Usury

The Paradigm of Interest in Islam



Abstract

The paper undertakes the discussion about the prohibition of interest on lending money in Islam. First and foremost the paper describes the basic and general meaning of interest and the term that is used for interest in Islam. After this general discussion the paper shows why Islam prohibits interest on lending money. The paper also mentions few of the quotations from the Holy book Quran that ensure prevalence of interest in Islam is prohibited.

The Paradigm of Interest in Islam

Introduction

The world in which we live is full of different people. These different people possess different beliefs, values, norms and morals. These different conceptions and beliefs of different people also cause them to view different aspects from variegated perspectives. These different perspectives and beliefs are often caused by the religion, moral values and social systems. There are different religions and social values that one can find in this world. Islam is one of the fastest growing religions in this world. The aim and objective of this paper is to talk about one of the concept that is prevalent and believed to be correct in Islam. This concept is of interest on lending money. According to the morals and values of Islam charging interest to lend money is not an appropriate exercise. The following part of the paper discusses why Islam prohibits interest on lending money to someone.

Methodology

As it is mentioned above, that the paper would undertake the discussion on the basis of the literature review so, it is obvious that the methodology that would be used in this paper is exploratory research. Exploratory research chiefly provides qualitative data. It is not based on assumptions or preconceived ideas, the researcher uses when he has no prior information about a topic or very little. This method is flexible, unstructured and qualitative. Exploratory research is used for various purposes: to better define a problem, suggest hypotheses to be tested later, generate ideas for new products, gather feedback on a new concept first, protest a questionnaire or to determine the criteria involved in choosing a movie or a show.

Literature review

Islam, encouraging people to vigorous activity, encourages conduct investment activities in the field of trade:

"O ye who believe! It's good to vanity among themselves do not waste to spend it in commercial transactions”.

Also, Islam encourages conduct active international trade:

"And those who are seeking the Lord's blessings on different countries traveled ...”

But at the same time, Islam closes the path for anyone who wants to increase its capital by borrowing. The Quran puts harsh criticism of the Jews who practiced usury, despite its prohibition. And one of the last bestowed verses of Quran reads:

“O you who believe! Fear God and give up what is owed ??to you from pocket, if what you truly believe in Allah. If you do so you would not suffer from damages and injuries”.

So, the Quran forbids interest loan, regardless of the magnitude of interest. The Prophet Muhammad (peace be upon him), himself declaring war ...