Prohibition of Riba interest and its philosophy : what is the difference between Riba and rent

Fatawa Question

[Question one] : Asalamu Alaykum Br. Riba is Haram in Shari’ah. But I have heard certain people arguing that interest on money is like rent on one’s property. Their argument is that if rent on any property whether residential / commercial or industrial is Halal, how can interest be Haram ? They put this argument in support of both i.e. earning interest on a deposit and paying interest on a loan. Please guide me on this. Wasalam [Question two] : Dear Br. Monzer Assalamu Alaykum Wa Rahmatu Allahi Wa Barakatuh Jazakallah, for answering my previous question and clearing my doubts. I have read your opinion regarding Zakah on gold jewelry and I believe your opinion is that one (a lady generally) need not pay Zakah not only on her day to day jewelry but also if her overall jewelry does not exceed what is generally possessed by her peers. That means in most cases, all or most of her jewelry will not be subject to Zakah. I quote a Hadith here and I want your opinion on this issue (I.e. Zakah on jewelry) in the light of this Hadith : narrated Umm Salamah, Ummul Mu'minin : I used to wear gold ornaments. I asked : is that a treasure (Kanz), Apostle of Allah ? He replied : whatever reaches a quantity on which Zakah is payable is not a treasure (Kanz) when the Zakah is paid.---Sunan Abu Dawud, Kitab-al-Zakah, Hadith No 1559. Narrated Abdullah Ibn Abbas : when this verse was revealed : "And those who hoard gold and silver," the Muslims were grieved about it. Umar said : I shall dispel your care. He, therefore, went and said : Prophet of Allah, your companions were grieved by this verse. The apostle of Allah (peace be upon him) said : Allah has made Zakah obligatory simply to purify your remaining property, and He made inheritances obligatory that they might come to those who survive you. Umar then said : Allah is most great. He then said to him : let me inform you about the best a man hoards ; it is a virtuous woman who pleases him when he looks at her, obeys him when he gives her a command, and guards his interests when he is away from her. Wasalam [Question three] : Dear Br. Monzer Assalamu Alaykum Wa Rahmatu Allahi Wa Barakatuh Jazakallah. I highly appreciate your immediate response to my earlier question. I didn’t misquote you deliberately, but maybe I had understood it that way. Just I wanted one more clarification on this issue. You said ‘’ and 2) They must be in actual use not stored as a treasure.’’ Does actual use mean daily use ? Because ladies generally use some ornaments on a daily basis and some ornaments during certain specific times like some festival or some other special occasion ? Does ‘’storing in treasure’’ mean gold or gold jewelry being held as an investment or all gold / jewelry not in day today use ? Wasalam Tariq

Fatwa

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Publication Date

2011-07-28

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Wages
• Usury

No. of Pages

3

Data Type

Fatawa

Language

English

Record ID

BIM-729656

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