Riba
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'''Riba''' ([[Arabic language|Arabic]]: ربا, {{IPA2|rɪbæː}}) means [[usury]] and is forbidden in [[Islamic economic jurisprudence]]. According to some, this refers to excessive or exploitative charging of [[interest]], though according to others, it refers to the concept of interest itself.{{Fact|date=February 2008}}
==Qur'an==
The [[Qur'an]] states the following on Riba:
{{cquote|That they took ''riba'', though they were forbidden and that they devoured men’s substance wrongfully – We have prepared for those among men who reject faith a grievous punishment ({{cite quran|4|161|style=nosup}})}}
{{cquote|Those who charge ''riba'' are in the same position as those controlled by the devil's influence. This is because they claim that ''riba'' is the same as commerce. However, God permits commerce, and prohibits ''riba''. Thus, whoever heeds this commandment from his Lord, and refrains from ''riba'', he may keep his past earnings, and his judgment rests with God. As for those who persist in ''riba'', they incur Hell, wherein they abide forever ({{cite quran|2|275|style=nosup}})}}
{{cquote|God condemns ''riba'', and blesses charities. God dislikes every disbeliever, guilty. Lo! those who believe and do good works and establish worship and pay the poor-due, their reward is with their Lord and there shall no fear come upon them neither shall they grieve. O you who believe, you shall observe God and refrain from all kinds of ''riba'', if you are believers. If you do not, then expect a war from God and His messenger. But if you repent, you may keep your capitals, without inflicting injustice, or incurring injustice. If the debtor is unable to pay, wait for a better time. If you give up the loan as a charity, it would be better for you, if you only knew. ({{cite quran|2|276-280|style=nosup}})}}
{{cquote|O you who believe, you shall not take ''riba'', compounded over and over. Observe God, that you may succeed. ({{cite quran|3|130|style=nosup}})}}
{{cquote|And for practicing ''riba'', which was forbidden, and for consuming the people's money illicitly. We have prepared for the disbelievers among them painful retribution. ({{cite quran|4|161|style=nosup}})}}
{{cquote|The ''riba'' that is practiced to increase some people's wealth, does not gain anything at God. But if people give to charity, seeking God's pleasure, these are the ones who receive their reward many fold. ({{cite quran|30|39|style=nosup}})}}
==Ahadith==
Riba is also mentioned in A[[hadith]] and is considered one of the seven major sins:
{{cquote|Jabir said that Allah's Messenger (may peace be upon him) cursed the accepter of usury and its payer, and one who records it, and the two witnesses, and he said: They are all equal. <ref>Sahih Muslim, Book 010, Number 3881</ref>}}
{{cquote|It is reported on the authority of Abu Huraira that the Messenger of Allah (may peace be upon him) observed: Avoid the seven noxious things. It was said (by the hearers): What are they, Messenger of Allah? He (the Holy Prophet) replied: Associating anything with Allah, magic, killing of one whom God has declared inviolate without a just cause, consuming the property of an orphan, and consuming of usury, turning back when the army advances, and slandering chaste women who are believers, but unwary. <ref>Sahih Muslim, Book 001, Number 0161</ref>}}
==Jurisprudence==
The interpretation of ''riba'' varies among different [[Ulema|scholars]] of [[Sharia|Islamic law]] and [[Fiqh|jurisprudence]]. The popular view in modern [[Islamic banking]] and [[Islamic economic jurisprudence]] is that the concept of interest itself is ''riba'' and is therefore unlawful.
The definition of ''riba'' in classical Islamic jurisprudence was "[[surplus value]] without counterpart." When "currencies of base metal were first introduced in the Islamic world, no jurist ever thought that paying a debt in a higher number of units of this ''fiat'' money was ''riba''" as they were concerned with the [[real value]] of money (determined by weight only) rather than its numerical [[Value (economics)|value]]. For example, it was acceptable for a loan of 1000 gold [[dinar]]s to be paid back as 1050 dinars of equal aggregate weight of gold (i.e., the value in terms of weight had to be same because all makes of coins did not carry exactly similar weight) - therfore having the same real value. The rationale behind ''riba'' according to classical Islamic jurists was "to ensure equivalency in real value" and that the "numerical value was [[immaterial]] (or it was not of any concern at that time)." The common denominator between the classical view, and the modern view is that paying fiat money back at a higher value than the original loan is riba, if not any numerical value above the original amount. This would still rule out modern loan interest rates in both opinions so has given birth to the modern [[Islamic banking]] and [[Islamic economic jurisprudence]].
==See also==
*[[Allah]]
*[[Islamic Banking]]
*[[Usury]]
*[[Zakat]]
==Notes==
{{reflist}}
==References==
*{{Harvard reference
|title=To the Editor
|first=Gamal M.
|last=Badr
|year=1989
|journal=The American Journal of Comparative Law
|volume=37
|issue=2
|date=Spring 1989
|pages=424-425
}}
==External links==
*[http://learndeen.com/docs/research/Riba%20in%20Islam%20v0-4.pdf RIBA IN ISLAM - A refreshing Look]
*[http://www.rffc.co.uk Riba Free Finance Corporation]
*[http://gifc.blogspot.com Global Islamic Finance]
*[http://www.islamicbanking.com Islamic Banking Portal]
*[http://www.globalwebpost.com/farooqm/writings/islamic/intro_riba.doc Toward Defining and Understanding Riba] by Dr. Mohammad Omar Farooq
*[http://www.bsi-consult.org/a_primer.html Islamic Finance - A Primer.]
*[http://www.hazariba.com/ Exclusive on the subject of Riba (ar-Riba, usury, interest), answering Why Riba was prohibited? and The definition of Riba.]
*[http://globalwebpost.com/farooqm/writings/islamic/riba-hadith.html Riba, Interest and Six Hadiths: Do We Have a Definition or a Conundrum?] by Dr. Mohammad Omar Farooq
*[http://globalwebpost.com/farooqm/writings/islamic/riba_interest.html The Riba-Interest Equation and Islam: Reexamination of the Traditional Arguments] by Dr. Mohammad Omar Farooq
*[http://www.shodalap.com/Interest_Zamir_I.htm Why does Islam prohibit interest (Riba)?]
*[http://www.minaret.org/riba.htm Riba and Interest: Definitions and Implications.]
*[http://www.chowk.com/show_article.cgi?aid=00000984&channel=market%20street Interest is Halal?]
*[http://www.omeriqbal.com/a/90 Interest vs Risk-Sharing in Business Partnerships]
*[http://www.arablife.org/index.php?option=com_content&task=view&id=727&Itemid=187 Khalid Chraibi: Mixed message on "riba" leaves Muslims trapped between usurers and lenders]
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