Ah help O_o

[GuestFellow]

I need help. I have to deal with some claim forms next Wednesday and I have to calculate Statutory Interest.

I'm calculating interest that is going to be paid additional to the client original value of claim.

Is what I am doing Haraam? I never knew I was going to be dealing work that was associated with Riba until now

:hmm:

 

[aamirsaab]

As a student of Islamic finance and knowing what I know of the current Islamic banking industry, you don't have much of a choice.

The short reasoning is: the current global economic system is built upon interest. So even if you yourself don't accept or charge it, you will eventually hit the wall of interest. Even the islamic banks themselves use the LIBOR rate as a benchmark to set their prices (and a lot of the times, the price of their products is actually HIGHER than conventional anyways...).

Now some will argue very hard that what you're doing is completely haram. But as it stands right now, you as a muslim cannot use the excuse ''oh but it's interest''. We don't have that option at the minute because of how the financial systems work right now (granted, I'm not saying go charge and accept ALL interest you can find - rather, in some cases such as this one, you can't get around it. It's a similar case to muslims wishing to work in a non-islamic bank)

Also, calculating riba is not in and of itself haram. So overall from an economicists perspective, you're good to go.

 

[GuestFellow]

Thank you brother! Great advice.

I guess a mod can close this topic.

 

[Al Ansari]

Was there not a hadith that spoke of the believers being surrounded by interest whether he/she partakes in it or not. That they would not be able to remain 100% free from it? I could not locate it.