Rib’a - In light of Qur’an & Hadiths

Qur’an References

2 - Al-Baqarah - 275
3 - Aali Imran - 130
4 - An-Nisa - 161
30 - Ar-Rum - 39
- Another meaning is the gift given to someone with the intention of getting a more expensive gift in return—a common ancient practice.

Hadiths

Notes

Mind it: There’s no bank in Pakistan working without interest (سود) because State bank of Pakistan operates in terms of interest then this is not possible that the sub branches can work without it.

Important Terms

Leasing —> Halal in Islam ✅ Definition: A lease is a legal, binding contract outlining the terms under which one party agrees to rent property owned by another party

For example, build a house and put it on rent —> Jaiz | مکروہ
Lease Financing —> Haram in Islam ❌ Definition: Lease financing is a contractual agreement between the owner of the asset who grants the other party the right to use the asset in return for a periodic payment and the other party who is the user of such assets

For example, a bank buys a car for you of 1M and gives you an instalment of 5 years but the total price will be 1.5M after that.

About Point 2:

Dr. Israr Ahmed says its haram, as we are charging something above the actual price of it without any reason BUT according to him its as per the Fiq’h.
Also, this point has another side of it. The bank doesn’t ask you to pay them as their profit, they just put an X amount of percentage. If they put it this way i.e. 1M for the car, and we’ll get you the car but we’ll charge 1.2M or 2% of the total price, which will include our profit and services charges too. If both the parties agree then its fine.

⚠️ The critical point here is if leasing is being done based on “financial” cycle then its Haram!

Simplest Form | All Ulam’ah Agree on this

Getting money on behalf of money. For instance, you gave someone PKR 100 and he’ll give you PKR 10 every month. This PKR 10 is Interest.

Another thought is, some scholars debate about the term itself that Qur’an didn’t use the term ‘Sood سود’ it used the term “riba” and they are different in terms of their meanings.

Bottom line of this is that it depends on the situation in which you are dealing with. There’s a Fatwa’ah as well that goes like if your government is involve in Interest then it has nothing to do with an individual implementation just like our salaries are interest based because State bank of Pakistan is working in Interest.

Hence, you’ve to be careful about it yourself as this is one of the MAJOR sins in Islam and can’t be taken politely.

**Its quite confusing topic given the society and financial system we live in. Hence, the best shot is to follow the hadith of Prophet PBUH:

Leave that which makes you doubt for that which does not make you doubt. Jami-at-tirmidhi - 2518, Sunan-an-nasai - 5711
It serves as a universal rule: truth (sidq) brings tranquility, while falsehood or ambiguity (kidhb) brings unease

Another one:

Consult your heart. Righteousness is that about which the soul feels at ease and the heart feels tranquil. And wrongdoing is that which wavers in the soul and causes uneasiness in the chest, even though people have repeatedly given their legal opinion (fatwa) in its favor. An-nawawi - 40:27

So, given the circumstance that: The Prophet ﷺ said:

“A time will come upon the people when there will not be any one of them left but that he consumes interest (Riba); and if he does not consume it, its dust (or vapor/breath) will reach him.”

Ref: ..To be continued

Quran Notes

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Rib'a - In light of Qur'an & Hadiths