Imam fakhruddin al raazi has mentioned the practice

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Imam Fakhruddin Al-Raazi has mentioned the practice of riba as: "As for the riba An-Nasiah, it was a transaction well-known and recognized in the days of Jahiliyya i.e. they used to give money with a condition that they will charge a particular amount monthly and the principal will remain due as it is. Then on the maturity date they demanded the debtor to pay the principal. If he could not pay, they would increase the term and the payable amount. So it was the riba practiced by the people of Jahiliyya." 24 Islamic Banking
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Sources of Shariah: Definition of Riba Original Resources of Tafseer: Ibn Jarir on the authority of Qatadah: "The Riba of Jahiliyya was a transaction whereby a person used to sell a commodity for a price payable at a future specific date, thereafter when the date of payment came and the buyer was not able to pay, the seller used to increase the amount due and give him more time.“ Al-Suyuti on the authority of Faryabi: "They used to purchase a commodity on the basis of deferred payment, then on the date of maturity the sellers used to increase the due amount and increase the time of payment.“ 25 Islamic Banking
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Sources of Shariah: Definition of Riba Transaction of Loan or Deferred Sale? It is clear from these quotations that the transaction in which the creditor used to charge an additional amount on the date of maturity was not a transaction of loan. Initially; it used to be a transaction of sale of a commodity on deferred payment basis in which the seller used to fix a higher price because of deferred payment, but when the buyer would not pay at the date of maturity, the seller used to keep on increasing the amount in exchange of additional time given to the buyer. "The non‐believers say that sale is very similar to Riba." *Al‐ Baqarah 2:275] Ibn Abi Hatim on the authority of Said ibn Jubair: "They used to say that it is all equal whether we increase the price in the beginning of the sale, or we increase it at the time of maturity. Both are equal. It is this objection which has been referred to in the verse by saying 'They say that the sale is very similar to Riba.‘” 26 Islamic Banking
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Sources of Shariah: Definition of Riba Transaction of Loan or Deferred Sale? If the correct meaning of Riba was not known to any body, Almighty Allah could not have made it incumbent on the Muslims to avoid it. A plain reading of the verses of Surah al-Baqarah reveals that Riba has been declared a very grave sin and its gravity is emphasized in an unparalleled manner when it was said that if the Muslims did not leave this practice, they should face a declaration of war from Allah and His Messenger. 27 Islamic Banking
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Sources of Shariah: Definition of Riba After the revelations of these verses, the Holy Prophet, Sall-Allahu alayhi wa sallam, prohibited some other transactions as well, which were not known previously as Riba. The Holy Prophet, Sall-Allahu alayhi wa sallam, felt that, given the
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Imam Fakhruddin Al Raazi has mentioned the practice of riba...

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