Certain Types of Usury and Interest

Certain Types of Usury and Interest

None can truly plead ignorance of the absolute prohibition of usury and interest in Quran as well as Hadeeth. Practice of usury has been called worse than having in incestuous relations with ones own mother. Arab and his Messenger may he be eternally blessed have likened it to declaration of war against Allah.

Here however we shall discuss only two aspects which would bring home the total futility of usury and which have become common due to general ig­norance.

If gold is bought for gold or silver for silver, then a deferment of payment by even a minutes is haram and is a form of usury. Also if there is an increase or decrease of even a grain or particle it is also haram.

In order to help people avoid such situations and escape every form of usury, the ulama have proposed many devices, which are convenient and easy and involve no loss of any sort. For instance if instan­taneous payment for gold or silver bought is not possible, the transaction should not be treated as buying and selling but as a loan; when the price is paid, the articles would be brought and then the trans­action should be regarded as sale and purchase, but regarding the rate of payment, it should be agreed upon that the rates of the previous date shall hold.

Alternatively, when one is buyingon account and not for cash, he should borrow the required sum from the seller and use it to pay for gold or silver. The loan can be redeemed later. This is indeed a simple and easy way to escape the chastisement for usury and interest.

Similarly when buying gold and silver, one should pay for gold in silver coins and for silver in gold coins. Now a days the coins are made of alloys, however can be easily used for this purpose but one must never buy gold or silver billion on account.

The same prohibition applies to laces etc. made of real gold or silver threads.

There are other transactions too which involve - unwillingly at times interest and usury. Details are given in Safai-e-Muainlat" by Ashraf Ali Thanvi, which should be consulted.