Imran Hosein's view on Islamic banks

Riba (Usury) is of two major kinds:

Riba An-Nasia - Interest on lent money

Riba Al-Fadl - Taking a superior thing of the same kind of goods by giving more of the same kind of goods of inferior quality, eg.,dates of superior quality for dates of inferior quality in great amounts.

The definition of Interest, the literal meaning of interest or Al-Riba as it is used in the arabic language means to excess or increase. In the Islamic terminology interest means effortless profit or that profit which comes free from compensation or that extra earning obtained that is free of exchange. Riba has been described as a loan with the condition that the borrower will return to the lender more than and better than the quantity borrowed.

As muslims, our main concern when it comes to financial transactions is to avoid Riba in any of its forms, despite the fact that the basic foundation of the world economics and finance today is that of riba and dealing in usury.

The Prophet has foretold us of a time when the spread of riba would be so overwhelming that it would be extremely difficult for the muslim to avoid it. This situation calls for muslims to be extra cautious before deciding on what money payment of financial methods to use in any personal or business transaction.

To make sure that we are safe from Riba, we have to learn which transactions lead to it.

http://muttaqun.com/riba.html

http://www.amazon.com/Islamic-Banking-300-Billion-Deception/dp/1599268698/ref...

Category:

Education

Tags:

• Islam
• Muslim
• Bank
• Banking
• Fraud
• Deception

[lushhmushh]

whats the name of this shiek.. pls help, i would like to hear from him.. may Allah subahana wa taala bless him for his work

[IQ233]

Sheikh Imran Hosein

[IQ233]

Another video to watch is "Are Islamic Banks really Islamic?" by Zakir Naik.

[77moessa]

islamic banks say its not interest but profit. but whats the difference. both are to make money. so they are in fact covering riba name with profit.

[imperial881]

second, with wat money Islamic bank use to buy the things n profit for tat...

1. under mudharabah concept, 80% 20% people who save money r partnership in the bank...Bank manage money on their behalf...n they help people to do investment.which refer to buy things n profit from tat...

2.in islamic finance itself, they hv their own rates of profit( what is the difference between rates of profit n interest rates) one is trade, one is riba...

ofcos they hv other difference, which u can ask, if u wan

[imperial881]

first of all, the islamic bank buy the things that the purchaser wan to buy, then resell to them....okie...Allah forbid riba, allow trades. with this, it become trade, buyer n seller....riba is compounding,uncertainty,intere­st rate fluctate,but if u buy n sell back..both buyer n seller knw wat is their end...buyer knw how much to pay, seller knw how much they will receive....

[RustLionofDesert]

SUBHAN'ALLAH!

[chekdamize7]

SubhanAllah!

[babudiamond]

I agree, Norm of business transaction is a cash transaction. But we need to allow ppl to pay in deferred basis if customer do not have money.

If you are going to your nearest shop in your house to buy rice for example, Shop keeper may charge u higher than cash price. There is no problem in Sharia to charge a higher price on credit sale.

But Sheik raise the valid question, Norms of islamic business in cash basis and credit sale is a exception but Islamic banks have made this exception to norm.

[zeenasworld]

@sm222 i agree

[TruthSeekingPerson1]

@MatrixOfDynamism if it is clear that interest based economy if not correct, why do u need 2 buy a home. We can just work n pay rent....n if u av saved enuf buy 1 room apt instead of dreaming to buy a mansion....

eg: if ur dream car is ferrari and u earn 2k per mth, it doesnt make sense 2 buy 1 mil $ ferrari on credit card i guess. if we do then thr is something wrong with us....same applies for home too....

[NouraTheMuslimah]

EXCELLENT!!