Kind: captions
Language: en
for
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what Foreignul.
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Now let's go and dive in
so that we would understand the
different types of ribba
and alhamdulillah Islam is a religion of
ease and simplicity.
So you'll find this quite easy to
understand.
So sit back, relax
and let's try to learn.
There are types of ribba. The first type
is ribba on debts
and this refers to
ribba in debt contracts such as loans
and the purchases on credit. And this
type of ribba on debt
has two types.
One of them is
to increase
the debt
when not paid on time. And this is the
worst type of ribba. It is the ribba of
the time of pre-Islamic era of jahily.
And it's very easy. I give you a debt
you should pay off in a year time.
after one year I come to collect and you
say I apologize I don't have the money
can you give me some time and I say no
you have to pay today because this is
the contract we have but tell you what
due to your inability to pay
I'll increase the debt by 15%
and I'll give you another six months and
this is one of the major haram things of
the Jahia
era. And unfortunately, this is
prevalent and we can see a lot of it
especially in contracts where people
default for one reason or the other. The
most famous
word for it today in the west and
unfortunately even in Muslim countries
late payment fee
or late payment penalty.
This you find it everywhere.
So you lease a house
after one year you have to pay for the
coming year. You don't pay on time.
There's a penalty. This is ribba. You
pay for your mobile services. You pay
the utility bills.
And if you don't pay on time, there is a
time of expiry. If you don't pay after
the dead before the deadline, you pay a
penalty. This is the ribba of
and it's almost found everywhere.
Late penalty fee or pen late payment fee
or penalty. This is ribba. Clear cut.
No ambiguity.
Now the second type of reba on debts is
something that is agreed upon from the
very beginning.
I'm in need of 100k.
I need 100,000 ASAP
for any reason. To pay off my debts, to
pay off rent, to pay my installments for
the house, to pay my partnership in a
business.
and I say, "Well, I do have the money in
the bank, but
what would I benefit when I give you a h
100,000,
so I'm willing to give it to you with
one condition that if you pay me back in
a hund in a year time, you pay it
110,000?
This is a lot. This is haram. Well, this
is all what I've got. you're interested,
I'm more than happy to lend you. If not,
then um I apologize, but I don't have
anything else.
This is clearcut ribba.
And this kind of ribba is found in
mortgages,
is found in bank loans,
any type
because it's agreed upon. It's found on
bonds you buy from the government
because it's fixed. You're giving them
money and they're giving you return for
that money. Time deposit box says in
financial institutions
all are ribba. One would argue okay sheh
I have a friend and he told me invest
with me give me a h 100,000
and I give you every month for two years
3,000
cash and at the end of the three years
I'll give you your 100,000 back so this
is good investment sheh no this is not
an investment this is reeba
Sheh, but he's using the money to
use in his shop, in his business, in his
factory. This is ribba because the
origin, the capital
is guaranteed. You give him 100,000, he
gives it to you back in three years
time. You're not sharing any loss.
any
money fixed per month or per year
profit. This is ribba.
So it's a loan you had given him which
is 100,000 and he's giving you interest
every month. So what if the the interest
or the profit monthly basis is variable?
One month he gives me 2,000, one month
3,000. One month 1,000 but there's no
loss. This is agreed. Still it is ribba.
Whenever there's no loss then this is
ribba. Another form of clearcut ribba
and this is widely practiced in the
subcontinent and elsewhere.
Someone has a house and the house is
very beautiful,
very expensive.
To rent it, you have to pay at least
200,000
a year.
The owner of the house says, "You want
to live in this house? I'll rent it for
you for only 1,000."
Whoa.
The rent is usually 200,000 and you're
renting it for me for 1,000.
Of course, I'm willing to rent it. Yes,
but there's a catch. So, I say, "What?
In order to rent it for 1,000 a year,
you have to put a deposit of 10 million
and I'll guarantee you whenever you
leave, I'll give you the 10 million
back." Okay, I'm fine with that. I
withdraw the 10 million and I give it to
him as a deposit and I live in the house
paying only 1,000 a year. This is ribba.
Why? It's a deposit. The deposit is not
actual or real. The deposit is a loan.
The interest is living in his mansion
for free. A,000 compared to 200,000
that's peanuts. So I'm living in that
mansion for free as an interest over my
10 million loan. I live there for a
year, two, three, four, whatever I feel
of shifting or or leaving. I say I'm
leaving. He gives me my 10 million and I
leave. So reeba has to be
understood, comprehended,
digested so that we don't fall into it.
was
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