Transactions based on Ribâ or Interest

Economics, Part 5-Principles of Business / Thursday, June 3rd, 2010

There is a very major sin in conducting transactions which are based on ribâ or interest. The Quran and Hadîth have mentioned many harms and evils in this regard and have greatly emphasized abstention from such transactions. Rasûlullâh sallallâhu ‘alayhi wa sallam cursed the payer of interest, the receiver of interest, the person who acts as a proxy for such a transaction, the person who writes it down and the person who witnesses such a transaction. Rasûlullâh sallallâhu ‘alayhi wa sallam also added that the payer and receiver of interest are both equal in this crime. It is therefore necessary to be extremely cautious in abstaining from such transactions.

The masâ’il in this regard are very intricate. On trivial transactions one can be regarded as committing the sin of involving himself in interest. Many people do not even realize that they have committed a sin. We will explain the necessary masâ’il in this regard. When conducting any transaction, always bear these masâ’il in mind.

Note: According to the norm in India and Pakistan, all things can be divided into four categories:

(1) Gold and silver, and items that are made from them.

(2) Items other than gold and silver that are sold by weight, such as dry groceries, crops, steel, copper, wool, vegetables, etc.

(3) Items that are sold by measurement, such as fabrics.

(4) Items that are sold by counting, such as eggs, mangoes, guavas, oranges, goats, cattle, horses, etc.

Try and understand the rules of all the above individually.

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