[QUOTE="RationalAtheist"][QUOTE="GabuEx"]
What's to explain? Islam says that people should not take or give interest.
GabuEx
I don't think it does - that's what's to explain. I think there is a distinction between "Fa'eda" and "Reba" - usury, or excessive interest and "acceptable" interest. Obviously, Islamic financial agreements can and do involve ethical interest payments.
I thought you'd know better than to give ill-formed generalisations about what "Islam says".
Literally every source I can find except for that one says otherwise.
"Every loan in which it is stipulated that something extra must be paid back is haraam, with no difference of scholarly opinion. Ibn al-Mundhir said: [the scholars] are unanimously agreed that if the lender stipulates that the borrower must pay extra or give him a gift, and he lends him money on that basis, then accepting the extra payment is riba."
So, technically, what are the differences between buying a house from a Sharia bank and from a non-Sharia bank? You say you like the "no interest" stance from the Islamics, but don't you mind the "profit"?
"Islam prohibits the taking or giving of interest or riba, regardless of the purpose of the loan, or the rates at which interest is charged. 'Riba' includes the whole concept of effortless profit or earnings that comes without work or value added production."
GabuEx
It is rather baffling to me why the "risk" on an investment isn't considered worthy by this speaker for the Islamic Finance Council in Scotland, when the profit from a loan on a house is.
"Ribâ literally means increase, addition, expansion or growth. It is, however not every increase or growth which has been prohibited by Islam. Profit also leads to an increase in the principal amount, but it has not been prohibited. So what has been prohibited? The best person to answer this question is the Prophet himself, peace and blessings of God be on him. He prohibited the taking of even a small gift, service or favour as a condition for the loan. This answer of the Prophet equates ribâ with what is commonly understood to be interest. This meaning of ribâ has become reflected in the writings of all scholars in Muslim history."
GabuEx
The best person to answer it is probably the one who made it up, since its utterly incomprehensible and contradictory!
Have you seen this bank's home and motor finance pages? How is getting the bank to buy your car for more than it's worth any different to them loaning you the money?
"Anyone who deals with interest - gives interest or takes interest - he is waging a war with Almighty God Allah and with the messenger prophet."
GabuEx
I can see how this silly sentiment arrived in the Muslim doctrine. But I can't see how people are blindly accepting it while pretending they are doing something else that's far more worthy.
"The definition of Interest, the literal meaning of interest or Al-Riba as it is used in the arabic language means to excess or increase. In the Islamic terminology interest means effortless profit or that profit which comes free from compensation or that extra earning obtained that is free of exchange. Riba has been described as a loan with the condition that the borrower will return to the lender more than and better than the quantity borrowed. As muslims, our main concern when it comes to financial transactions is to avoid Riba in any of its forms, despite the fact that the basic foundation of the world economics and finance today is that of riba and dealing in usury."
Et cetera.
GabuEx
Oooh dear - Does that mean Islamics are against global economics? What about Fa'eda?
This place has an apr of 7.2 - not bad!
If that's what you like, I can accept that.
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