Why is Interest Forbidden in Islam? - Sayed Ahmed Al-Qazwini

Al-Rasoul Islamic Society || Halifax - Canada

[@Anonymous_110]

It covered nearly all aspects of interest and solved many questions.

[@Anonymous_110]

MashaAllah very useful topic for Muslim community and beautifully explained. Bundle of thanks. :)

[@Ace-t4p]

JazaakAllah

[@dahoodmusa3714]

Praise be to Allah

[@zubaydaabdulaziz953]

A very useful topic, but how do i download, thanks

[@mujaddid313]

Alhamdulillah mortgage for housing by islamic bank in malaysia already use the 3rd method.

[@sayedheather9026]

Salam, when I bought my house on mortgage, I had intended that 35% down payment I made is my share in the house and I have to pay rent on 65% Of the house. My question is the this the right way to do it?

[@nv8084]

I enjoyed the first half of this video. Great explanation of why Riba is forbidden. Although, some of solutions that were suggested are questionable. To take an interest bearing loan with the intention of it being a "gift" is completely wrong and misleading as YOU approached the bank and initiated the transaction with the bank, therefore does not make it a gift. It is interpreting the words of Allah SWT to suit ones self, not as it was intended. Effectively the same as eating pork and saying this is not pork, it's beef, I intend for this pork to be beef...

[@786buzzy]

Great scholar you are

[@seektruth581]

This is what their greatest Shia scholar says. Despite the fact Riba is detrimental to society, if you think it's a gift it's not Riba anymore.

[@MeMe-eb8pe]

What about the money we keep in the bank? Is what the bank gives us also haram? We don't demand it rather it is determined by the bank

[@mohammednajjar2867]

I can't fool myself with that. What's point of Allah making interest haram if you can get away with it with changing your intention. You still contribute to that social problem (gap between rich people and poor people etc) despite changing intention. If that would be okay then the prophet could say to his people that Allah made interest haram but I have another way for you to make it halal for you and that's to change your intention. So what's the point then if Allah make it haram if you can still get away with it.

[@nazneenahm]

Funny reasoning. When a strong earthquake comes, close your eyes and pretend you are rocking in a hammock and you will be safe.... In the matter of buying a house, why not deal with the landowner directly and pay the purchase price in installments?

[@zahrahusain5965]

Because people react differently to transactions like this and they may not abide by contracts or agreements and court systems will be flooded with such cases. With banks you cannot escape though 😅

[@trailblazer7108]

While I have a lot of respect for the Sayed, I respectfully disagree with his analysis. Modern interest consists of several components: 1) Inflation. $10k loaned today and returned a year later is not $10k. Inflation means that their purchasing power with their 10k has been reduced. They can buy fewer goods, meaning there is an inherent cost upon the lender. 2) Opportunity cost of capital. Without earning a reasonable profit on a loan, there wouldn’t be a market for loans. All funds would be invested, rather than loaned. The impact is that when someone needs to borrow money for say an operation, there would be no “liquidity” in debt markets, or in simple terms, availability of loans. While your uncle may help you, what if he and your neighbors cannot afford to help you? 3) Risk premium. When I loan $10k, the borrower gets $10k, but the lender gets nothing but a promise (or hope) of repayment. Those with a high probability of repayment have a lower interest rate because they represent less risk of repayment. What is this risk premium typically used for? It’s used to pay for an insurance policy in the event of a default, which comes at a cost. Again, if there is a risk of non repayment and no recourse, liquidity in debt markets would dry up. Recall in 2010, debt markets dried up because the insurance companies couldn’t be trusted to cover defaults, and this resulted in the “credit crunch” where debt markets dried up (nobody was willing to provide loans). So respectfully, there’s little financial literacy among our scholars if they perceive these things in a black and white fashion of greedy rich people oppressing the poor. Interest is absolutely necessary as demonstrated above. Because of institutional debt markets, people can take loans for operations, purchase cars, without needing to engage loan sharks that beat you up if you fail to repay them. Interest is absolutely necessary for healthy and safe functioning of our society.

[@786buzzy]

Then you’re going against Islam. Simple.

[@Ace-t4p]

There is absolutely no need for banks to charge interest, if they didn't government will govern banks but it obviously isn't that way, Mr big words

[@trailblazer7108]

@@Ace-t4ptake a macro economics class or two, and you’ll understand what I’m saying.

[@roberthannah7983]

I totally agree with your reply. Modern interest is not oppressive riba from the time of the prophet.

[@roberthannah7983]

Riba was the exploitive redoubling of unpaid debt of poor debtors at the time of the prophet (riba al jahiliyya). Modern interest is not riba. Riba is more like loan sharking and predatory lending of finance companies exploiting the poor today. Christianity and Judahism have changed their views on interest since the mediaeval period with better understanding of modern finance and economics. Islam should do the same. The work around (buy the house from the bank at a high price) is a joke. Even a do-do like me can see that this is the equivalent of interest. You are paying the bank for using their money, and thats ok either way.