It is absolutely correct that the element of interest is the most vital and integral part of modern capitalist economic system and the banking industry. It is also a reality that prevailing Islamic banking system not able to get rid of interest. It is how they are managing is merely, not more than a self-deception. Many of the outstanding modern Islamic scholars and thinker referred are doubtlessly advocating that the interest used in modern finance is functionally different from riba. But how?
Here I am fail to digest your argument, Quote ‘’ that riba forbidden in the Quran applies only for those who deserve humanitarian treatment- who need concessional or interest – free loans (qard-hasana) or outright grants (sadaqa) Thus though there is no epistemological ground to think that receiving and paying interest in modern financial transactions is a forbidden thing, Islamic finance institutions are based on the very notion that interest is taboo. Unquote’’ You strengthen your argument with the concept of (qard-hassana) or outright grants of (saddaqa). It is necessary to exterminate misconception of qarze hassana and Saddaqa. Let us take it one by one
QARZE HASNA
qarze ( hasna) the word qarze has trilateral root Q-R-Zd its literary meanings are (al-qarz) to cut, delink (qarzal-mkakan) he delink(avoid some place { Taj ul Uroos}. (qaraza fi sairiih): he bent ( delink ;avoid balance of his body) right or left while walking. {T} Q 18:17.
Here I am fail to digest your argument, Quote ‘’ that riba forbidden in the Quran applies only for those who deserve humanitarian treatment- who need concessional or interest – free loans (qard-hasana) or outright grants (sadaqa) Thus though there is no epistemological ground to think that receiving and paying interest in modern financial transactions is a forbidden thing, Islamic finance institutions are based on the very notion that interest is taboo. Unquote’’ You strengthen your argument with the concept of (qard-hassana) or outright grants of (saddaqa). It is necessary to exterminate misconception of qarze hassana and Saddaqa. Let us take it one by one
QARZE HASNA
qarze ( hasna) the word qarze has trilateral root Q-R-Zd its literary meanings are (al-qarz) to cut, delink (qarzal-mkakan) he delink(avoid some place { Taj ul Uroos}. (qaraza fi sairiih): he bent ( delink ;avoid balance of his body) right or left while walking. {T} Q 18:17.
(qarz) something which is lent or some deed performed in the hope of getting return {T}. I am not touching here deliberately (hasanah) as we need to emphasise here on (qarz) qarz hasnah) is a term which Quran has used metaphorically in 2:245.
This verse when we read it with context expose that in the initial stages when Allah’s system is being establish then anything which is required should be provided collectively and every effort, every type of bodily or material sacrifice that is needed should be made available happily.
All this mention above would be ( qarzun hasana ).
(Al-qarz): to chew {T}
(al-qareez): a ball of fodder that a camel regurgitates and then chews on, and when it is digestible returns it to the stomach for making it a part of his body. {T}
All this mention above would be ( qarzun hasana ).
(Al-qarz): to chew {T}
(al-qareez): a ball of fodder that a camel regurgitates and then chews on, and when it is digestible returns it to the stomach for making it a part of his body. {T}
In this system of Allah, whatever an individual gives to the society in form of (qareez). The society spends it at the proper places to obtain the best results. As, such that which the individual had lent come back to him as an individual of society.
This is why it is said:
2:245 is there someone who wants to give (qarz hasanah) to Allah so that He may return it manifold?
This increase is with respect to results. Nothing is loaned to Allah directly but to His followers. Therefore a society formulated on the lines of Allah’s Laws fulfils all obligations towards the individual that which Allah sets are his responsibilities and recover the dues which have been imposed by Allah. Everything the individuals in society do or give will all be called (qarz- i- hasanah)
I do not think that expression you have used in your argument applies here. Kindly note that there is nothing being offered on humanitarian ground as concessional rate of interest – free loan. Therefore riba does not apply here. There is sufficient reason that it applies to every transaction in modern finance and banking on the name of interest. Any transaction where an excess payment or receipt is made on capital is called Riba/interest/usury.
This is why it is said:
2:245 is there someone who wants to give (qarz hasanah) to Allah so that He may return it manifold?
This increase is with respect to results. Nothing is loaned to Allah directly but to His followers. Therefore a society formulated on the lines of Allah’s Laws fulfils all obligations towards the individual that which Allah sets are his responsibilities and recover the dues which have been imposed by Allah. Everything the individuals in society do or give will all be called (qarz- i- hasanah)
I do not think that expression you have used in your argument applies here. Kindly note that there is nothing being offered on humanitarian ground as concessional rate of interest – free loan. Therefore riba does not apply here. There is sufficient reason that it applies to every transaction in modern finance and banking on the name of interest. Any transaction where an excess payment or receipt is made on capital is called Riba/interest/usury.
SADQA
(Sadqa) its trilateral root is Sd-D-Q and a shade of meanings from (sidq): is truth antonym of (kizb).
(as-sadaqah) means anything which is given in the way of Allah {Taj, Muheet} some people think that (sadaqah) is not binding but is given as philanthropy and that (zakat) is binding. You must appreciate that in Deen of Islam there cannot be any binding (La Ikra fiddin). Muslims in their establish society when Quranic system is implemented, volunteer their wealth whatever is above their needs, goes towards the welfare of their society and the whole humanity at large. But in the interim period, while Quranic society yet to takes its shape the central authority of Deen (ullul Amer) fixes an affordable sum on every individual which Muslim voluntarily pay and it is generally collected. The ultimate of the system is as declared in the verse (2:219) i.e. keep open for the good of others, what is beyond one’s need. For this the word zakah has been used, but in the state of emergency individuals are appealed to donate. Hence whatever they can give at such occasion is called (sadaqah). This too is collected collectively under the system (9:103, 9:60). 33:23 Momineen are those who prove what they promise Allah by their deeds (sadaqeen) 3:150 Verily Allah particularly proved his promise towards you to be true.
Thus it is proved that Sadqa is no way near to any kind of lone. Therefore, Sadqa cannot even relate to any kind of commercial transaction.
(as-sadaqah) means anything which is given in the way of Allah {Taj, Muheet} some people think that (sadaqah) is not binding but is given as philanthropy and that (zakat) is binding. You must appreciate that in Deen of Islam there cannot be any binding (La Ikra fiddin). Muslims in their establish society when Quranic system is implemented, volunteer their wealth whatever is above their needs, goes towards the welfare of their society and the whole humanity at large. But in the interim period, while Quranic society yet to takes its shape the central authority of Deen (ullul Amer) fixes an affordable sum on every individual which Muslim voluntarily pay and it is generally collected. The ultimate of the system is as declared in the verse (2:219) i.e. keep open for the good of others, what is beyond one’s need. For this the word zakah has been used, but in the state of emergency individuals are appealed to donate. Hence whatever they can give at such occasion is called (sadaqah). This too is collected collectively under the system (9:103, 9:60). 33:23 Momineen are those who prove what they promise Allah by their deeds (sadaqeen) 3:150 Verily Allah particularly proved his promise towards you to be true.
Thus it is proved that Sadqa is no way near to any kind of lone. Therefore, Sadqa cannot even relate to any kind of commercial transaction.
It is plausible that some of the Muslim jurists differently attached meanings to riba but they have accurately translated it as interest. Riba means an increase ( I have already posted in my post in the group “ Light of Allah”. I am very much agreed that all increase are not “Riba” that is why Allah declared Riba different from Trade. However, we may also retain English etymological references given below:
Etymology Dictionary (Douglas Harper)
Interest
Financial sense of "money paid for the use of money lent" (Douglas Harper)
Usury
Practice of lending money at interest," later, at excessive rates of interest. (Douglas Harper)
Riba
Interest which is received on loan. To take more than equal {Muheet}
Usury
Practice of lending money at interest," later, at excessive rates of interest. (Douglas Harper)
Riba
Interest which is received on loan. To take more than equal {Muheet}
Some people argue that only usury (interest at such an exorbitant rate that it exploits the debtor) has been declared unlawful by Islam. Therefore, interest at a mutually acceptable rate can be charged, which is usually the case in loans given for commercial purposes. It is in loans given for the purposes of personal needs that the possibility of exploitation exists. The following verse of Qur’an is presented to support this point of view:
O believers! Do not devour interest, doubling and redoubling.[3:130]
This verse, however, does not support the argument. It merely indicates the gravity of the failing of those who, in a time when Infaq (spending in the way of Allah) in relation to Jihad (holy war) was affording great opportunities to the Muslims to earn Allah’s forgiveness, were busy earning interest. This style is used in a language to reprimand a person for the heinousness of his attitude of not only doing something wrong but also showing total disregard for values in doing so. For example, when one says (in English) ‘For God’s sake, [at least] don’t flirt with another woman in front of your wife’, it does not mean that one is suggesting that one should flirt with another woman while one’s wife is not around. To take an example from the Qur’an, consider the following verse:
Force not your slave-girls into prostitution that you may seek pleasures of the life of the world, if they would preserve their chastity. (24:33)
Obviously, this verse does not mean that if the slave-girls are willing, prostitution may be allowed. It merely points out the intensity of the sin of those who force such slave-girls to prostitution as wish to avoid the despicable crime.
Obviously, this verse does not mean that if the slave-girls are willing, prostitution may be allowed. It merely points out the intensity of the sin of those who force such slave-girls to prostitution as wish to avoid the despicable crime.
The Qur’an has not defined Riba. It didn’t have to. The meaning of the word was already clear to those who understood the Qur’anic Arabic. Just as the Qur’an did not have to define Zina (a word used for adultery and fornication), it did not have to define Riba. It merely prohibited both. Riba refers to any benefit which the lender makes a condition for the loan he gives. Moreover, it is also clear from the following verse of the Qur’an that those people gave Riba for commercial purposes as well, for it is this form of interest which increases ‘in other’s wealth’, not the interest on loans given for personal needs of the debtor:
And that interest-based loan which you give that it may increase in the wealth of others does not increase with Allah. (30:39)
Therefore, if anyone advocates that the word is also used in a sense different from its denotation, the onus of proof is on him.
Furthermore, the following verses of the Qur’an leave no room for the argument that only such Riba was declared unlawful as put the debtor in difficult circumstances:
Furthermore, the following verses of the Qur’an leave no room for the argument that only such Riba was declared unlawful as put the debtor in difficult circumstances:
O you who believe! Observe your duty to Allah, and give up what remains [due to you] from Riba [interest], if you are [in truth] believers. (2:278)
And if the debtor is in straitened circumstances, then [let there be] postponement to the time of ease... (2:280)
These two verses have the same context and therefore can be taken together to show that interest has not been prohibited merely in cases where the debtor is in difficult circumstances. The words ‘And if the debtor is in straitened circumstances’ indicate an exceptional case, and point out that the prohibition in the previous verse (2:278) is of interest at a normal mutually acceptable rate.
According to Islahi, the particle ‘ ’ (idhaa: if) would have been used instead of ‘ ’ (in: if), if the words were not indicative of an exceptional case.
To take an example from the English language, let us assume that a police officer says to his subordinates ‘free all these culprits tomorrow. And if a culprit has helped the police, free him today’. As the context of the two sentences is the same, the second sentence makes it obvious that not all the culprits have helped the police. Similarly, when the Qur’an says: Give up what remains [due to you] from Riba... and if the debtor is in difficult circumstances [let there be] postponement to the time of ease....’, it is clear from the second portion that the case of the debtor being in difficult circumstances has been mentioned as an exceptional one. In other words, the prohibition of Riba in the first portion pertains to the general cases of loans given to such people as are not in straitened circumstances. Therefore, it is evident from the Qur’an that interest of all kinds has been prohibited, including that which does not necessarily put the debtor in distressing circumstances, as is the case with interest on commercial loans.
According to Islahi, the particle ‘ ’ (idhaa: if) would have been used instead of ‘ ’ (in: if), if the words were not indicative of an exceptional case.
To take an example from the English language, let us assume that a police officer says to his subordinates ‘free all these culprits tomorrow. And if a culprit has helped the police, free him today’. As the context of the two sentences is the same, the second sentence makes it obvious that not all the culprits have helped the police. Similarly, when the Qur’an says: Give up what remains [due to you] from Riba... and if the debtor is in difficult circumstances [let there be] postponement to the time of ease....’, it is clear from the second portion that the case of the debtor being in difficult circumstances has been mentioned as an exceptional one. In other words, the prohibition of Riba in the first portion pertains to the general cases of loans given to such people as are not in straitened circumstances. Therefore, it is evident from the Qur’an that interest of all kinds has been prohibited, including that which does not necessarily put the debtor in distressing circumstances, as is the case with interest on commercial loans.
It is astonishing for me that renowned Muslim scholars of 13th centuries or early 20th century like al-Sulami as mentioned by Fazalur Rehaman and Mr Rashid Rida rejected the ban on “Interest”. In this situation it become obligatory to determine the weightage of the argument they emphatically present to defy the Quranic injunction.
Mr Rashid Rida argued that, originally Quran morally forbidden riba to prevent the borrower’s exploitation in the pre-Islamic era.
It gives the impression that Mr. Rida (mistakenly or knowingly) ignored the collective wisdom of Quran that once Allah professed a commandment become unalterable law till the day of judgement. Therefore, Rida’s inference become void on the ground that the prohibition of riba will remain enforce and be considered as a war against Allah.
Secondly, Mr. Rida again, knowingly or mistakenly ignored the verse of Quran in which Allah categorical differentiate Riba from trade
It gives the impression that Mr. Rida (mistakenly or knowingly) ignored the collective wisdom of Quran that once Allah professed a commandment become unalterable law till the day of judgement. Therefore, Rida’s inference become void on the ground that the prohibition of riba will remain enforce and be considered as a war against Allah.
Secondly, Mr. Rida again, knowingly or mistakenly ignored the verse of Quran in which Allah categorical differentiate Riba from trade
[2:275] those who consume usury, do not rise except as the one who is being beaten by the devil out of direct touch. That is because they have said, "Trade is like usury." Indeed Allah has made trade lawful, yet He has forbidden usury. Whoever has received understanding from His Rubb and ceases, then he will be forgiven for what was before this and his case will be with Allah. But whoever returns, then they are the people of the fire, in it, they will abide eternally.
Invested Capital + Financial Charge (Riba, usury, interest) = increase is forbidden (it does not involve labour). Capital + labour employed = increase (profit) is not forbidden (it involves labour)
Quranic principle Q: 53:39 for human is nothing but the reward of his labour.
Quranic principle Q: 53:39 for human is nothing but the reward of his labour.
Mr. Fazulr Rehaman an eminent Pakistani-American scholar contributed that according to unknown sources and observer in pre-Islamic practice era exists that initial payment of interest (Riba) for a certain period of time “was not usurious (Riba) and was, therefore, not considered as Riba.
I have purposely bracketed the word riba because in pre-Islamic era these word interest or usurious were non-existent, therefore, question arise as why Mr, Fazular Reman did not use the Arabic words which can bring forward the explicit sense of the deal. Everyone knows Arabic is and was very rich and vast language. His further argument again based on the verse 30:39. Which is already explained above.
Brother you argue that condemnation of riba was established on the idea of its exploitative nature. I am agreed with you here, than you assimilate riba with trade like Mr. Rida but in a different way. You assert as, while the riba is condemned than why not trade. While, trading a trader exploit the market situation in (Seller Market) and byer can also exploit in (buyer market). Therefore, while exploitation become a common factor than why the trade does not deserve the same treatment for Riba and not condemned in a legitimate situation.
I have purposely bracketed the word riba because in pre-Islamic era these word interest or usurious were non-existent, therefore, question arise as why Mr, Fazular Reman did not use the Arabic words which can bring forward the explicit sense of the deal. Everyone knows Arabic is and was very rich and vast language. His further argument again based on the verse 30:39. Which is already explained above.
Brother you argue that condemnation of riba was established on the idea of its exploitative nature. I am agreed with you here, than you assimilate riba with trade like Mr. Rida but in a different way. You assert as, while the riba is condemned than why not trade. While, trading a trader exploit the market situation in (Seller Market) and byer can also exploit in (buyer market). Therefore, while exploitation become a common factor than why the trade does not deserve the same treatment for Riba and not condemned in a legitimate situation.
The exploitation you pointed out in bullish or bearish market situation does not exist in an established Quranic society where a trader (seller) is supposed to sell his goods on the price determined, not by the market forces, as in capitalist economic system, but by the central authority (ullul amer) with the consultation of society where transaction are made and buyer happily accept the prices determined on a Quranic principal that “A man (trader) deserve only the price of his labour not of his capital employed.
Apart from this discussion of Riba / Interest is forbidden or not, but interest is a need of the time as capitalist economic system is prevail globally. Quranic economic system is yet to be discovered and implemented when Quranic state will be establish. I am sure that whenever this system will come in to order the tone of all our modern jurists and religious leaders will be changed Inshallah.
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