34 islamic banking sources of shariah consumption or

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34 Islamic Banking
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Sources of Shariah: Consumption or Productive Loans Excessive Rates of Interest This argument overlooks the fact that the different verses of the Holy Qur'an relating to the same subject must be studied in combination with each other. No verse can be interpreted in isolation from the other relevant material available in other parts of the Holy Qur'an. Obviously, no verse can contradict another verse on the same subject. "O those who believe fear Allah and give up whatever remains of riba, if you are believers." *Al‐ Baqarah 2:278] The words "whatever remains of riba" in this verse indicate that every amount over and above the principal has to be given up. This point is further clarified in express terms by the following sentence: "And if you repent (from the practice of riba) then you are entitled to get back your principal." 35 Islamic Banking
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Sources of Shariah: Consumption or Productive Loans Excessive Rates of Interest Holy Prophet, Sall-Allahu alayhi wa sallam, made a general declaration of the prohibition of riba at the time of his last sermon on the occasion of his last Hajj. The words used by him in that sermon, as reported by Ibn Abi Hatim, were as follows: "Listen, every amount of interest that was due in Jahiliyya is now declared void for you in its entirety. You are entitled only to your principal whereby neither you wrong nor be wronged. And the first liability of interest declared to be void is the interest of Abbas ibn Abd‐ul‐Muttalib which is hereby declared void in its entirety." 36 Islamic Banking
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Sources of Shariah: Consumption or Productive Loans Excessive Rates of Interest The Holy Prophet, Sall-Allahu alayhi wa sallam, has said: "If the creditor received a goat as mortgage from the debtor, the creditor may use its milk to the extent he has spent in providing fodder to the goat. However, if the milk is more than the price of the fodder, the excess is riba.” Hammad b, Salamah in his Jame from Sayyidna Abu Hurairah, Radi-Allahu anhu "If one of you has advanced a loan and the debtor offer the creditor a bowl (of food), he should not accept it, or if the debtor offers him a ride of his animal (cattle) the debtor must not take the ride unless this type of gift has been a usual practice between them before advancing the loan". Sayyidna Anas Ibn Maalik, Radi-Allahu "Every loan that derives a benefit (to the creditor) is riba.” Sayyidna Ali, Radi- Allahu anhu 37 Islamic Banking
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Sources of Shariah: Consumption or Productive Loans Who to decide? "Allah has allowed the sale and has prohibited interest." *Al‐ Baqarah 2:275] The question whether these transactions have an element of injustice is not left to be decided by human reason alone, because the reason of different individuals may come up with different answers and no absolute conclusion of universal application may be arrived at on the basis of pure rational arguments. The correct principle, therefore, is that once a particular transaction is held by Allah to be haram, there is no room for disputing it on the basis of pure rational argumentation because Allah's knowledge and wisdom encompasses all those points which are not accessible to ordinary reason. 38 Islamic Banking
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34 Islamic Banking Sources of Shariah Consumption or...

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