Discouragement of Interest System
Question:
Aslamu Alakium
Dear Brother I have studied your articles regarding interest and extracted one thing that Islam does not encourage interest system at all, then to have loans on interest and to pay interest will not support this.
If we all as a nation decide not to take any loans etc on interest then definitely it will eradicate this system from the country.and we can start this process on individual basis rather to wait for state's action and strategy. And you also said that payers of interest are the victims but what kind of victims these who are enjoying loans for the luxuries of life like cars,business etc.
Answer:
Assalamu Alaykum,
As one who is not totally unfamiliar with the global economic system I do not think that I can fully agree with you when you suggest that if people in a country, all decide not to take any loans, etc. then definitely interest will be eradicated in that country.
However please consider the above as a side note. This is of course not a website on economy. I answer your question with the assumption that what you are saying is correct:
I think if a person decides not to take loans and encourage others to do the same in an attempt to eliminate interest from his country then this is indeed a praise worthy deed, and if done with correct intentions then insha’Allah God will reward him as well.
The question however is not about what is the better or wiser option. The question is, whether Islam has prohibited paying interest. As I explained in my previous answers in detail, we do not have any concrete evidences in the Qur’an and established Sunnah and not even in hadith (when looked at in the light of the first two sources) to suggest such prohibition. In the lack of such an instruction, as a student of Islam, I am not allowed to label paying interest as haram.
You wrote: “what kind of victims (are) these who are enjoying loans for the luxuries of life like cars, business, etc”
It does not matter whether the person is wealthy or not, whether the person taking loan for luxuries or not, the fact remains that, when interest is in the form of usury (i.e. it results in exploiting the borrower), the borrower is oppressed because he has to pay unjust money.
Second, the number of people who have to take loan just to cover their essential needs is significant. These are the most oppressed victims of interest based system.
Third, I do not agree that getting cars and having business are necessarily among the luxuries of life. Yes there are many who get more than what they really need, but for many people, having a car to travel with and a business to feed the family are among the essentials of life and not the luxuries.
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Related Topics:
- Paying Interest for a Loan (Followup: Hadith on Cursing Those Involved)
- Why Paying Interest Is Not Haram?
---------
December 2013
Revised 2016
Aslamu Alakium
Dear Brother I have studied your articles regarding interest and extracted one thing that Islam does not encourage interest system at all, then to have loans on interest and to pay interest will not support this.
If we all as a nation decide not to take any loans etc on interest then definitely it will eradicate this system from the country.and we can start this process on individual basis rather to wait for state's action and strategy. And you also said that payers of interest are the victims but what kind of victims these who are enjoying loans for the luxuries of life like cars,business etc.
Answer:
Assalamu Alaykum,
As one who is not totally unfamiliar with the global economic system I do not think that I can fully agree with you when you suggest that if people in a country, all decide not to take any loans, etc. then definitely interest will be eradicated in that country.
However please consider the above as a side note. This is of course not a website on economy. I answer your question with the assumption that what you are saying is correct:
I think if a person decides not to take loans and encourage others to do the same in an attempt to eliminate interest from his country then this is indeed a praise worthy deed, and if done with correct intentions then insha’Allah God will reward him as well.
The question however is not about what is the better or wiser option. The question is, whether Islam has prohibited paying interest. As I explained in my previous answers in detail, we do not have any concrete evidences in the Qur’an and established Sunnah and not even in hadith (when looked at in the light of the first two sources) to suggest such prohibition. In the lack of such an instruction, as a student of Islam, I am not allowed to label paying interest as haram.
You wrote: “what kind of victims (are) these who are enjoying loans for the luxuries of life like cars, business, etc”
It does not matter whether the person is wealthy or not, whether the person taking loan for luxuries or not, the fact remains that, when interest is in the form of usury (i.e. it results in exploiting the borrower), the borrower is oppressed because he has to pay unjust money.
Second, the number of people who have to take loan just to cover their essential needs is significant. These are the most oppressed victims of interest based system.
Third, I do not agree that getting cars and having business are necessarily among the luxuries of life. Yes there are many who get more than what they really need, but for many people, having a car to travel with and a business to feed the family are among the essentials of life and not the luxuries.
---------
Related Topics:
- Paying Interest for a Loan (Followup: Hadith on Cursing Those Involved)
- Why Paying Interest Is Not Haram?
---------
December 2013
Revised 2016
