In this day and age, controversies over the definition of “riba = الربا” continue among Islamic scholars. Riba is usually translated as “interest” or “usury” into English. A party of…
Continue ReadingAlms versus Interest Sadaqah (صدقة) versus Rib’a (ربا) Financial aids provided without expecting anything in return are counted as alms (sadaqah) in Islam. On the other hand, interest is the…
Continue ReadingFirst of all, we need to tell that violating one of God’s commands deliberately can take you to the limits of kufr, which means ignoring God’s verses, if you do…
Continue ReadingAny amount of money received in addition to your capital is interest, and it is haraam. The only exception is the rate of inflation: Before the fiduciary monetary system (paper…
Continue ReadingThey are the presents of the banks that offer the credit card and presents are halal. You can use them.
Continue ReadingBefore the fiduciary monetary system (paper money system), money was made of gold or silver, which are precious metals. Therefore, any amount of increase added on the principal was obviously…
Continue ReadingThe act of using counterfeit products is similar to acquiring things which you are indeed not entitled to, and this is only another description of “stealing”. Therefore, using counterfeit products…
Continue ReadingInterest is the extra money that is gained by loaning certain amount of money for a certain time period. That extra money received is considered as interest for the authorities…
Continue ReadingDo not resort once again to the forbidden (haraam) in order to pay your debts. A mistake cannot be corrected by another mistake. Otherwise, your debt can turn into a…
Continue ReadingSuch a partnership would not be permissible. Gained money would be “interest”. If one likes to make a partnership, he needs to buy agreed amount of shares in return…
Continue ReadingMajority of scholars, compared discounts granted for early payment of the debt to the additions to the debt for late payment, and thus regarded this practice same as interest. On…
Continue ReadingWhen people die, the possessions and receivables transfer to their inheritors. Someone who is in debt to the deceased then becomes indebted to his inheritors. Therefore, the debt must be…
Continue ReadingTrading different types of currencies is called exchange, or foreign exchange (abbreviated: forex). While exchanging, the amounts do not necessarily have to be equal but the equivalents must be paid…
Continue ReadingTrading things that are unlawful is also unlawful. Allah the Almighty commands: “Whoever intercedes in a good cause shall have a share from it; and whoever intercedes in an evil cause…
Continue ReadingThe differential in borrowing and lending can be calculated according to the changes in value of gold or silver or the rate of inflation. Nowadays gold and silver are not…
Continue ReadingYou would not be responsible for missing a credit card payment in case of financial impossibility. However, you must be utterly careful not to cause these interest-based transactions, by accounting…
Continue ReadingLeasing, which actually means financial renting, is buying an item and renting it to people or companies who are in need of it. This gives an opportunity to invest without…
Continue ReadingThese properties are natural resources. Normally, they belong to public authority. If the public authority privatizes, then there is no harm in buying/selling these properties. But if there is no…
Continue ReadingA bond is a debt security which includes interest. Giving/taking loans on interest is forbidden in Islam. You ask for the ruling of buying/selling these kinds of loans as a financial instrument….
Continue ReadingOne of the main principles in business is to stay out of interest based income. But it seems that your company does not mainly deal with interest. In these situations,…
Continue ReadingIf the debtors do not pay in time and the value of debt amount changed due to inflation, you can demand the difference caused by inflation from the debtor. The…
Continue ReadingAllah the Almighty says: “He has prescribed for you the religion which He enjoined upon Noah, and which We revealed to you, and which We enjoined upon Abraham and Moses…
Continue ReadingMortgage is “a conveyance of an interest in property as security for the repayment of money borrowed” (wordreference.com). As you can see in the definition, interest is conveyed through mortgage. Dealing…
Continue ReadingThere are different things you can buy/sell in stock market. One of them is called stock certificate. This one is theoretically permitted to buy/sell, for that it means the ownership…
Continue ReadingIt is not permitted to rent property to people or corporations that work directly on a forbidden issue. Allah the Almighty says: “Who intercedes in a good cause shall have…
Continue ReadingIt is only permitted if the tendering authority is the owner of the business. The company can assign its business to any sub-contractor company it wills. But it is not…
Continue ReadingIf someone asks for 10 grams of gold or its actual market value as a loan, and returns it back with either gold or its actual market value, then there…
Continue ReadingGoldsmiths neither use the gold as an ornament, nor as a tool to make production. They process on it to produce different shapes of gold and sell them. Giving gold…
Continue ReadingRenting and interest differ from each other by these aspects: A) Interest 1. Interest comes out from giving (lending) money or money-like goods for a certain period of time and…
Continue ReadingThis is considered usury under the image of trading. In this process, the person who is in need of cash will buy from the shopkeeper, for example 97 liras in…
Continue ReadingIt can only be lawful if it is cash bargain and the gold is physically transferred to the buyer at the same time either by hand or via bank account…
Continue ReadingQuestion: A construction company applied to the municipality for saving our land which is announced as green land unjustly. It turned out positive. But the municipality asked illegal money for…
Continue ReadingThe narration that forbids selling goods which are not possessed is like this: From Hakim Ibn. Hizam: I came to the Messenger of Allah and said, “Someone comes to me…
Continue ReadingInterest profit is not like pork or wine. It is not possible to distinguish the money earned in a halal way from the unlawful (haraam) profit. Interest profit is haraam…
Continue ReadingIt is not lawful to buy or sell gold in installments. Our Prophet stipulated that purchase and sale of gold should be in cash and the transfer should be on…
Continue ReadingA bank loan means a debt with interest. Interest is one of the biggest sins. It is not a right thing to borrow an interest-based loan immediately when a financial…
Continue ReadingCredit means, loan with interest. No bank would loan without interest. Although it may be called ‘processing costs’ or ‘commission’, banks try to benefit from the money they loan. Giving…
Continue ReadingNational Savings Certificates and Treasury Bonds are debentures with interest. The income earned from them is RIBA. If Finance Institutions run in accordance with their systems, which means they do…
Continue ReadingQuestion: I am working at a car company. When our customers are going to buy a car, they are using credits from the banks or the finance houses. In one way…
Continue ReadingJizyah is a tax by the government. If the government is Islamic-based, tax is collected from non-muslim citizens. Individuals do not have the right to collect tax/jizyah from any of…
Continue ReadingLife insurance does not base on the principles of risk, damage or cooperative sharing. Basic principle of life insurance is, to deposit money in a bank and retrieve it together…
Continue ReadingInterest is the income provided by ‘capital’, which is a factor of production. In other words, it is a sum paid or charged for the use of money or for…
Continue ReadingAccording to Qur’an, every type of loan that is given to provide income is called usury; and the provided income, that is interest, is also usury whatever the ratio or…
Continue ReadingMoneylenders were not satisfied with the “two safkas in one safka” concept so including another “safka” they established the “bey bi’listiğlâl” (البيع بالإستغلال). The term “istiglal” refers to the…
Continue ReadingWith the name of Allah the Beneficent the Merciful, Whatever Allah- the holder of all creatures- does, is beautifully done. His beneficence is infinite and his mercy abundant. He…
Continue ReadingNobody can produce everything to meet all his needs. We do meet the vast majority of our needs such as nutrition, housing, and so on with the goods and services…
Continue ReadingThe Glorified Allah commands: “Those who eat usury cannot behave different from those who have been deceived[1] by Shaitan. This is the reason they say, “Trading is just like usury”….
Continue ReadingThe Glorified Allah commands: “O believers! Fear Allah! If you are of the believers relinquish what remains (due) from usury. If you do not do it, then you are in…
Continue ReadingThe Glorified Allah commands: “Whatever you lay out as usury, so that it may increase in the property of men, it will not increase for Allah. Whatever you give as…
Continue ReadingFirst, the usury was prohibited with the following verse: “O believers! Do not devour usury that doubles and redoubles. Be careful of (your duty to) Allah, that you may be…
Continue ReadingThe term used to define usury in the Quran is riba. Riba(الربوا) or (الربا) in their infinitive form stand for ‘add’ and ‘increase’ while in their noun form they do…
Continue ReadingThe saving of money is called accumulation. The system of accumulations by paying interests and its lending with interest to a third side is called the credit system. Contemporary…
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