What is riba’? As the Islamic finance industry is growing exponentially for a several decades around the globe, the term of free-interest banking is always being touted as a key feature of Islamic banking which make it dissimilar from the conventional practice which dominantly practicing the Riba in its all transactions over the years. Riba …
WHAT IS RIBA? Riba is an Arabic term which means usury or oppression, or most commonly referred to as “interest” in the common language. In the modern business activity, riba or interest is mainly or predominantly used in the business model of banking institutions. Let say you wish to purchase your house worth 1 million …
WHY IS INTEREST HARAM? The important question whenever we speak about Islamic finance is, why is the element of interest, as applicable in the conventional banking model, prohibited, or why is it haram? Interest is haram because of various reasons, however I’ll just summarize it or I’ll just focus on 2 main points. Taking advantage …