إن الحمد لله نحمده ونستعينه و نستغفره ونتوكله إليه ، ونعوز بالله من شرور أنفسنا و سيئات أعمالنا ، من يهده الله فلا مضل له و من يضلل فلا هادي له ، وأشهد أن لا إله إلا الله وحده لا شريك له ، وأشهد أنّ محمد عبده و رسوله ، و صلي الله على سيدنا محمد و على آله و آصحابه و سلم - أما بعد:

Indeed all praises are due to Allah, we praise Him, we seek His help, we ask for His forgiveness, and we rely solely on Him. We seek His refuge from the evil in our souls and from our wicked deeds. Whoever Allah guides, no one can misguide. And whomever Allah misguides, no one can guide. I bear witness that there is no one worthy of worship except Allah, He is One, with no partners, and I testify that Mohammad (pbuh)  is His Messenger and His slave. 

Allah swt has outlawed “riba” and the Prophet pbuh explained to us what is “riba”. So, we do not need the dictionary of this filthy man to translate Arabic to us. Good that in Urdu we have word “sood” (سود) so this filthy man couldn’t fool any one in urdu.. so he is trying his sick mind to twist English.

 The problem with these knuckle heads can’t understand Shariah. It is about ta’at (obedience) to Allah swt and his Messenger.  So, when we hear an order of Allah swt or His Messenger, we obey it without any hesitation in heart, as it says “we hear and we obey”, and we do not find any excuses.

24:51 “The only statement of the [true] believers when they are called to Allah and His Messenger to judge between them is that they say, "We hear and we obey.” And those are the successful”.

People with such ideas has little shayateen in his brain obstructing his view, so can’t get over his prejudice against the Deen of Allah.

  • Allah swt allowed us to eat buffalo meat, but prohibited to eat pork meat… what’s the difference, both are meat? But we stopped from eating pork only because Allah swt ordered us to do so, not that we are searching for some health benefit in it.
  • Allah swt ordered us not to have sex with woman without marriage… what’s the harm, they all doing it here?, but we stopped from it because Allah swt ordered us.
  • Allah swt ordered us not to drink alcohol… what’s the harm, they don’t sleep without it?, but we stopped from it because Allah swt ordered us.
  • Allah swt ordered us pray fajr.. what’s the point to wake up on fajr, why can’t we do it later?.. but we do it because Allah swt ordered us.
  • Allah swt ordered us to face makkah to pray.. whats the deal there when Allah is everywhere?... but we do it because Allah swt ordered us.

People with such ideas has sickness in his heart against Allah and his Deen, and Allah aggravates their sickness of their heart. They are the looser and Allah swt has boiled the hell which is awaiting their arrival  and they will live in hell forever.

2:10 “In their hearts is disease, so Allah has increased their disease; and for them is a painful punishment because they [habitually] used to lie”.

Allah swt asked us to stopped from “riba”… whats the harm?. But we stopped from it because Allah swt ordered us to do so.

The word “riba” (ربع) is from three letter Arabic word “ra” “ba” “wa” (ر ب و) which mean to increase, to grow, to exceed, to be more. “riba” means which is increased.

It Quranic term, it means the increase in money. Hence, Allah swt explained it himself:

Quran
يَا أَيُّهَا الَّذِينَ آمَنُواْ اتَّقُواْ اللّهَ وَذَرُواْ مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ
2:278 “O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers”.

Meaning give up whatever exceed the actual money that you lent. The word “riba” here means interest or whatever was in access to original. Or in another place,  

Quran
وَمَا آتَيْتُم مِّن رِّبًا لِّيَرْبُوَ فِي أَمْوَالِ النَّاسِ فَلَا يَرْبُو عِندَ اللَّهِ
30:39 “And whatever you give for interest to increase within the wealth of people will not increase with Allah”

So the word “yarbu” means “increase” (will not increase with Allah).

Hence, these verses proofs that whatever is in exceed to original amount is considered “riba”.

However, Quran did not did declare every excess as “riba” or haram because excess is also in trade. Quran only made haram a “riba” which is special type of increase. And at the time of Prophet it was well known and well understood. They used to practice it (riba) but they considered it halal as “baiya” trader. So Quran only declared it haram by calling it by its name “riba”, and people understood what Quran is referring to.

In hadith, it was explained what was practiced as “riba” at the time of Prophet. Qatada said that riba was this that one person sold something to other, but deferred the payment for a specific time. If the period passed and the man doesn’t return the money, then he will give him extra time to pay, but will increase the amount of money he owes.

Mujahid said, that riba was that one man will take loan, but will say if you give me this much more period (to pay back) I will return you this much extra.

And there number of such explanations.

The main difference between “Riba” (interest) and “baiya” (trade)

Trade is:

  • One party seller agrees to sell an item to buyer on a agreed price. Buyer pays the price and buys this item.
  • Seller either produced this item by doing labour, or he bought it from someone else by spending his money. In either case, he spent his money, time, and energy to produce this item, hence what he earns in return by selling it is his profit.

Riba in contrast is:

  • One man gives loan to another person based on condition that he will return the money with extra or in exceed to the loaned amount after certain period.
  • Here for loaned money he returned the money, and for the time period he is paid extra money.
  • This “extra” money that is paid is called “Riba”

From Ahmed, Muslim, Nisai, Maji, Abi Dawood. Ubida b. al-Simit reported Allah's Messenger pbuh as saying: “Gold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, and salt by salt, like for like and equal for equal, payment being made hand to hand. If these classes differ, then sell as you wish if payment is made hand to hand.”

Here the Prophet pbuh explained it in black and white. That if you give gold, then same quantity of gold should be returned. Any thing extra will be considered “riba”. Same for wheat, same for barley, same for dates. So, if Junaid give 1 date as loan to shakir, and if shakir returns 2 dates, then 2nd date is “riba” or interest.

So the rules are:

  • Same of same must be exactly equal.
  • But if it is not same for same (i.e. when classes differ) then it’s a trade. So, if gold given in exchange of dates, then it’s a trade.

There are other hadiths that explains it further, but will extend the discussions. The basic rules is what is above. If its “Same for Same” then “like for like” – nothing more, but it’s the two things that are exchanged are not same, then do whatever.

Now, after grasping the meaning of “riba”, read the verse from Quran Again:

Quran
يَا أَيُّهَا الَّذِينَ آمَنُواْ لاَ تَأْكُلُواْ الرِّبَا أَضْعَافًا مُّضَاعَفَةً وَاتَّقُواْ اللّهَ لَعَلَّكُمْ تُفْلِحُونَ
3:130 O you who believe! Eat not Riba doubled and multiplied, but fear Allah that you may be successful
  •  2:275 Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] – those are the companions of the Fire; they will abide eternally therein.
  • 2:276 Allah destroys interest and gives increase for charities. And Allah does not like every sinning disbeliever.
  • 2:277 Indeed, those who believe and do righteous deeds and establish prayer and give zakah will have their reward with their Lord, and there will be no fear concerning them, nor will they grieve.
  • 2:278 O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers.
  • 2:279 And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged.
  • 2:280 And if someone is in hardship, then [let there be] postponement until [a time of] ease. But if you give [from your right as] charity, then it is better for you, if you only knew.
  • 2:281 And fear a Day when you will be returned to Allah. Then every soul will be compensated for what it earned, and they will not be treated unjustly.

The real problem is underneath system, which these people can never understand.

Firstly, we must review the three prevailing economic systems:

  • Capitalism
  • Communism
  • Islamic System
CAPITALIST SYSTEMS HAS FOLLOWING TRAITS:
  • Person who earned the money is the sole owner of his money, and no one else has right over his money. He can spend it the way he feels likee
  • This kind of system create opportunity for wealth to be accumulated with few
  • It promote selfishness and accumulation of wealth
  • It create greed and willingness to earn more money, even when other suffers due to it. “Interest” is type of oppression and its pure product of greed.
COMMUNISM SYSTEMS HAS FOLLOWING TRAITS:
  • Opposite of above. All ownership is communal based. Individuals don’t own anything.
  • Whatever they earn will be paid to them as their compensation for their work.
  • This system is completely against the nature of human being. It completely eliminates competition and hardwork, and reduces the interest in people to achieve anything. It treat people as machine.
ISLAMIC SYSTEMS HAS FOLLOWING TRAITS:
  • Islamic system is really balance between the two and a middle path.
  • The individuals has right to own and earn more
  • They are allowed to spend their money. However, they are not the only one who decides how their money should be spent.
  • Islam discourages hoarding of money, and encourages spending money [not for shopping, but to help needy]. Spend in way of allah, on needy people. However, Allah swt say spend whatever is in excess of your own use, hence balancing the act of ‘spending everything’ or ‘spending nothing’. Spend whatever is in excess (2:219)
    • “and do good to parents, kinsfolk, orphans, Al-Masakin (the poor), the neighbour who is near of kin, the neighbour who is a stranger, the companion by your side, the wayfarer (you meet), and those (slaves) whom your right hands possess.” (4:36)
    • Compulsory zakat
    • Charity
    • Stopped from wasting money (12:29), don’t be miser nor extravagant (25:67)
  • Earning of money in ways that does not harm others or oppress others in society. So not to accumulate own money, but cutting throat of others.
  • Inheritance law, where just wife and children are not the only heirs.. but its includes other relatives and baitul maal.
  • Booty of war doesn’t hoard into few elite and governments.. but distributed. (Anfal:41)