Prohibition of Riba
BOF Y2S2 2 PFS 2253 ISLAMIC FINANCE
Prohibition of Riba
Prepared by: Nuradli Ridzuan Shah & Abdullaah Jalil
Stages of Revelation
• First stage: al-Rum, 39 • Second stage: al-Nisa’, 161 • Third stage: Ali cImran, 130 • Fourth stage: al-Baqarah, 275-281
Al-Riba: Its Definition • Riba:
– Deferment in the time of exchange (riba al-nasiah) – Quantity of one of the counter values (riba al-fadhl) al-Riba Time Factor Ribawi items
Quantity Factor
Al-Riba: Its Definition
• Nabil Salih’s:
“An unlawful gain derived from the quantitative inequality of the counter values in any transaction purporting to affect the exchange of two or more species which belong to the same genus and are governed by the same legal cause. Deferred completion of the exchange of such species, or even of species which belong to different genera but are governed by the same cillah (legal cause), is also riba, whether or not the deferment is accompanied by an increase in any one of the exchanged counter values.”
Types and Classifications of al-Riba
• Riba al-duyun / al-jaliyy / al-Quran / al-Jahiliyyah / al-Nasiah:
– An increase for the repayment deferment/poseponement in contract of loan
• Riba al-buyuc / al-khafiyy / al-Sunnah:
– Riba al-Fadl: Inequality of quantity between the (ribawi) counter values – Riba al-Nasiah: Deferment of one of the (ribawi) counter values which share the common cillah
al-Riba Al-Duyun / Al-Jaliyy Al-Quran / Al-Jahiliyyah / Al-Nasiah*(excess is charged for deferment)
Al-Buyuc / Al-Khafiyy / Al-Sunnah
al-Fadl
al-Nasiah* (deferment of one of the counter values)
Riba al-Buyuc cUbadah Ibn al-Samit reported a hadith from the Propehet
s.a.w: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt, like for like, equal for equal, and hand-to-hand. If the commodities differ, then you (may) sell as you wish provided that (the exchange) is hand-to-hand.”
al-Riba in Trade -
Prohibition of Riba
Prepared by: Nuradli Ridzuan Shah & Abdullaah Jalil
Stages of Revelation
• First stage: al-Rum, 39 • Second stage: al-Nisa’, 161 • Third stage: Ali cImran, 130 • Fourth stage: al-Baqarah, 275-281
Al-Riba: Its Definition • Riba:
– Deferment in the time of exchange (riba al-nasiah) – Quantity of one of the counter values (riba al-fadhl) al-Riba Time Factor Ribawi items
Quantity Factor
Al-Riba: Its Definition
• Nabil Salih’s:
“An unlawful gain derived from the quantitative inequality of the counter values in any transaction purporting to affect the exchange of two or more species which belong to the same genus and are governed by the same legal cause. Deferred completion of the exchange of such species, or even of species which belong to different genera but are governed by the same cillah (legal cause), is also riba, whether or not the deferment is accompanied by an increase in any one of the exchanged counter values.”
Types and Classifications of al-Riba
• Riba al-duyun / al-jaliyy / al-Quran / al-Jahiliyyah / al-Nasiah:
– An increase for the repayment deferment/poseponement in contract of loan
• Riba al-buyuc / al-khafiyy / al-Sunnah:
– Riba al-Fadl: Inequality of quantity between the (ribawi) counter values – Riba al-Nasiah: Deferment of one of the (ribawi) counter values which share the common cillah
al-Riba Al-Duyun / Al-Jaliyy Al-Quran / Al-Jahiliyyah / Al-Nasiah*(excess is charged for deferment)
Al-Buyuc / Al-Khafiyy / Al-Sunnah
al-Fadl
al-Nasiah* (deferment of one of the counter values)
Riba al-Buyuc cUbadah Ibn al-Samit reported a hadith from the Propehet
s.a.w: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt, like for like, equal for equal, and hand-to-hand. If the commodities differ, then you (may) sell as you wish provided that (the exchange) is hand-to-hand.”
al-Riba in Trade -