Proverbs 28
8 He who increases his wealth by exorbitant interest
amasses it for another, who will be kind to the poor
Some take the following literally to mean it is ok to collect interest.
Matthew 25
24"Then the man who had received the one talent came. 'Master,' he said, 'I knew that you are a hard man, harvesting where you have not sown and gathering where you have not scattered seed. 25So I was afraid and went out and hid your talent in the ground. See, here is what belongs to you.'
26"His master replied, 'You wicked, lazy servant! So you knew that I harvest where I have not sown and gather where I have not scattered seed? 27Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest.
The fact that there are no late payments is good but the sharia system could have it's own pitfalls if the lenders jack up the price of the item to be resold. It could end up costing more then it would have with interest tacked on.
"In an Islamic mortgage transaction, instead of loaning the buyer money to purchase the item, a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. However, the fact that it is profit cannot be made explicit and therefore there are no additional penalties for late payment."
8 He who increases his wealth by exorbitant interest
amasses it for another, who will be kind to the poor
Some take the following literally to mean it is ok to collect interest.
Matthew 25
24"Then the man who had received the one talent came. 'Master,' he said, 'I knew that you are a hard man, harvesting where you have not sown and gathering where you have not scattered seed. 25So I was afraid and went out and hid your talent in the ground. See, here is what belongs to you.'
26"His master replied, 'You wicked, lazy servant! So you knew that I harvest where I have not sown and gather where I have not scattered seed? 27Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest.
The fact that there are no late payments is good but the sharia system could have it's own pitfalls if the lenders jack up the price of the item to be resold. It could end up costing more then it would have with interest tacked on.
"In an Islamic mortgage transaction, instead of loaning the buyer money to purchase the item, a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. However, the fact that it is profit cannot be made explicit and therefore there are no additional penalties for late payment."