WHICH FORM OF RIBA IS HARAM ?

[latif]

WHICH FORM OF RIBA IS HARAM?

Riba in Arabic literally means increase, gain or profit. No where in Quran Riba is prohibited?

What is prohibited in verse 2:275 is Al-Riba and not Riba. Adding AL to word Riba makes it "The Riba" which means not every form of Riba but a particular form of Riba is Haram.

To find out what precisely is meant by Al-Riba we shall have to examine a couple of verses adjoining verse 2:275. Now if we read verse 2:272 to 2:280 we find that the context of verse 2:275 is facilitating poor people deserving charity.

Emphasising the need of helping the poor, Allah says " if you cannot help the poor by charity, then give them loan but do not charge usury and also if the debtor cannot pay off the loan, then give him more time to pay off or remit the loan as charity, if you can". Giving loan to people deserving charity is not trading.

Abstaining from illicit means of earning ( 5:42 ) no other mode of investment is disallowed. Verse 2:275 forbid a distinctive form of Riba charged on loans given to needy ones deserving charity.

Allah knows better.

Muhammad Latif Chaudhery
Student of Quran , Lahore
PS: The verses quoted above are appended below

2:272 Your responsibility (O Messenger!) is only to show them the
Right Way (and not to make them walk it) He has established
Rules for attaining Guidance. (O People!) Whatever good you give
benefits your own ‘self’ when you spend for the sake of God. Any
charity you give will be repaid to you, without the least injustice.
(God's rules/laws for Guidance: 2:2, 2:26, 5:46,
7:52, 13:27, 14:27, 20:123, 27:2, 28:50, 31:3, 39:3, 40:34, 40:74)

2:273 And give to the needy who are suffering in the Cause of
God and cannot emigrate and to those who are unable to go about
the earth in search of livelihood. One, who is unaware of their
condition, might think they are free from want, because they
abstain from begging. But you can recognize them by certain signs
though they do not beg insistently. Whatever good thing you
spend on them, God is Aware of it.

2:274 Those who spend their wealth on the needy, by night and by
day, secretly or publicly, have their reward with their Sustainer.
They shall have nothing to fear or regret.

2:275 On the other hand are those who eat Riba (usury) In greed
of money, they run around like someone who has been bitten by a
snake. They claim that trade is like usury. This is not so. [Trade is
the return on labor that is permissible (53] That is why God, in His Infinite wisdom, has
permitted trade and forbidden usury. One to whom the clear
Admonition has come from his Sustainer, must abstain from taking
usury forthwith. What he has taken in the past, he may keep and
his judgment rests with God. (It is better for him to return the
interest he has earned if possible, but the law shall not force him
to do so) As for him who returns to usury, such are the
companions of the Fire wherein they shall abide.

2:276 God blights usury and blesses charitable deeds with
prosperity. God does not love those who defy His Laws and drag
down the potential of the human society.
(Mankind will eventually realize that the interest based economic
system will have to be replaced with an equitable System. God’s
Laws of Economic Development will erase usury and nurture
welfare)

2:277 Those who believe in God’s Laws, do works beneficial to the
society, strive to establish the Divine Order and the Zakaat
Cooperative System, have their reward with their Lord. They will
have nothing to fear and no reason to be despondent. (The
government is responsible for setting up the Zakaat System)
2:278 O You who have chosen to be graced with belief! Be mindful
of the Divine Laws and give up what remains of your demand for
usury, if you are really believers.

2:279 And if you do it not, then know that you are at war with God
and His Messenger. But, if you mend your ways, simply take back
your capital without interest. Inflict not injustice and you will not
incur injustice.

2:280 If a debtor is in difficult circumstances, let there be
postponement to a time of ease. And if you give up the loan
entirely as charity, it is better for you if you only knew.

5:42 They are upholders of falsehood and they make wealth by unfair means. They get bribed into spying. If they come to you asking to judge among them, the choice to accept or reject their request is yours. You have the right to disclaim jurisdiction since they have not yet accepted the Quran and they have the Torah. If you disclaim jurisdiction they cannot harm you at all. However, if you decide to judge among them, do so equitably. God loves the equitable.

[Dear Muhammed, we prefer using QXP for the sake of harmony. Only in some cases are the Hadith-translations allowed.]

[Arnold Yasin Mol]

Salaam,

MA.Malek's explanation of the Islamic Economic System is certainly worth the read:

http://www.astudyofquran.org/web/index.php?id=66,0,0,1,0,0