IAIS Malaysia

Interest (riba) vs profit (ribh)

Literally, riba means “increase.” However, riba is commonly translated into English as “interest.” Riba is mentioned in the Qur’an in 30:39, 4:161, 3:130, 2:275-276, and 278. Most commentators agree that riba is a sum of money a lender claims from a borrower on top of the principal amount of a loan, as a reward for extending the loan, or for allowing more time for repayment. It does not matter whether the additional amount is small or large; even the smallest amount is still riba because it constitutes an “addition.”.......... Download the full article in pdf attachment (below)

Abdul Karim Abdullah

Abdul Karim Abdullah @ Leslie Terebessy is an Assistant Research Fellow at IAIS Malaysia.

Hikmah

God is Gentle and loves gentleness; He rewards gentleness with that which He does not reward harshness. (hadith)

Quotable Quotes

Without internal forms of solidarity and mutual trust, the market cannot completely fulfill its proper economic function - Pope Benedict XVI

Humour Without Malice

An old woman came to the Prophet (pbuh) and said: "O Messenger of Allah, pray to Allah that I will enter Paradise." He said jokingly, "O Mother of So-and-so, no old women will enter Paradise." The old woman went away crying, so the Prophet (pbuh) said, "Tell her that she will not enter Paradise as an old woman, for old women will enter Paradise in their prime youth." - Reported by al-Tirmidhi.

IAIS Malaysia 2008-2017 - All Rights Reserved.