We have previously discussed some guidelines and rules regarding the commercial and financial transactions such as prohibiting dealing in some prohibited transactions. Amongst what we have reviewed in the previous episode is selling what is not in one’s possession for the Messenger of Allaah, peace and blessing be upon him, said to Hakeem ibn Hizaam, may Allaah be pleased with him: “Do not sell that which you do not have.”  Also, another type of prohibited trade is that called ‘Eenah, in which a seller sells a commodity on credit to a buyer and then buys it from him at the same time at a lower price. Also, this includes the transactions in which the sold items are not known. The sold item has to be known well for this is one of the conditions of the validity of selling and thus the commodity and price have to be known well. Prohibited transactions include selling the faulty product while hiding its fault for this implies fraud and deception. Prohibited also is the Najash transaction. Najash means raising the price of a commodity while one does not want to buy it. This implies also lying regarding the price and value of selling. It was narrated that the Prophet, peace and blessing be upon him, said: “…do not artificially inflate prices…” 

Amongst the forms of the other prohibited transaction is that a Muslim cancels the sale of his fellow Muslim for it was narrated that the Messenger of Allaah, peace and blessing be upon him, said: “You must not try to cancel the sales of one another.”

In this episode, we will review one of the important basic rules that Muslim individual should not be ignorant with because not knowing it may lead Muslim individual to do it and thus fall in fighting Allaah The Almighty which is trade transaction should not imply Riba (i.e. usury, interest, etc).

Riba is one of the greatest of major and most destructive sins and crimes for individual and society. Islam has emphasized its prohibition and dealing with it. All of its forms and types are one of the greatest major sins and crimes. Allaah The Almighty has declared war against those who deal with it and this is really sufficient; rather, this is the greatest evidence on prohibiting it and its great danger. Allaah The Almighty Says (what means): {O you who have believed, fear Allaah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allaah and His Messenger…} [Quran 2: 279]

Allaah The Almighty also Says (what means) pointing out the prohibition of Riba: {…But Allaah has permitted trade and has forbidden interest…} [Quran 2: 275] 

He, the Most Exalted, also says (what means): {O you who have believed, fear Allaah and give up what remains [due to you] of interest…} [Quran 2: 279]

It was narrated that ‘Abdullaah ibn Mas‘ood, may Allaah be pleased with him, said: “The Messenger of Allaah, peace and blessing be upon him, cursed the one who accepted usury, the one who paid it.” [Reported by Muslim]

In another narration reported by At-Tirmithi and Abu Daawood, the Prophet, peace and blessing be upon him: “Allaah cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it.”

It was narrated that the Messenger of Allaah, peace and blessing be upon him, said: “Avoid the seven (sins) that doom a person to Hell.” And mentioned among them: “…consuming Riba.”

Prohibiting Riba is one of the decisive matters in Islam that no Muslim who declared that Allaah is the only God and Islam is the only true religion and Muhammad is the prophet and messenger of Allaah should be ignorant with.

Riba is in six matters which the Messenger of Allaah, peace and blessing be upon him, has pointed out: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt, like for like, same for same, hand to hand. If any of these types are different, then sell however you like, so long as it is hand to hand.”

Selling the same types must meet two conditions:

Firstly, the amounts be the same.

Secondly, the exchange be made in the same meeting as the contract is made. This is the meaning of the statement of the Prophet, peace and blessing be upon him: “…so long as it is hand to hand.”

This means that if the types are the same and different, then there is no Ribaas long as the amounts differ; but rather, it will be in delay for the Prophet, peace and blessing be upon him, said: “…Then sell however you like, so long as it is hand to hand.”

Accordingly, if one sells for example a Saa‘ of wheat for two Saa‘ of barley, then this will be permissible if the exchange is made in the same meeting as the contract is made. At the end of this episode, we will review some forms of Riba such as:

1- Interest-based loans: for example if someone takes a hundred pounds from another as a loan to pay them back after a while two hundreds, whether the lender is an individual, organizations or the like.

2- Delaying paying off the debt for extra time in return for known interest: for example if the time of paying off the debt becomes due and the debtor is not able to pay off the debt and thus the lender gives him extra time in return for adding a known percentage i.e. if he (the debtor) wants one hundred from him, then he will delay him for a year in return to pay him off one hundred and twenty and so on.

3- Selling currencies along with delaying receipt. Amongst the other types of Riba is the transaction of ‘Eenah that we have discussed previously.

We ask Allaah to suffice us with what He has permitted so that that we have no need of that which He has forbidden, and make me independent of means by His bounty so that we have no need of anyone besides Him for surely He, Exalted be He, is All-Hearing and Ever Responsive.  

Till we meet again, peace and blessings of Allaah be upon you.

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