Category: Life

Life

Simply, why usury is not good!

m. Gadelmawla

Usury refers to the practice of charging excessive or unreasonably high interest rates on loans, typically to vulnerable or desperate borrowers who have few other options. Usury has been widely criticized for many reasons, including:

  1. Exploitation: Charging high interest rates is often viewed as a form of exploitation, taking advantage of someone’s desperate financial situation for personal gain.
  2. Debt traps: High-interest loans can trap borrowers in a cycle of debt, making it difficult or impossible to repay the loan, and leading to financial ruin.
  3. Unfairness: Usury is often seen as unfair because it places an unfair burden on the borrower, who may have little choice but to accept the terms of the loan.
  4. Social harm: Usury can also harm society as a whole, by contributing to economic inequality and instability.

In many cultures and religions, usury is considered morally wrong, and in some cases, it is even illegal. Instead, many financial institutions and organizations promote responsible lending practices that are fair, transparent, and help to promote financial stability for all individuals and communities.

Life

Usury!

m. Gadelmawla

Usury, also known as riba, refers to the practice of charging or paying interest on a loan. In Islam, usury is strictly prohibited as it is considered exploitative and unfair. Islamic finance principles are based on the principles of justice and fairness, and the prohibition of usury is one of the core tenets of Islamic finance.

The Quran clearly prohibits the practice of usury and declares it as a sin. In Surah Al-Baqarah, verse 275, Allah says, “Those who devour 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 Allah has permitted trade and has forbidden usury.” The verse highlights that while trade is permissible, usury is not.

Islamic finance offers an alternative to usury-based financial systems. In Islamic finance, the lender and the borrower share the risk and reward of the investment. Rather than charging interest on a loan, Islamic finance relies on profit and loss sharing, where the lender and the borrower share the profits or losses of an investment.

Islamic finance also promotes ethical investments that align with Islamic values. Investments in industries such as gambling, tobacco, and alcohol are not permitted in Islamic finance.

In conclusion, usury is prohibited in Islam as it is considered exploitative and unfair. Islamic finance offers an alternative to usury-based financial systems, promoting ethical investments and profit and loss sharing.