18 islamic banking sources of shariah riba usury

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18 Islamic Banking
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Sources of Shariah Riba = Usury , literally ‘increase’ or ‘addition to anything’. 1. Riba Duyun - prohibits increases arising from debts (loans). a. Riba Qardh: where the increase (interest) on the principal sum of the loan is agreed upon at the point of contract. b. Riba Jahilliyah: this refers to the increase levied on the borrower for late repayment or failure to repay the loan. 19 Islamic Banking
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Sources of Shariah Riba = Usury, literally ‘increase’ or ‘addition to anything’. 2. Riba Buyu - prohibition of exchanges involving the following goods known as ribawi items if there is any increase because of difference in quantity, quality and/or time: gold for gold; silver for silver; wheat for wheat; barley for barley; dates for dates; and, salt for salt. a. Riba Fadhl: difference in weight, volume, quantity; b. Riba Nasiah: difference in time. 20 Islamic Banking
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Sources of Shariah Riba al-Qardh Riba al-Qardh, the usury of loans, involves a charge on a loan arising due to the passage of time, in other words a loan at interest. It arises where a borrower of another's wealth, in any form, enters into a contract to repay to that other person a pre-agreed amount in addition to the principal that was borrowed, in whatever manner this increase arises. 21 Islamic Banking
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Sources of Shariah Riba al-Buyu, Riba al-Fadhl, Riba al-Nasiah Riba al-Buyu may comprise either Riba al-Fadhl or Riba al-Nasiah. Riba al-Fadhl involves an exchange of unequal qualities or quantities of the same commodity simultaneously, and could therefore be described as the usury of surplus. Riba al-Nasiah involves the non simultaneous exchange of equal qualities and quantities of the same commodity and does not therefore involve a surplus but only a difference in the timing of exchange. 22 Islamic Banking
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Sources of Shariah Riba al-Buyu - ‘Usury of Surplus’. 'Gold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, and salt by salt - like for like, equal for equal, payment being made on the spot. If the species differ, sell as you wish provided that payment is made on the spot'. Hadith : Muslim Abu Sa'id said that Bilal brought to the Prophet some barni dates and when the Prophet asked him how the dates had been obtained, Bilal replied, 'I had some inferior dates so I sold two sas for a sa'. On this the Prophet said 'Ah the very essence of riba, the very essence of riba. Do not do so, but if you wish to buy, sell your dates in a separate transaction, then buy with the proceeds'. Hadith : Muslim 23 Islamic Banking
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Sources of Shariah: Definition of Riba Original Resources of Tafseer: Imam Abubakr Al-Jassas (D.380 AH) in his famous work Ahkamul Qur'an: "And the riba which was known to and practiced by the Arabs was that they used to advance loan in the form of Dirham (silver coin) or Dinar (gold coin) for a certain term with an agreed increase on the amount of the principal advanced.“ Imam Fakhruddin Al-Raazi has mentioned the practice of riba as:
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18 Islamic Banking Sources of Shariah Riba Usury literally...

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