Asked in Religion & SpiritualityIslam
Religion & Spirituality
What is riba or usury?
Asked in Islam
Why dont Muslims do usury or riba?
Usury (riba in Arabic) is condemned and prohibited in the strongest terms in Quran. It is explicitly forbidden in Quran. Quran says (meaning translation): " Those who usury will not stand except as stands one whom the Satan by his touch has driven to madness. That is because they say trade is like usury, but God (ALLAH) has permitted trade and forbidden usury.... God (ALLAH) will deprive Usury of all blessing but will give increase for deeds of charity...". So, Muslims do not do Usury (Riba): first as obedience to God commands, and second because by usury you exploit the need of others to money and instead of helping them by charity or giving loan at no profit you gain more money out of them.
Asked in Economics, Banking, Islam
Is the Islamic banking is really Islamic and how?
Islamic banking is, in a sense, like regular banking with focus of no fixed interest rate. The interest in Islam is called "Riba" (Usury). Riba or Usury is strictly forbidden in Islam because it is unfair. Islamic banking dealing focuses on buy and sell for a profit that does not guarantee a profit rate neither for the bank nor the customer.