What is Riba, is it same as Interest Money? - Assim al hakeem

Summary

This video explores the concept of riba as defined in the Quran, clarifying its implications in Islamic finance. Riba, often translated as interest or usury, is categorized into two main types: riba al-nasia, which involves an increase due to delayed repayment, and riba al-bai', which concerns unequal exchanges of specified commodities. The video emphasizes that both borrowing with interest and earning interest on deposits are forbidden in Islam, with severe warnings against engaging in riba found in Surah Al-Baqarah. Overall, it underscores the importance of ethical financial practices in Islamic teachings.

Takeaways

• 📖 Riba in the Quran refers to unjust increases in wealth, primarily associated with interest.
• 💰 There are two main types of riba: Riba al-Nasia (interest on loans) and riba in commodity exchanges.
• ⏳ Riba al-Nasia involves an increase in the amount owed in exchange for a delay in payment.
• 🔄 In a loan example, if €1,000 is borrowed and repayment is delayed, the added €100 is considered riba.
• ⚖️ Certain commodities like gold, silver, wheat, barley, salt, and dates must be exchanged equally and simultaneously.
• ❌ Any unequal exchange, such as different types of dates, constitutes riba.
• 🏦 Bank practices, including charging interest on loans and offering interest on deposits, fall under the definition of riba.
• ⚠️ Riba is classified as one of the seven major sins in Islam.
• 📜 The Quran warns that those who engage in riba are at war with Allah and His Messenger.
• 🙏 Believers are encouraged to seek protection from the consequences of engaging in riba.

Q & A

What does 'riba' mean in the context of the Quran?

'Riba' refers to any unjustified increase or addition taken on loans or specific exchanges, often translated as usury or interest.

What are the two main types of riba mentioned?

The two main types of riba are 'riba al-nasia,' which involves delayed payment, and another form that relates to simultaneous exchanges of specific commodities.

Can you give an example of riba al-nasia?

An example of riba al-nasia is lending someone 1,000 euros and demanding 1,100 euros after a delay due to non-repayment, where the extra 100 euros is considered riba.

What are the specific commodities that have rules regarding simultaneous exchange?

The specific commodities include gold, silver, wheat, barley, salt, and dates, which must be exchanged equally and without delay.

What happens if you exchange unequal amounts of these commodities?

Exchanging unequal amounts of these commodities, such as one kilogram of dates for two kilograms of another type, is considered riba and is prohibited.

How do conventional banking practices relate to riba?

Conventional banking practices, such as charging interest on loans or providing interest on deposits, align with the definition of riba and are considered impermissible in Islamic finance.

What does the Quran say about dealing with riba?

The Quran warns that those who engage in riba will face severe consequences, including waging war against Allah and His Messenger, emphasizing the gravity of the sin.

Is there a difference between interest from banks and riba?

No, the interest charged by banks is considered riba, as it involves unjustified increases on borrowed amounts, which is forbidden in Islam.

Why is riba considered a major sin in Islam?

Riba is considered a major sin in Islam because it promotes exploitation and injustice, undermining the ethical foundations of financial dealings.

How can Muslims avoid engaging in riba?

Muslims can avoid riba by seeking alternative financing methods that comply with Islamic principles, such as profit-sharing arrangements or Islamic banking products that do not involve interest.