Usury (Riba), Gharar (Uncertainty) & Maysir (Gambling)
USURY ( RIBA) , GHARAR (UNCERTAINTY) & MAySIR (GAMBLING)
USURY ( RIBA)
Definition:
In literal meaning, riba or interest means excess,increase or addition.
In Islamic terminology, riba means effortless profit or the profit that comes from the late payment from the loan. The interest charge for late payment in the repayment of a loan is considered as riba.
(an-nahlu : 90)
Allah allows trade and prohibited riba (2 : 275)
Interest is only considered as riba if the amount loaned is “doubled and re-doubled” (3 : 130)
Types:
• Riba an-nasi’ah is the stipulated interest that the lenders take as their profit in consideration of the time given to pay back the loan. It is defined as excess, which results from predetermined interest (sood) which a lender receives over and above the principle (Ras ul Maal)
• Riba al-fadl defined as excess compensation without any consideration resulting from a sale of goods. it is applies in the barter trade system which goods are been traded in the same amount but in the different value. For instance, exchange gold with foods.
Why riba is condemned in Islam?
In terms of economic, there will be instability of economic condition caused by the excessive vitality in interest rate, exchange rates and commodity and stock prices. – making the rich become richer and the poor become poorer, because rich persons do not have to do anything as they will get profit from the interest paid by the debtors and the debtors have to work hard to pay back the loan. This will cause injustice and will misuse the others right (11 : 85) , (26 : 183)
Moral – do not think of others liabilities. – will make people lazier because they have done nothing to get their income.
Social – rich get richer – relationship between others might be lost because of the welfare that is not done by the rich person to the poor, Allah has said that we have to protect the poor by eliminating riba and giving zakah (30 : 39) – when muslims
USURY ( RIBA)
Definition:
In literal meaning, riba or interest means excess,increase or addition.
In Islamic terminology, riba means effortless profit or the profit that comes from the late payment from the loan. The interest charge for late payment in the repayment of a loan is considered as riba.
(an-nahlu : 90)
Allah allows trade and prohibited riba (2 : 275)
Interest is only considered as riba if the amount loaned is “doubled and re-doubled” (3 : 130)
Types:
• Riba an-nasi’ah is the stipulated interest that the lenders take as their profit in consideration of the time given to pay back the loan. It is defined as excess, which results from predetermined interest (sood) which a lender receives over and above the principle (Ras ul Maal)
• Riba al-fadl defined as excess compensation without any consideration resulting from a sale of goods. it is applies in the barter trade system which goods are been traded in the same amount but in the different value. For instance, exchange gold with foods.
Why riba is condemned in Islam?
In terms of economic, there will be instability of economic condition caused by the excessive vitality in interest rate, exchange rates and commodity and stock prices. – making the rich become richer and the poor become poorer, because rich persons do not have to do anything as they will get profit from the interest paid by the debtors and the debtors have to work hard to pay back the loan. This will cause injustice and will misuse the others right (11 : 85) , (26 : 183)
Moral – do not think of others liabilities. – will make people lazier because they have done nothing to get their income.
Social – rich get richer – relationship between others might be lost because of the welfare that is not done by the rich person to the poor, Allah has said that we have to protect the poor by eliminating riba and giving zakah (30 : 39) – when muslims
References: Al-Zuhaylı, W. 1997. Al-Fiqh Al- 'Islamı wa 'Adillatuh. Damascus: Dar Al-Fikr. Fourth revised edition. 'Ibn Taymiya, A. 1998. Al-Fatawa Al-Kubra. Cairo: Harf (reprod.): Dar Al-Kutub Al-‘Ilmiyyah. in Encyclopedia of Islamic Jurisprudence (CDROM). M A El-Gamal, 2001 "An Economic Explication of the Prohibition of Gharar in Classical Islamic Jurisprudence": http://www.ruf.rice.edu/~elgamal/files/gharar.pdf