Interest (riba) vs profit (ribh)Written by Abdul Karim Abdullah
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)
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Abdul Karim Abdullah @ Leslie Terebessy is an Assistant Research Fellow at IAIS Malaysia.