gift from that money will you accept that gift? No you will not because you know that it comes from haram. Same is for products from riba based companies. Riba is even bigger of a sin so how come people ignore it when it comes to eating your favourite chocolate or that branded shoe you are wearing. And then also by literalism I can prove that workong in a company that has debt is making your salary haram. I mean clearly all these examples are not valid because of the complexities of the societies and so is taking house loan for necessity. God helps us all.

I think you are quite right. Riba is about exploitation, not about productive investment, whether in bonds or stocks, or lending for a good purpose within the borrowers means, like buying a house or car. I think asking Islamic scholars to opine on modern financial issues they know nothing about is a mistake. They should stick to more important issues like ethics.

I believe that most scholars just don't have the courage to take the matter with all its elements in deep and even if they come to a conclusion that it is not haram they won't necessarily have the courage to broadcast it to others fearing responsibility. For this reason, I believe in these matters one has to read and get knowledge and read opinions and then based on all that take his own reflection and decision while asking Allah for guidance.

That's what mortgage insurance is for.

Mortgages is haram whether living in a western country or mars. If paying interest then you come under the curse (Baddua) of our prophet (saw) then all your Salah, fasting, Hajj etc will nullify so you’ll die a loser. Think Jannah and not jahannam and you’ll make correct decisions in life. Living on rent is halal so go for it and don’t think it’s a financial loss because it’s not.

@@tc1817 yeah good luck with that

You sure it’s internet or usury? 2 are different things

@@sadeed2839 usury is a type of interest. Lending money with very high rate of interest is called usury

Green Bird yes

Naik is prohibited in several countries for hate speech. Hosein just rants on about evil bankers.

@@roberthannah7983 your excuses doesnt make loan bank on interest become halal

She's doing her job and is modest. So the fitna is because of you.

Then get married and enjoy a real wife