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FIQH 2/19

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Isam Rajab

Channel: Isam Rajab

Episode Notes

Episode Transcript

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Salam Alaikum Allah thank you for joining us and the class today inshallah we'll discuss very important issue of which is interest Riba.

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We started with the definition yesterday and today we will discuss this issue in details in sha Allah. Now, Reba, as we said, it is increments and it is prohibited in Islam It is one of the major sins The prophet SAW Selim said it then he was available because avoid the seven major sins and He mentioned one of them Riba

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and actually, it's very destructive sin. I mean, even the major sins, there are differences, like one of them is greater than the other. Riba is a great sin.

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The Prophet sallallahu Sallam in one Hadith narrated by Al Hakim.

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He said that a Reba is 36 degrees. The lowest of them, is like fornicating with your mother in Aqaba.

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Xena is a major sin, but to commit Zina with a relative, this is a greater sin, and to commit Zina with your own mother and to commit this sin in Al Qaeda.

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And

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this is not the greatest thing equivalent to Riba, this is the least level of Riba.

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Now and in the Quran, it is the only sin that Allah subhanaw taala threatened with punishment of war.

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Those who deal with interest, they will fight Allah Subhana Allah on the day of love. That's what the law says. If you don't give up interest, then

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be informed that

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there will be fight

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from Allah and His Messenger Barnabas or the Allahumma he said about this on the Day of Judgment, the man who deals with interest he will be given a sword and he will be told Be ready because you are going to fight Allah

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subhanho wa Taala so that's interest and actually before I forget you have assignment for today

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it is due on Friday inshallah.

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Friday it's due after tomorrow your assignment is to write one paper only one page about interest.

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Why it is haram? Answer this question on why do you think interest if Haram is haram I mean we are in society where they deal with interest is a pillar in this society. Why? Why we say it's haram and they cannot give it up. So I need you to write one page about interest.

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It is due Friday, inshallah evening

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by 9pm.

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Friday evening.

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Okay.

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We have two types of interest.

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Now, before I mentioned this in English, is there a difference between interest and usually

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linguistics linguistically?

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Now in practice, I believe there is because when they say when they tell you this is usually they mean a negative thing. But when they tell you this is interest, it's okay. Right.

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So, but in linguistically

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Is there any difference between usury and interest?

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No.

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Okay, then we will use we will alternate between interest or usual because for us as Muslims, it's the same.

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We have two types. Yes.

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They include profits.

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Usually interest they consider its profits, but that specific profit, the profit that you get from the increment of

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Okay, we have two types of interest. The first type of course, interest in Arabic means what and I want you to know the Arabic terms Riba because it's mentioned in the Quran you read it, so you need to know three but the first type of interest or Rebbe is rebel, rebel, rebel, rebel.

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Rebel Father, what do you mean by rebel for the rebel rebel means usually of superiority.

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I could not find a better word. I looked through many alternative words fillable in Arabic, when you have something better than another thing.

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So that's the usually of the superiority of that.

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thing over the other thing that's commodity that merchandise over the other one that's what we mean by usually of superiority

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quality, it's

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synonymous but

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I think this is better

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quality sometimes is not the the issue

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yeah and that there is a quality sometimes the make of it is the difference not the quality. It could be I mean as I told you, you just need to know the name and I will use from now on the Arabic term rebel father you know what I mean?

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A better type.

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The second type ribbon nesea

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ribbon nesea nesea is mentioned in the Quran in MnSCU Xia the term filco for in Surah Toba they are up in the jelly What did they do they used to change the dates of of the month.

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So they used to delay them that's where the word came from. NASA means delay.

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So how what do you mean by this in here in.

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In labor in

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NASA means when you delay the payment with increment

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it's taken from the linguistic meaning NASA means delayed

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usually of increment.

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So we have two types of usually

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rebel football and ribbon nesea

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we'll start with rebel

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rebel father

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the definition of rebel father maybe now it will be easier for you to break it down. But I need you to know also the first definition that we took yesterday

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rebelled to exchange gold, silver or food with the same type but different way

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due to the difference of quality.

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What do you mean by that?

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First of all,

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what are the types

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that are subject to Riba?

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We have three types.

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Food, gold and silver.

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Only these types there is rebar in them.

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So do we have rebar in coke?

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No. Why?

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It is food.

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It is beverage. Right? Right.

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Okay, that's why you need to know the types three types of food.

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Gold and Silver.

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Actually, it's excluded. It's not food.

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They differ in the Shafi they differ between food and drink.

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Yes, we're coming no questions now. I need you to know you knew now the definition. You knew that there are three types of Riba.

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Gold, silver and food. What do we mean by that? You have 10 grams of gold. 14 karat.

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You want to exchange it with

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21 carat of gold.

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Now which one is more expensive? 21 or 14 karat? 21. So if you have 10 grams of 14

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usually you will exchange it with how many grams of 21 karat eight

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or seven.

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Right?

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Because we said the 2021 is more expensive. So you will not

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trade it with the same grams. That's River. That's rebel father. That's rebel father. Why? Because you are exchanging the same type which is gold.

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You are exchanging gold with gold.

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Different

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weight because of the difference in quality. That is River.

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What should you do?

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You give 10 grams of gold. You get 10 grams of gold. Well, that's more expensive and this is cheap. In Islam, this is River.

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What do we do?

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pay for it.

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Sell

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The 14 karat you get the cash and then

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you get that

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that necklace that whatever you want that 10 grams of 21 character of God

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what's the evidence that this is forbidden? Why the bat is forbidden what's the evidence?

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Allah says interest is forbidden right? Does that include the gold

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general

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Salah Salem

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Yeah,

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he specified where that's what I'm looking for where?

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Hadith

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Okay, I have 40,000 howdy theory number could you get it for me? Where what's the evidence now you need to know the evidence why

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interest is haram. I mean what's the evidence that it is haram? This type what we talked about is haram.

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This is the Hadith.

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Don't tell me you write it because it's in an anvil hurry. I mean, it's famous Hadith Hadith about the summit. If you don't have it, you want to write it, that's fine write it down. But this is the essence of forbidding rebellion.

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This is the essence of forbidding the interest or the usury of quality usury of superiority whatever you want to call it. We will call it rebel from

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Look what the prophet SAW Selim said the selling of gold for gold is Riba is usually Now look here, this is interesting. Look at me. This is interesting Why? Allah says in the Quran, Allah Allah Allah.

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Allah made selling lawful. Here the prophets I still am telling you selling of gold for gold is unlawful. So that's the essence which means usually if you sell gold for gold, it is what interests so you have to be careful except.

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So in general, selling is halal or haram. In general, selling is halal. In general gold for gold is halal or haram Haram in general. Okay, you see the difference here? the selling of gold for gold is Riba is usually except if the exchange is from hand to hand, what do you mean by from hand to hand, though? Does my hand have to touch your hand? No. What does that mean?

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A job a couple. So I tell you I accept and you tell me I sell

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and you give me the the goal. And I tell you I'll give you the gold next month.

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Direct that's what I'm looking for direct immediate. That's what the prophet SAW said I meant by hand to hand immediate. Okay. And equal in amount available with that heavy ribbon in less than Viet Mifflin. That's what the prophet SAW Selim said it has to be equal 10 grams, you get 10 grams 15 1500 100

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and equal in amount and similarly,

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the selling of wheat for wheat is Riba similarly, selling of wheat. So now we have Riba we have gold. Now we have wheat.

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Selling of wheat for wheat is Riba unless it is from hand to hand and equal in amount.

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and selling

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of barley Shire, for barley is usually unless it is from hand to hand and equal in amount. And dates for dates is usually similarly dates for dates. Unless it is from hand to hand and equal in amount.

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How many types we have here?

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For actually the prophets I said, I mentioned how many types

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six. There are two types missing here.

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Silver, coarse gold and silver. What else?

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Salt.

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Salt.

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So we have wheat, barley, dates, salt. Why?

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Why did the prophets I send them say

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food for food is Reba.

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Yes.

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Those things are traded for value.

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So sometimes, yeah, not in Arabia, but sometimes I agree. What about value

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barley was not exchange.

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basic necessity of the ears.

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The general Watch out what you're seeing general is allowed, which means any type other than those of food is permissible to apples for a better Apple, bigger apple.

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Is that permissible or not?

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According to what you said it is permissible, right? Well, actually, it's a matter of it's an issue, debatable issue. But in the Shafi school of thought, of course, and that's the most accurate opinion, all types of food is Riba. As I said before, food, all types of food. They said, this is the eloquence of the messenger Sallam he mentioned salt, because salt is what is an essential part of your food.

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No, it's a compliment.

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Right? Some people they don't use salt at all.

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Yes or no?

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Yes. So it's not essential. what's essential? The buffet sized celebration?

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wheat wheat is essential.

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And barley for some people. What about dates? dates, is considered the type of what fruit so the buffet size lm gave you all types of food.

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Other scholars said no, the prophet size Salaam was just able to say simply all food, gold, silver and food. That's why some schools of thought they don't see two apples for Annapolis River. But in the Shafi school of thought

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they say any type of food is what

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Riba?

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Which means, can I tell you?

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I gave you

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my meal,

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which is two pounds of

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chicken steak for your meal, which is one pound of

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beans and shrimp.

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Is that permissible or not?

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permissible? No, it's not permissible. We just said it is food. Can you exchange food with different

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amount?

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No, you cannot.

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Is this understood or not?

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six types

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or three types? Three types in? In brief food. Silver and gold.

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Okay, like what?

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That's River.

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or different types? Yeah. Yeah, I'm sorry. Different types.

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Yeah, exactly. If you have two pounds of steak, for one pound of chicken.

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Is this permissible or not? Yes, it is. I said no, right. I'm sorry. I was wrong. Yeah. Why? Because they are different. But if I tell you two pounds of steak,

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I don't know what are the types of steak prime rib for one pound of steak of

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whatever, is this permissible? No.

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Two pounds of salt I idolized or whatever for one pound of salt extra crystal. So is this permissible? No.

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This is not permissible in all schools of thought.

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Is this clear?

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Another Hadith the prophet SAW Selim said

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do not sell gold for gold unless equal in weight. Nor silver for silver unless equalling weight.

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But you could sell gold for silver or silver for gold as you like.

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As You Like, if it was there is a continuation for this. If it was what

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hand for hand.

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Okay.

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Another example.

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I have

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a lunch

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steak with soy sauce with whatever your full or you're hungry. I'm full. I have this lunch until I'll give it to you.

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And you give me your

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Dinner, which will be shrimp

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is this permissible?

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It's not hand for hand this is not permissible.

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Okay.

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Now, we have two conditions to exchange these things.

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Otherwise it will be what Reba.

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If you want to exchange gold for gold, silver for silver or for food for food,

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it has to be equivalent in the amount

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This is the first condition, the second condition, it has to be immediate

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Now, another had if I did not mention it I forgot when the Prophet size alum

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sent a man to hiber and that man came to him with this very good date. So, the prophet SAW Selim told him that's a good type of dates is the dates of haber all like this one. The man said no or messenger of Allah, we have to sell two pounds of less quality dates to get one pound of this dates. What did the prophet SAW Selim said I know rebar that's the rebar that's the exact rebar don't do that. The prophet SAW Selim guided him to do what to sell the two pounds to get the money and then purchase

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purchase the

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the better one

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so these are the two conditions

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in exchanging these types.

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Gold for gold, it has to be the same.

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Weight same

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same wait at the same time. date for the same thing.

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Now

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is this permissible?

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I have a 16 inch DELL LAPTOP and I want to exchange it with

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Acer laptop AMD

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but it's smaller screen 10 inch

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wide Why?

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It has to be from the same type. Can I give you this and take yours?

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This is why

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you can't

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Can I or can't if I can? Why?

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The same thing What? It has to be a laptop. Can I give you this camera? Yeah, for $5,000.

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Why

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is this interest?

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It's not it's not interest.

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It's not is it gold? Is it silver? Otherwise most of the transactions are River.

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That's why I told you three types. You need to know three types.

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Is it another question? Is it permissible to exchange two Nissan Altima cars for one hammer? Three

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y 241

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it's not Reba. Okay. This is not River.

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Is this clear? You know now what is river and what is not river?

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Can you exchange two cell phones?

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That quality for one cell phone good quality.

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Can you exchange

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this laptop

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with $100

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for another laptop?

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Yes or no?

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Yes. Yes you can.

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car with money for another car.

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Okay,

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one pound of dates, less quality

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with $5 for half pound of dates, better quality

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is it river or not?

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one pound of less quality of dates with $5 for half pound of better quality of this

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you are exchanging one pound and money for

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another.

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Why? Why can't I?

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Yeah. So you are exchanging dates with dates with different

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with different weight or quantity? Yes.

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It has to be the same. Okay?

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Now what's the what's the reason behind the forbidden See?

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If you have good quality, you will manipulate the market. Right? And if you have bad quality, I mean no one will take from you. And it will it will leave cheaper and cheaper by this Islam guaranteed justice for everyone. Okay, Islam does not look only for the poor, or the rich. Islam looks for both. Islam tells you you sell it and then you purchase that thing. Many people don't conceive this. Regardless, it is forbidden. That's exactly what the messenger Salim said. It is Riba most of whom and unfortunately they do that. They go to the jeweler and they give him

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all gold.

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They exchange it for new gold for less amount. Like they enter with 150 grams and they leave with 100 grams. Is this permissible?

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I remember is Olivia there what happened to her goal?

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Okay.

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It's really important you need to teach people what what what should they do?

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Yes.

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Exactly. You take you take the money. Now what what they do? Usually you go to the merchant and he says Yes, okay, I will purchase it. You don't get the money. He purchased it he told you that the amount and then with that amount he calculates that's not helpful. You have to get the money

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okay, because the transaction did not happen yet.

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He would not sell it

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to you or purchase your old gold if he did not know that you will purchase a new gold. Many people do that. Right? I mean, why why should I purchase all gold? Unless you are purchasing from me? You go. So you need to finalize the transaction first. Yes.

00:28:13--> 00:28:14

Yes.

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Yes. Can you transfer this store credit to a money real money?

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Can you give it to another person and take from other person money? If you can then it's it's just like finalizing the transaction so it's okay.

00:28:40--> 00:28:48

Yes, but if this gift card is not transferable, not cannot be cashed, then no because it's the same.

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That means he did not sell you.

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He did not purchase from you. Unless he knows that he will. You will you will buy from him. Okay. Again, why? Why is this loop I mean many many women when you tell them they say why I have to take the money and then it's the same. Isn't it the same? What do you think

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it's not the same. Now imagine if you cannot I mean if you cannot

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get the money, you have to exchange what will happen. The old gold will be much cheaper and the new gold will be much expensive.

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But when you sell your your old goal, you guarantee that you get money and you could leave you leave and you purchase from another person. Otherwise no one will purchase from you your old goal. They will take it from you because they know they could get gets a good deal from you. They could sell you the new goal.

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Okay.

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Is the matter of rebel football clear.

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Is it clear?

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Yes.

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Then you keep the questions after the Okay, ribbon nesea now this is the second type of rebar, which is rebar and nesea.

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ribbon nesea

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What's ribbon nesea?

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The increment of money based on time.

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Okay, Zia that a theremin makaveli agile. That's what we say in Arabic. Xia that the feminine female karbolyn agile.

00:30:33--> 00:30:34

Like what?

00:30:37--> 00:30:38

Hashem Hashim,

00:30:39--> 00:30:42

he wanted to purchase this cell phone.

00:30:45--> 00:30:52

So he gave, I told him, it's $150 he gave me $50. And he said, I will pay you 100 later on.

00:30:53--> 00:31:01

After one month, we agreed that after one month, you will pay me after one month, he did not pay me. So I tell him, the 100 became what?

00:31:02--> 00:31:13

120 or 125? This is what this is ribbon nesea. Why? Because I increase the price based on time. Is this permissible?

00:31:14--> 00:31:16

No. So we know the example.

00:31:21--> 00:31:21

This is forbidden.

00:31:27--> 00:31:29

That's sort of an axiom.

00:31:36--> 00:31:37

Another example,

00:31:38--> 00:31:39

which is

00:31:40--> 00:31:43

the practice one nowadays, the common one,

00:31:46--> 00:31:49

you get 50. And you pay back How much?

00:31:52--> 00:31:52

75.

00:31:53--> 00:32:00

If it's for 10 years, it becomes 8515 years, it becomes 100.

00:32:02--> 00:32:11

Right? This is what in general, it is long, it is called the prophet SAW, Selim said colocar in jarana fund for horiba. Any long

00:32:13--> 00:32:14

that

00:32:15--> 00:32:20

how to translate any loan that generates a benefit is river

00:32:22--> 00:32:29

colocar windjana fund for horiba. Why you pay along? Or you get a loan, you pay it back the same thing?

00:32:31--> 00:32:32

Again, why?

00:32:33--> 00:32:33

Why?

00:32:35--> 00:32:38

It's my money, and I helped you shouldn't you help me as well?

00:32:39--> 00:32:44

I mean, I paid you 50 so you should pay me 60? Why not? What do you think?

00:32:51--> 00:32:53

Hello? Yes?

00:32:56--> 00:32:56

You are?

00:32:59--> 00:33:02

No, why not? Why? perpetually? No, I'm

00:33:08--> 00:33:15

harder on the person to pay it back. What if it was a small amount? I'm not charging much 1%.

00:33:17--> 00:33:23

You take $100 you give it back? 101? I mean, if you could pay 100 you cannot pay 101.

00:33:24--> 00:33:26

Now, is it forbidden? Even if it's 1%?

00:33:29--> 00:33:31

Is it forbidden? Why? What's the evidence?

00:33:40--> 00:33:41

That's about alcohol.

00:33:42--> 00:33:45

You diverted this to two interest.

00:33:52--> 00:33:52

What?

00:33:57--> 00:34:05

That's not Hadith. That's definition. That's what scholars define the they said ribbon nesea is the increment

00:34:07--> 00:34:09

of money based on time.

00:34:11--> 00:34:13

What what are the cycles?

00:34:20--> 00:34:24

Okay, yeah, that's, that's correct. Yes, that's an evidence

00:34:27--> 00:34:32

and is it true or not? Is it increment or not? It is so if it is, yes.

00:34:36--> 00:34:55

You take advantage of people's need. Of course. Again, this is your job. I want you to find out these reasons. I know but I want you to find out the reasons why Riba is haram, especially here, many people ask you, all you Muslims, they think that you don't understand business and this is essential in a common economy. Actually, it's not essential or nothing. It's it's scrapped because

00:34:56--> 00:35:00

with interest, ask any any

00:35:00--> 00:35:14

Any person, businessman or see or whatever, tell him, give me the the perfect plan five years 10 years plan where you will eliminate poverty or how you will achieve justice, they cannot do that.

00:35:15--> 00:35:17

It's total injustice.

00:35:18--> 00:35:21

Islam tells you, you paid 50, you get back 50,

00:35:22--> 00:35:24

you get 50, you get back 50.

00:35:25--> 00:35:27

You don't give 50 and you get back

00:35:28--> 00:35:38

70 if you want to do that there is another way you become a partner. So you share in the loss and profit. Because again, if you take along

00:35:41--> 00:35:43

with interest, and you lost,

00:35:45--> 00:35:45

do I

00:35:46--> 00:35:48

share you in the loss?

00:35:50--> 00:35:57

Do you come and say, Look, I took from you 50. But I cannot pay you 60 back because I lost? I'll pay you only 40?

00:35:58--> 00:36:02

Of course not. I'll tell you I don't care. And that's exactly what the banks are doing.

00:36:03--> 00:36:42

Unfortunately, the banks, they could do lots of things. They could be the most powerful tool in building the society. But actually they are destroying Why? Because they only make money over money. They don't invest in projects. Yes, they may give like charities, one 10th of a percent percentile, maybe they give, but they don't really contribute. They don't partner with people. Unlike Islamic banks, you come to the bank, you don't have money, but you have a project, they are convinced that this is successful project, they are partners with you. This will come in companies because this is one type of companies.

00:36:44--> 00:36:54

You do your effort and they supply you with money. You share the profit and you share the loss. Because at the end you don't want to lose you will lose your job you lose your effort that you did.

00:36:56--> 00:37:05

That's why in Islam, it cares about both parties. Not only you not only them because if I have money, and I charge interest, why even I need to work.

00:37:10--> 00:37:12

Okay, so this is ribbon nesea

00:37:14--> 00:37:25

those are the two types of Riba that are forbidden. Now let's try to apply to our life like the most common question mortgage. Is it haram or Allah?

00:37:26--> 00:37:28

What is mortgage basically?

00:37:32--> 00:37:41

loan? Right? It's loan. Correct. You pay 50 you get 50,000 or 100,000 how much you pay back?

00:37:43--> 00:37:45

No, not 125 actually it's

00:37:46--> 00:37:46

adjustable.

00:37:48--> 00:37:52

Within 30 years if you calculate it if you take 100,000 I believe you will pay

00:37:53--> 00:38:00

you will pay interest 120,000 almost so you pay back $220,000 almost

00:38:01--> 00:38:13

it's adjustable rate 30 years that's exactly almost what you pay, you get 100,000 you pay back 220,000 Now let's say it's 150,000 is this haram or halal?

00:38:17--> 00:38:17

Why

00:38:19--> 00:38:20

mortgage

00:38:21--> 00:38:22

is it haram or halal?

00:38:25--> 00:38:27

haram why

00:38:33--> 00:38:39

no I need to build the house why you prevent me from going to the bank to get along to build my house.

00:38:41--> 00:38:44

I take a loan 50,000 and I pay it back 60,000

00:38:54--> 00:39:06

this is increment in the lawn and it is what it is haram it is Riba it is haram. So what about people who I mean how many people do you know they have mortgage

00:39:11--> 00:39:13

many people are doing it or few people or what?

00:39:18--> 00:39:21

What do you think? Not Muslims? I'm talking about Muslims now.

00:39:25--> 00:39:26

Like some other kind of

00:39:28--> 00:39:35

now why it is haram again, even those who say it is not haram they don't actually say it is not haram they say it is necessity.

00:39:37--> 00:39:43

No one argues it's Riba. It's Riba but they say in the time of necessity, you need to do it.

00:39:44--> 00:39:50

That's another issue. Actually, it's much easier to say it is Riba but I will do it then say it is hella.

00:39:51--> 00:39:56

When you commit that sin and you say this is sin, it's much easier than you say it's not the same.

00:39:58--> 00:39:59

Okay, anyway,

00:40:00--> 00:40:03

Then what's the difference? What about auto loan?

00:40:09--> 00:40:24

Why it's sophisticated? It's okay you go to the dealership. You want to purchase a car $30,000 but you don't have cash $30,000 you tell them I will pay you in four years.

00:40:25--> 00:40:27

The amount and they tell you it is 35,000

00:40:29--> 00:40:29

is this

00:40:31--> 00:40:32

halal or haram?

00:40:36--> 00:40:39

You go to a dealership you want to purchase a car

00:40:41--> 00:40:48

they tell you it is for $30,000 cash installment 35,000 or 40,000.

00:40:49--> 00:40:56

So you say I will purchase it installment I don't have cash. So it is 40,000

00:41:00--> 00:41:03

what? Online Okay, what what online says

00:41:06--> 00:41:07

that Sarah says it is haram.

00:41:08--> 00:41:12

Who agrees with the false sort of puzzle in this matter?

00:41:14--> 00:41:15

You agree?

00:41:17--> 00:41:18

Why it is haram?

00:41:19--> 00:41:20

It's alone.

00:41:21--> 00:41:24

Is it alone? What's the difference now?

00:41:26--> 00:41:37

Exactly. That's, that's the different thing about it. Yes, it is different amount. But this difference was based on time or the type of selling

00:41:38--> 00:41:39

the type of selling.

00:41:41--> 00:41:44

And he did not take along what happened you took what?

00:41:45--> 00:41:49

You took the car, took the car. Now can I tell you?

00:41:50--> 00:41:59

I will sell this pen for $10 and he told me oh I don't have $10 Give it to me and I'll pay you tomorrow. I'll tell you if you come tomorrow it will be 12 is this halal? or haram?

00:42:02--> 00:42:09

holla I need the money now. You tell me tomorrow Tomorrow I'll increase the price. Am I free to increase the price or not? Yes, I am.

00:42:10--> 00:42:13

Yes I am. See the difference bezerra

00:42:15--> 00:42:16

there is a problem go ahead.

00:42:20--> 00:42:21

Usually

00:42:22--> 00:42:27

what usually happens, dealer, the dealer is the owner of the car.

00:42:29--> 00:42:30

They will

00:42:34--> 00:42:38

give you the money so that they can find the car from them.

00:42:41--> 00:42:46

Okay, again, you go to a dealership, you want to purchase the car

00:42:47--> 00:42:52

for $30,000 but you don't have cash. They tell you you go to the bank

00:42:54--> 00:42:55

and you will take the loan.

00:42:56--> 00:43:05

Right. So what happens here? The bank sells the purchase of the car from the dealership and sells it to you right?

00:43:07--> 00:43:08

Yeah, that's Hello.

00:43:09--> 00:43:16

Yeah, can I go? I am a big businessman. I have $2 million. inshallah.

00:43:17--> 00:43:26

And I know you need the house. And that house It is $50,000 I go to that house and I purchase it for $60,000.

00:43:27--> 00:43:34

And I tell you go ahead. This is the house. You pay me $60,000 installment?

00:43:35--> 00:43:37

Is there is anything wrong with this?

00:43:39--> 00:43:39

No.

00:43:41--> 00:43:55

Actually, that's the Islamic solution. Now what's the solution? Many people and this is very important as student of knowledge. You cannot just tell people haram haram you need to provide them with alternative. What's the use if everything is haram remember the basis is it is valid.

00:43:57--> 00:44:00

All the transactions should be halal unless it is stated that it is haram.

00:44:02--> 00:44:13

The solution here you go to the bank, you tell the bank you purchase the house. Instead of giving me loan. You purchase the house and you resell the house for me.

00:44:15--> 00:44:18

But the banks don't do that Islamic banks that's what they do.

00:44:20--> 00:44:30

Here they tell you it's on your own. It's the money. That's what we care about our money. See when they sell when they purchase the house. Now they own the house

00:44:33--> 00:44:47

and then they resell it to you so you you did not really take a loan. What you took is a merchandise you took his property and this property. It's the property of the seller he is free to sell it for 100,000 200,000 300,000.

00:44:48--> 00:44:52

See, the solution is is easy but unfortunately many people

00:44:53--> 00:44:56

I don't blame the banks actually. The banks they want to make money.

00:44:59--> 00:45:00

I believe if

00:45:00--> 00:45:06

There is an Islamic company established here in United States it will be one of the richest companies because most Muslims will go there

00:45:09--> 00:45:10

many What?

00:45:15--> 00:45:26

Yeah, but they deal mostly with with mortgage only you can do you could do lots of things even even this I mean even laptops, anything cars

00:45:30--> 00:45:30

okay.

00:45:32--> 00:45:37

I hope you understood exactly the issue of interest. Is there any question?

00:45:38--> 00:45:42

Now we'll open the floor for questions about Reba. Do you have any questions? Yes.

00:46:10--> 00:46:16

I did not get it. I mean, he charges you for the charges that you are selling the goal.

00:46:18--> 00:46:19

I did not get it Really?

00:46:23--> 00:46:26

Your question Archie when you sell the gold? I mean,

00:46:29--> 00:46:37

each gram is like $15 worth. Okay, you have 10 grams. This is $150 you go and you tell him I want to sell this goal.

00:46:39--> 00:46:40

What does he say?

00:46:42--> 00:46:49

He says I will purchase it for 150. But there is a charge What? I don't understand what's the charge? What's the type of the charge?

00:46:53--> 00:46:55

Fine. Okay. And now the question

00:47:10--> 00:47:12

and then use the cash to buy five grams.

00:47:15--> 00:47:17

Did you make the trade correctly? The goal

00:47:19--> 00:47:19

was to

00:47:20--> 00:47:23

take one use cash in the middle.

00:47:24--> 00:47:26

Yes. So

00:47:28--> 00:47:40

So here I believe I told you I already answered this question. As I said, If you cannot sell your your low quality merchandise, that means it will be much cheaper.

00:47:42--> 00:47:49

If you will exchange it directly. And the high quality it will be much more expensive. That's why

00:47:50--> 00:47:58

Islam told you you sell it first. You make the trade first you sell this low quality you get the money and then you purchase whatever you want.

00:48:00--> 00:48:01

I think I already mentioned

00:48:03--> 00:48:08

and this is part of your homework, I believe you find out I mean you will you'll find interesting things by

00:48:14--> 00:48:17

hand to hand. I mean you cannot

00:48:18--> 00:48:24

give me 10 grams of gold and tell me I will take from you 50 grams of silver after one month

00:48:26--> 00:48:28

or 10 grams of gold.

00:48:30--> 00:48:33

After one month Why? It has to be done immediately.

00:48:34--> 00:48:37

Okay, that's the meaning of hand to hand.

00:48:38--> 00:48:38

Yes.

00:48:42--> 00:48:44

Okay. So with

00:48:50--> 00:48:54

that in four years, instead of paying 30,000 it's worth

00:48:55--> 00:48:55

40

00:49:01--> 00:49:02

you're allowed to do what?

00:49:06--> 00:49:21

Yeah, now now when the dealer owns the car, I mean, whatever price they say. You can purchase it for because if it's 30 or 40 he did not get money and pay extra money. What did he do?

00:49:22--> 00:49:29

The price was changed based on the your ability to pay back not to pay it back to purchase. Okay and this is permissible.

00:49:33--> 00:49:59

Is the dealer allowed to change the amount over time? No. If you change the amount over time then it becomes worth ribbon nesea However, sometimes they tell you there is a charge, like fixed charge, whether it is one month 10 months it is the same like one time or that's not like you are delayed one month so it is 3% you are delayed five months then it is 6% that's river still river.

00:50:00--> 00:50:01

And you cannot do that

00:50:06--> 00:50:28

is not about halaal. I'm really not sure I'm still studying because I hear the contradicting statements about it. So I'm not sure I hear that what they do is really interesting thing. They become like partners with you. So you are renting with them. You rent this house from them, they own the house. This is the first step they own the house.

00:50:29--> 00:50:59

Or actually they don't own the house, they go in partnership with you. They have very high amount of shares like 95%, you bought you pay down the 5%. And then the more you pay, the more share you have and the lesser they have. If that's the case, it is still okay. But I'm not sure I mean, I cannot give you a really an answer. I mean, now it is your job. You can find out if it's halal or haram. You apply the rules and you find it if it's halal or haram.

00:51:01--> 00:51:01

Yes.

00:51:07--> 00:51:23

Yes, increase in price increase in prices not Haram. I mean, the I'm free to sell this for 10 1520. And I'm free. Also, when you come to me and you tell me, I'll pay you. I'll pay you right now. It's not like when you tell me I'll pay you five payments.

00:51:24--> 00:51:32

And there is four months apart in every payment. I mean, it's not the same. So so it is permissible.

00:51:39--> 00:51:42

Are you allowed to make 100% profit? That's interesting question.

00:51:44--> 00:51:45

No.

00:51:46--> 00:51:50

Why? How about making 1,000% profit?

00:51:52--> 00:51:53

It is permissible.

00:51:55--> 00:51:56

What's there with us?

00:51:59--> 00:52:01

Very good. Nothing too prohibited.

00:52:06--> 00:52:16

And the time of the law one and the time of the law on a caravan came. There was a drought. There was I mean, very difficult situation in Medina.

00:52:17--> 00:52:22

And there is a caravan. We're still in session as we're still in session, please.

00:52:24--> 00:52:42

There is a caravan came for us man with all goods and all types of things. Merchants came to us man all day long. And they said we purchase everything you have. twice the price you paid. This is how much

00:52:43--> 00:52:44

200% profits?

00:52:46--> 00:52:55

He said no. They said three times. He said no. 300% five times 500%. He said no.

00:52:56--> 00:52:58

until they reached seven times

00:53:00--> 00:53:04

negotiating with a man of the alarm. Seven times 700%.

00:53:05--> 00:53:15

He said no. He said there is someone who paid me more. They said we just came and the caravan just came. He said it is free for the people. Allah paid me 10 times more.

00:53:16--> 00:53:21

They said if it was not permissible, he would not have said that and the merchants would not have negotiated with him.

00:53:22--> 00:53:25

You are allowed to make as much profit as you want.

00:53:28--> 00:53:29

Yes.

00:53:39--> 00:53:40

Yeah.

00:53:42--> 00:53:59

This Hadith colocar then jarana fonfara. But this is only one Hadith. There are many. in general. What is Reba, Reba is increment. So you get money and you pay money that's increment. So that's haram by the Quran by the book of Allah subhanho wa Taala Allah says do not eat up Riba.

00:54:01--> 00:54:33

Above and above, that's an evidence, the Hadith of the messenger Selim colocado every loan that generates benefit for whatever, actually this hadith does not pertain to money on I gave you alone $50,000 and I told you, I want only $50,000 but next day I come to you and I tell you, I need the right. Had it not been for the long you would not have given me a right. Is this permissible? No. This is considered Riba why because it's the benefit that you're getting by giving the lawn

00:54:36--> 00:54:39

so that's not exclusive for for the ribbon on

00:54:41--> 00:54:43

ribbon. nesea It's forbidden. There are many

00:54:45--> 00:54:46

evidences? Yes.

00:54:52--> 00:54:54

Yeah, you avoid it, you avoid everything.

00:54:57--> 00:54:59

That's the last question.

00:55:07--> 00:55:21

Who's asking this question? So where were you with us in the session because I said mortgage you are getting a loan. You are getting $100,000 and you're paying back $120,000

00:55:22--> 00:55:31

but installment you are purchasing commodity you are purchasing something property just like you're purchasing this laptop just like you're purchasing anything.

00:55:35--> 00:55:39

Okay, we will stop here inshallah, we'll have a break Santa Monica.