Interest (Riba) - Islamhelpline

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Interest (Riba)

41. Inflation bank interest riba. 42. I am working in a foreign country where I was told to open a NRFC (Non resident foreign currency account) with a bank in my home country to have my salary credited. 43. I have a religious question i would like to ask, I am in deep debt which is gathering substantial interest by the day that is adding to my already enourmous debt. 44. Members of islam community is doing the business of money lendering. 45. How do we deal with the interest which the banks credit to our account. 46. A widow has been left a fixed amount of money. No other source of income. If she does not put it in a bank, the money will soon dissapear. 47. I am seeking clarification on blanket condemnation of any financial transaction involving interest. I do not see how it is possible to avoid interest in any such transaction. I mean to take interest as a general term meaning `cost of capital`. In this sense, rent is interest. Any leasing arrangement is interest. Any dividend is interest. By calling such income anything other than interest does not make it any less the `cost of capital`. On the other hand, usury is where one person has a stranglehold on another who is incapable of going to the market and secure capital at rate determined by competitive market conditions. In such circumstances one person clearly exploits the victim by charging a rate of interest in no way determined by market forces and the victim is unable to extricate himself from the condition he finds himself in. This is clearly evil. Would it not be sensible to interpret riba as usury and not interest? In the USA, you are in almost total control of interest you pay because you can always refinance at a more competitive rate. People buying their houses on a mortgage benefit by having equity in their homes and are doubly helped by government in an effort to encourage home ownership by way of tax relief in interest payments. Also the person builds wealth to pass on their children. While value of real estate generally goes up, mortgage debt remains constant. To be sure, there is a risk associated with this. Your house can be blighted by adverse development where you end up having more debt than the value of the house. But this is a risk we all have to take. All financial transactions involve risk both to lender and borrower. If you purchase a car, you and the vendor both bet on the car functioning properly. If not both can get inconvenienced. Both take benefit of warranty. Of course, that is a type of insurance. And that is haraam too... but that is another story. Does Quran condemn interest or usury? Is Quran clear? Who can tell? 48. Can we give the interest money to poor relatives/friends or to anyone to help in their marriage fund ? 49. If someones takes a loan from Bank for the purpose of getting married. 50. I live in Pakistan and have a account in Standard Chartered bank. 51. My collegues advice me to take up some policy or loan exempt from tax. 52. Can you please explain the difference of Islamic bank and other banks. 53. What if the company in which a person is going to invest is dealing with capital interest. 54. Secondly if interest is earned to protect the capital from inflation, is it still haraam. For eg. Petrol. 55. My father & he is of the opinion that this money is just like profit in any business. 56. My collegue had to leave for vacation. he has a bank loan which company has no guarentee. 57. I want to Know that i have take some money with my uncle and i have told him i will pay him. 58. To get loan from bank specially in country like India where there is no Islamic banking there are no product for Muslim business man. 59. My husband took a home loan and bought a new flat 2 years back. 60. Can take Islamic loan.