Is it Permissible to Take Loans from Banks?

[@rifatshahriar7612]

This series of excerpts is great. Keep adding videos like these please.

[@stephenconnolly1830]

For more on the subject, the best literature review on usury \ Riba is on Wikipedia: en.m.wikipedia.org/wiki/Riba

[@Tskyn]

Interest charged by banks are generally time value of money. Inflation rate in the us is like 7% and a mortgage may be 3% so overall the consumer wins against inflation.

[@Potjie57]

A practical solution would be to take a basket of commodities I e flour, sugar, milk, rice, gasoline etc. Price it at the time of the loan e.g. valued at $50. Assuming loan amount is $1000 which will give you 20 units of the commodities. At a later period say at repayment the commodities are valued at $55. Then amount owed would be 55*20=$1100. The only problem is what would be the incentive for someone to lend the money and how to incentivise it. Parties could agree on an additional mark up of say x% on the basket at repayment to incentivise it.You don't have to change a whole financial system for it

[@ZaydWalid]

5:30 briefly mentioned the two types of usury

[@Tskyn]

Banking systems interest rates are in line with inflation. Whole idea of ‘time value of money’ needs to be understood before applying the Islamic understanding.

[@MrYusha]

In the UK there are ads on KZbin saying riba is Haram buy your cars from us... Is it a hustle trying to make money off Muslims and their guilt?

[@leebarry5686]

Accidentally spoken

[@leebarry5686]

As for the conventional western financial system, Muslims can make full use of it.

[@abcabcv2905]

You don't wait for muslim countries to challenge the system or institutions to challenge the monetary exploitative system. Challenge it yourself in yourself by yourself. And that is your role and that is your Ibada. Wa Allah 3lam.

[@steinadleradler3431]

How does he come to conclusion that a small rate is not usury and high rate is ? because he can pay a small rate? Other than blaming muslims of the past he did not give any solid answer

[@iljasbaker9655]

He said usury needs to be looked at in terms of the reason for the law prohibiting it, i.e. to avoid the exploitation of the consumer/those in need. The Islamic banks he believes exploits consumers more than regular banks which are more highly regulated. He makes a distinction between regular interest as practiced in the regular banking system and usury, the former being less exploitative. He considers Islamic financial institutions more exploitative than regular banks. Effectively although they don't call it interest their so called bank charges are somewhat equivalent to a 30% interest rate. Some of these institutions have been sued for these practices in the UK. Dr Akram Nadwi of Cambridge Muslim College says he's never known an Islamic bank anywhere in the Islamic world to benefit the poor. He acknowledges that many will not be convinced by this argument and he says he respects their opinion but for him it doesn't really make sense as the shariah's purpose is not to make life difficult for people but to help ease their life and make it easier to worship Allah. But God knows best. Not taking loans for essentials of life is not going to challenge an exploitative banking system. Say you don't take a loan to buy your own house you can be forced into an exploitative rental market, unstable and increasing rents, slow to get repairs done etc. And if you don't take out a student loan your will not get a good job to contribute to meeting your needs, your family's needs and the needs of your community.

[@alialias3913]

Imterst is sponging off from peoples earnings

[@stephenconnolly1830]

Not true, you need to do some reading: en.m.wikipedia.org/wiki/Riba

[@alialias3913]

Interest is slavery tax ..... Its keeps masses poor and denies their rightful due

[@stephenconnolly1830]

Not true. Your view flies in the face of scholarly research. Fear God and do some reading: en.m.wikipedia.org/wiki/Riba

[@mrir2008]

@@stephenconnolly1830 Since when Wikipedia is considered scholarly research?