Is interest permissible in Islam?

Principles

Submitted by Muslim Investor on Tue, 2007/06/19 - 20:58

A blog post by Zafirah on Riba/Interest and is it permissible in Islam.

Interest is strictly forbidden.

Submitted by Visitor (not verified) on Fri, 2009/07/17 - 06:46.

Assalam,
As a Shari'ah lawywer myself, i have studied the Islamic Law in Business.

This is a citation: The Messenger of Allaah (peace and blessings of Allaah be upon him) cursed the one who consumes riba, the one who pays it, the one who writes it down and the two who witness it, and he said: “They are all the same.”

Do not take up loans on any cause. For home or Business.

Remember Allaah always test those whom he loves more.
If there's no opportunity now, there will be another one, better.
Inshaallaah, Allah will bless and guide us all.

Wassalam.

I am a lawyer as well,

Submitted by Visitor (not verified) on Tue, 2010/01/26 - 00:55.

I am a lawyer as well, although not an expert in Shariah law. It can be argued that Riba back in the 600's is different than the bank interest I pay and receive today. The value of money today fluctuates with inflation.

For example:

I borrow 40 rupees in the year 2000 when 40 rupees equaled one dollar. I repay the 40 rupees in 2010, when 80 rupees equals one dollar. By not paying the extra 40 rupees interest, I don't actually repay the lender what he is owed. In fact, I only repay HALF of what I borrow. I would HAVE to pay interest to repay the lender properly, which is my Islamic obligation.