Financial interest denotes the amount that a lender receives from a borrower at a fixed rate of interest. At the time of the revelation of the Holy Quran many forms of interest transactions were practiced. Of these one was that the vendor sold an article and fixed a time limit for the payment of the price, stipulating that if the buyer failed to pay within the specified period of time they would extend the time limit but increase the price of the article. Another was that a person loaned a sum of money to another person and stipulated that the borrower should return a specified amount in excess of the amount loaned within a given time limit. A third form of interest transaction was that the borrower and vendor agreed that the former would repay the loan within a certain limit at a fixed rate of interest, and that if they failed to do so within the limit the lender would extend the time limit but at the same time would increase the rate of interest. It is transactions such as these that the injunctions mentioned here apply.
Those who believe this fail to differentiate between the profit gained from lawful investment and financial interest. As a result of this confusion some argue that if profit on money invested in a business is lawful why should the profit made from a loan be deemed unlawful? They argue that instead of a person investing their wealth they loan it to somebody who in turn makes a profit out of it. In such circumstances why should the borrower not pay the lender a part of the profit? They fail to recognize that no business venture is immune from risk. No venture carries an absolute guarantee of profit. Therefore, it is not fair that the financier alone should be considered entitled to a profit at a fixed rate in all circumstances and should be protected against any chance of loss. It is not a part of justice that those who dedicate their resources are not guaranteed profit at any fixed rate whereas those who lend their wealth are fully secured against all risks of loss and are guaranteed profit at a fixed rate.
In a normal lawful transaction a buyer derives benefit from an item which they purchase from a seller. The seller receives compensation for the effort and time spent on making the item. In interest-related transactions on the other hand, exchange of benefits does not take place equitably. The interest receiving party receives a fixed amount as a payment for the loan they gave and thus their gain is secured. The other party can make use of the funds loaned but it may not always yield a profit. If such a person spends the borrowed funds on a need there will be no profit. Even if the funds are invested then one stands the chance of both making a profit or incurring a loss. Hence an interest-related transaction causes either a loss on one side and a profit on the other or an assured and fixed profit on one side and an uncertain profit on the other. Therefore, lawful trade is not equal to financial interest.
In addition, the burden of interest makes it extremely difficult for borrowers to repay the loan. They may even have to borrow from another source in order to pay off the original loan and interest. Because of the way interest works the sum outstanding against them often remains even after they have repaid the loan. This financial pressure can prevent people obtaining the necessities of life for themselves and their families. This stress can lead to many physical and mental problems.
Ultimately, in this type of system only the rich get richer while the poor get poorer.
Even though dealing with financial interest may outwardly seem that a person gains wealth but in reality it only causes an overall loss to them. This loss can take many forms. For example, it may lead them to losing good and lawful business dealings they could have obtained if they refrained from dealing with financial interest. Allah, the Exalted, may cause them to use their wealth in ways which do not please them. For example, they may encounter physical ailments which causes them to spend their precious unlawful wealth thereby failing to use it in ways pleasing to them. The overall loss has a spiritual aspect also. The more they deal with financial interest the greater their greed becomes meaning, their greed for worldly things is never satisfied which by definition makes them poor even if they possess much wealth. These people will go from one worldly issue to another throughout the day failing to achieve contentment as they lost the grace which accompanies lawful business and wealth. This may even push them towards gaining more unlawful wealth through financial interest and other means. The loss in the hereafter is more obvious. They will be left empty handed on the Day of Judgement as no good deed which is rooted in the unlawful, such as giving charity with unlawful wealth, is accepted by Allah, the Exalted. It does not take a scholar to determine where this person is likely to end up on Judgement Day.
There is a huge difference between lawful business transactions and interest-related transactions. The former plays a beneficial role in society whereas the latter leads to its decline. By its very nature interest breeds greed, selfishness, apathy and cruelty towards others. It leads to the worship of wealth and destroys compassion and unity with others. Thus it can ruin society from both an economic and a moral viewpoint.
Charity, on the other hand, is the outcome of generosity and compassion. Due to mutual co-operation and goodwill the society will develop positively which in turn benefits everyone. It is obvious that if there is a society whose individuals are selfish in their dealings with one another, in which the interests of the rich are directly opposed to the interests of the common people, that society does not rest on stable foundations. In such a society, instead of love and compassion there is bound to grow mutual spite and bitterness.
To conclude, when people fulfil their own needs and the needs of their dependents and then spend in charitable ways with their surplus wealth or take part in mutually lawful business ventures then the trade, industry, and agriculture in such a society will improve. The standard of living within the society will rise and production in it will be much higher than in societies where economic activity is constricted by financial interest.
Strengthening Faith, Independence & Religion of Ease Complete Set Free eBook & Backup Link: READ & READ
اردو کتاب: READ
Buku Melayu: READ
كتاب عربي: READ
বাংলা বই: READ
Libro Español: READ
Livre Français: READ
Libro Iitaliano: READ
Deutsches Buch: READ
Livro Português: READ
500+ FREE English Books & Audiobooks / اردو کتب / كتب عربية / Buku Melayu / বাংলা বই / Libros En Español / Livres En Français / Libri Italiani / Deutsche Bücher / Livros Portugueses:
https://shaykhpod.com/books/
Backup Sites for eBooks: https://shaykhpodbooks.wordpress.com/books/
https://shaykhpodbooks.wixsite.com/books
https://archive.org/details/@shaykhpod
YouTube: https://www.youtube.com/@ShaykhPod/playlists
AudioBooks, Blogs, Infographics & Podcasts: https://shaykhpod.com/
Anonymously Follow WhatsApp Channel for Daily Blogs, eBooks, Pics and Podcasts: FOLLOW
Subscribe to Receive Daily Blogs & Updates Via Email: https://shaykhpod.com/subscribe
#Allah #ShaykhPod #Islam #Quran #Hadith #ProphetMuhammad #Peace #Sunnah #Contentment
ShaykhPod 