Regarding riba

[Hawa]

:sl:

Lately I've been reading extensively on riba, so far I've come across two opinions, that the UK type student loans, based on inflation rates rather than actual increment on the original price loaned, is allowed. The majority however are of the opinion that it is still riba and therefore haram.

I've taken maintenance loans as I don't have any other source of income, but in all honesty I don't know just how 'necessary' it is for me :? (if absolutely necessary most of the Sheikhs say it is permitted to take such loans)

I am taking care of myself and my younger siblings...does this constitute necessity? I know an incredibly silly question to ask in here, I know for sure that I won't be able to afford the living costs if I abandon my studies and work instead...

I guess I just want to hear people's opinions as I'm at a loss..

[Dawud_uk]

assalaamu alaykum sister,

necessity in islam is danger of death or serious harm, not just i want a degree or need a car or house like most people get loans for.

so was your life in danger really if you didnt get the loan?
could you not feed your family? did you have other options you could have persued but didnt?

if so you need to make big tawbah and repent to Allah and insha'allah not make the same mistake again.

assalaamu alaykum,
Abu Abdullah

[Hawa]

:w:

Jazakallah akhi.

[islamirama]

wa'alaikum as'salaam,

necessity is something you need and can't do without. You probably can do without the loans and studies and work instead. But relistically speaking, how wise is that? You won't make enough to cover the expenses plus you will be worn down and then the duties of looking after the siblings as well and their uprbringing. Which is more beneficial in the long run? You can check with a scholar (islamqa.com) and see what they say, but i think if you can make it work where you can get a good education and a better job with more money so as to enable you to cover your expenses properly and not like a poor man and you can do that by being as much halaal as possible then you should do it.

You mentioned many says that is riba too, many who? people? people think many things even when they are not part of islam. Forget people and what they think, its better to check and see what the scholars think. If it is acceptable then continue if not then inshallah find an alternative path.

Also, you should recite sura wa'qiah every night as it prevents you from falling into proverty and takes care of your financial needs.

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[Dawud_uk]

wa'alaikum as'salaam,

necessity is something you need and can't do without. You probably can do without the loans and studies and work instead. But relistically speaking, how wise is that? You won't make enough to cover the expenses plus you will be worn down and then the duties of looking after the siblings as well and their uprbringing. Which is more beneficial in the long run? You can check with a scholar (islamqa.com) and see what they say, but i think if you can make it work where you can get a good education and a better job with more money so as to enable you to cover your expenses properly and not like a poor man and you can do that by being as much halaal as possible then you should do it.

You mentioned many says that is riba too, many who? people? people think many things even when they are not part of islam. Forget people and what they think, its better to check and see what the scholars think. If it is acceptable then continue if not then inshallah find an alternative path.

Also, you should recite sura wa'qiah every night as it prevents you from falling into proverty and takes care of your financial needs.

assalaamu alaykum,

you cannot just weigh up the pro's and con's as you see it and then decide not to follow the laws of Allah on this occassion because it might be in your greater interest in the longer run to do something else,

riba is forbidden, yes if your life was at risk maybe of starvation then yes it would be permissable but we are not talking about risk of death, only risk of poverty and that isnt good enough reason to use riba.

assalaamu alaykum,
Abu Abdullah

[Malaikah]

:sl:

Sis I in in a similar situation regarding student loans. However, I have only heard sheikhs say it is haram, but it seems that they are calling it haram based on a misunderstanding of how inflation rates work... can you provide me with more information about why other sheikhs say it is not riba?

[Hawa]

:sl:

Malaikah here's one opinion,

If a person demands his principal amount in real terms, that is if he demands the same purchasing power which he had initially lent, such adjustment shall not fall under the head of Riba, and would therefore, not be prohibited. It would be fully justified and allowed to make inflationary adjustments to the amount lent. Thus, if I have lent $100 at a time when 5 bags of "A" quality rice could be purchased by this amount, I shall be fully justified in demanding $115 if the price of 5 bags of the same quality of rice has risen to $115. Such an adjustment, as stated earlier, does not come under the folds of Riba.

On the other hand,

The student loans as explained by you is interest and not permissible.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Subhanallah I've been feeding myself and my family haram :cry: , I think sis that we shouldn't try and find loop holes, inflation rates are still interest based and riba is riba. Allah is the best of providers.

[islamirama]

:sl:

Malaikah here's one opinion,




On the other hand,



Subhanallah I've been feeding myself and my family haram :cry: , I think sis that we shouldn't try and find loop holes, inflation rates are still interest based and riba is riba. Allah is the best of providers.

I don't like taking answers from Desai, isn't he the one that just gives his verdict and nothing more? i recommend you go to www.islamqa.com and search for your answer there.

I don't know where you're from but in US you can get educational loans without having to pay riba. basically you have to pay the princple and the gov't pays the interest for you. After graduation, you have 6months grace period to pay those loans of then.

[Hawa]

I don't like taking answers from Desai, isn't he the one that just gives his verdict and nothing more? i recommend you go to www.islamqa.com and search for your answer there.

I don't know where you're from but in US you can get educational loans without having to pay riba. basically you have to pay the princple and the gov't pays the interest for you. After graduation, you have 6months grace period to pay those loans of then.

It's different in the UK, I found something in the website you gave me;

It is wajib that you repent for each loan involving interest you took. The Prophet (peace and blessings of Allah be upon him) cursed all involved in the interest, the recipient, the sponsor, and the one eating and the feeding it, as stated in the authentic hadith. The Prophet (peace and blessings of Allah be upon him) said, "The gold for the gold, the silver for the silver, wheat for wheat, barley for barley, date for date, salt for salt, similar for the like, and hand in hand. So whoever adds or seeks to add, then he has used riba. The recipient and the giver of the transaction are the same". (Reported by Muslim, #1584.)

On the authority of Jabir (may Allah be pleased with him) who said that the Messenger of Allah (peace and blessings of Allah be upon him) "cursed the one who consumes interest, the one giving it, the one bearing scroll, and the two witnesses to it". He said (peace and blessings of Allah be upon him), "they are all equal." (Muslim narrated it.)

If a Muslim wants to partake in a specific affair and he doesn't know it's ruling, then it is upon him to ask before he gets involved in it. Ignorance isn't an excuse for each and every situation. As far as the loans you borrowed, you are obligated to return the initial money borrowed only. If you are forced to pay riba, and that is the added amount with no way out, then we hope that you do your best in repenting to Allah to pardon you. We also hope that you remain consistent in your business and give sadaqa with what you are able to, in order to purify yourself and your wealth.

We ask Allah to enrich us with His halal and to avoid His haram.

[Malaikah]

Subhanallah I've been feeding myself and my family haram :cry: , I think sis that we shouldn't try and find loop holes, inflation rates are still interest based and riba is riba. Allah is the best of providers.

:sl:

I don't think this is about finding loop holes. If there is a difference of opinion about inflation rates being riba, then how is that a loop hole?

This isn't something trivial. Most Muslims families can not afford to pay upfront for their children's education. If this were indeed interest, it means that we have to tell all the Muslims who can't afford it they basically can't go to university and we are going to end up with an uneducated ummah, especially here in the West. Not that most people will listen anyway, they will still insist on paying the interest.

But if their is a difference of opinion, I think it is definitely worth looking into to see who valid it is, because if we don't the outcome could be tragic. Imagine if we have all these Muslims thinking that the loans are interest and paying it anyway? :uuh: That is a major sin...

Can you please tell me where you got the first answer from? The one that said it is not interest?

[Hawa]

:sl:

I don't think this is about finding loop holes. If there is a difference of opinion about inflation rates being riba, then how is that a loop hole?

This isn't something trivial. Most Muslims families can not afford to pay upfront for their children's education. If this were indeed interest, it means that we have to tell all the Muslims who can't afford it they basically can't go to university and we are going to end up with an uneducated ummah, especially here in the West. Not that most people will listen anyway, they will still insist on paying the interest.

But if their is a difference of opinion, I think it is definitely worth looking into to see who valid it is, because if we don't the outcome could be tragic. Imagine if we have all these Muslims thinking that the loans are interest and paying it anyway? :uuh: That is a major sin...

Can you please tell me where you got the first answer from? The one that said it is not interest?

:sl:
From here, http://www.understanding-islam.com/r...estion&qid=169

I'm not sure :? , I'de rather steer clear of doubtful matters.