Things you should know about Riba
Riba - the prohibited act in Islam What is Riba? The literal meaning of Riba in Islamic banking terms refers broadly to concept of growth or increase i.e. Charging Interest or usury that include earning Interest or paying off the interest in any form. Riba' (Arabic: ربا ,الربا، الربٰوة ribā or al-ribā) can be roughly translated as "usury", or unjust, exploitative gains made in trade or business under Islamic law. The term "riba" has also been roughly translated as the pursuit of illegal, exploitative gains made in business or trade under Islamic law, akin to usury. Islam forbids riba, even at low interest rates, as both illegal and unethical or usurious. Islamic banking has provided several workarounds to accomodate financial transactions with charging explicit interest. There is also another form of riba, according to most Islamic jurists, which refers to the simultaneous exchange of goods of unequal quantities or qualities. Here, however, we will be referr...
