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Madinat al-Muslimeen Islamic Message Board
| Is *all* interest haraam? |
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| Faiz |
| 05/16/02 at 17:15:21 |
| [slm] Can someone tell me good resources to understand the Islamic Financial system? I want answers to some questions: - Are all types of interest haraam? Or is there a distinction between 'usury' and 'interest'? - Is it ok to buy things in ‘easy installments’? Or even that is forbidden coz it involves paying interest in some form? - What investments can be considered safe from interest? (coz almost all kinds of investment involve interest at some level). thanks in advance, [wlm] |
| Re: Is *all* interest haraam? |
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| humble_muslim |
| 05/17/02 at 14:38:42 |
| [slm] Briefly : 1. All interest is considered haram. 2. If it's a no interest (0% APR) installment plan, then its ok, otherwise it's not. 3. I asked my Imam this once, who was doing a PHd in Economics. For company stocks, he says that : a) The compnay should not be maikng money from haram stuff e.g beer b) You need to look and see whether the compnay has more debt or more equity, known as the debt-equity ratio. If there is more equitythan debt, then it's ok to buy stock in that compnay. Hope this helps. |
| NS |
| Re: Is *all* interest haraam? |
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| Faiz |
| 05/17/02 at 17:28:47 |
| Jazak Allahu Khair for your answer!! i still have some doubts: - i am novice when it comes to finance and stocks et al, but wouldn't this equity to debt ratio vary? and i think almost all businesses borrow money from banks and investors, don't they? then how can one invest in them? - also, can one [i]work[/i] for such companies then? coz they do borrow money to do business. - and, how do things in Islamic countries (like Saudi Arabia) work? Do they follow a 100% Islamic banking system? thanks in advance. |
| Re: Is *all* interest haraam? |
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| jannah |
| 05/18/02 at 01:23:38 |
| There are a number of old threads on the old board on the subject of Islamic finance. Also a nice website to check out is here: http://www.islamiq.com/ |
| Re: Is *all* interest haraam? |
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| Faiz |
| 05/20/02 at 15:17:18 |
| Thanks a lot sister!! i will make it a practise to check the old msg board before posting anything, insha'Allah. :) |
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