(IFER)
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(Suggested By- Zahid Jamil)
Define Ribah and identify current banking products which fall inside and outside the category of Ribah. A phobia prevails in Islamic circles for the term Interest and as soon as this term appears, Islamic scholars declare it Haram. Interestingly, Abdullah Yusuf Ali has always translated word Ribah as Usuary and not interest in his much acclaimed Qurans English translation and commentary.
Banks offer variety of products, some of them attracting low interest rates while others high to very high interest rates. All these products operate on different principles and are backed by different kinds of securities. Fixed interest products may be backed by governments issued bonds which are floated for the purpose of raising money to be used in nation building projects. Other fixed interest securities may be backed by various companies.
Borrowing, lending as well as investing can be for different purposes. Personal use, business use, for urgent family needs, for recreation and for expanding ones capital and assets.
How should Muslims manage their personal and business affairs under the current financial system? Identify banking and financial products which do not contravene with Islamic principles. Allow use of some products which may be described as permissible till an Islamic financial system becomes operational.