Prohibition Of Riba Interest
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Channel: Omar Suleiman
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So I want to learn over a quarter
of last year it ministry phonology mizunara Nana Haman hamdu Lillahi Rabbil alameen wa ala one Ilana body. Meanwhile, the arguments from attacking Allahumma salli wa sallim wa barik ala abogado suka Muhammad sallallahu alayhi wa sallam while he was trying to sell them to seem and kathira
first and foremost I want to
thank the sisters for having me man was pantalla blessing Mashallah, this is one of the most successful I think groups of learning that we have going on in the country right now, which is the Ignis sisters wing so I asked the last print ads but more about rockin and rollin to continue to allow you all to grow. And Lawson Camila which is pure sincerity element nafion, which has beneficial knowledge and the feminine sloty, which is righteous deeds. The sister said this will be a very beautiful lecture. It's not a beautiful lecture at all. It's actually a very scary lecture because we're talking about Riba and the prophets. I send them he said that there would come a time
where everyone would be touched by the dust of Riba where even if you try to avoid it completely, you'll still find that you will be touched by it. So I hope that it's it's something that we all take heat from. Because living in this country, which, in essence, the banking system of the United States is is completely based on interests completely based on Riba it's important for us to try to fulfill what Eliza gel says in the Quran, it's Appala has the power to interfere a lot as much as we can to try to avoid it. So I'm going to have a disclaimer from the very beginning of this lecture that you will not be able to completely 100% avoid Riba when that can now you can leave alone, Epson
Illa, Allah subhanaw taala does not burden a soul beyond its scope. Ironically, as the mama show County, Ohio law said, the verse Now you Kelly, for long enough son in law is only a few verses after the verses of interest. So in particular, I think that we can we find that we're able to run away from, from the crime of Xena as much as possible, but naturally, as times Go on,
we're afflicted by these things to some extent. So for example, on television, we might be watching television, unfortunately, the Zener of the eyes is looking. So you'll have people watching a woman that is half naked as a family together, and it's become something that's completely normal. So we have colossal anti to protect us. every single aspect of the major sins to an extent we are afflicted by it. Many times in our foods and our drinks, we might not realize that we're consuming some of hummus, we're consuming alcohol. And I'm not saying that, that we should become paranoid about our food, but at the same time, we live in a time where we even have to investigate that where
something that looks as innocent as a chocolate bar might have alcohol in it. So we find from that movie costs, which are with the prophets lie Selim called the seven major sins, we find that we are unfortunately tested with a little bit of each and every single one of them. But as far as the rubber is concerned, I would definitely say a rubber is the most underestimated of all of those sins. Now, first and foremost, I want to take a look at this last panel. It's Anna, before the I have ribbon Surah Al Baqarah, verse 275, Allah Subhana Allah says Allah Vina Yun Fiona and while a humble lady when the house Siwon Wallonia further home AS Roma Enderby him Allah, Allah him well
known, those who spend their wealth in a laws way by night and by day, secretly and publicly, they will have the reward with their Lord and no fear will will will there be concerning them, nor will they grieve? With the ayat of Riba? The very next ayah Allah Vina Karuna Riba, those who consume Riba, what we see in these in this sequence of seven eight is Allah subhanaw taala mentions a verse of sadhaka, a verse of Riba, a verse of sadhaka, a verse of Riba and the reason being is to show that a system can survive without Riba usually if you have this conversation with with an economist about Riba they would say the world cannot survive without interest, but actually Islamic systems
have proved to be more successful. The reason being is that Allah subhanaw taala encourages good goodwill, goodwill to this extent so you don't feel cornered and while home, several Anwar alanya and our lady wonder how, you know, day and night, meaning they're consistently engaged several Anwar alanya secretly and publicly, they're consistently engaged in giving sadaqa so that the welfare is being taken care of, because the person who gives some of us sees it as a burden on himself, he sees the money that comes to him as a burden on him and he has to take care of others. So people are not, are not placed in a situation where they have to be enslaved by loans where they have to be enslaved
by things of that sort. So we find an abusive I'll call the abuse of the great student of an Imam Abu hanifa. May Allah be pleased with them both. He wrote a book called Kitab and Hodge the
Book of taxes, we find Islamic finance did not just start as a response to Riba. Okay, Islamic finance is not reactionary Islamic Finance, define some of the most important concepts we have in finance today. So, for example, price ceilings and price floors, that the market that people in the market should not, you know that there should be a limit
to how much they can raise up the prices and how low they can go. So that both supply and demand, the suppliers and the consumers are being taken care of they're being looked out after the first person to write in regards to price ceilings and price floors was none other than shaken Islam, even taymiyah talking a whole lot. In London, Samia wrote in his much more lots of discussion on this topic. So we find our scholars have defined pure and good accounting practices pure and good financial practices. And so that's how we countered about before it starts by taking care of people so that people are not so that the student who wants to learn has people that are taking care of him
already out of goodwill, I'm loving the MOBOTIX Mahima law used to finance all of the students of knowledge around the world, he found that if anyone needs to learn, he takes care of them on a purely interest free loan. In fact, sometimes he would give from his account for them if they were if they met the requirements of his account. So that takes care of student loans we find as early as an
alum, Amazon cushie talking about the importance of sponsoring people who are looking to get married right so all of these issues are taken care of in an Islamic environment to the point that as we know the prophets lie some of them said there would come a time where there's a cat collectors would go out giving money and they would not find anyone who gives a cut to and we know this is a signing salon. And this happened one time before he saw his salon and what was that time? And who's
that there's a cat collector went even to the to the depths of Africa, all over the world looking for people to give us a cartoon could not find anyone does anyone know.
Omar Abdullah Abdul Aziz Rahim o Lazzara, no one was to be found that needed Zika. So in essence, a loss of hundreds Allah starts off introducing the topic of river and this way then after last palletizers alladhina Yoongi poonawalla home. Allah says Allah Dena yaku Luna Reba, Leia como una Illa Kamiya como la de at the hot bottle Jose upon amin, Allah. Allah says those who consume interest will not be able to stand on the Day of Judgment except as the one who stands who is being beaten by Stefan into insanity. This is how he will be raised. You know, when we are raised from our graves, a lot of times I says the one who is being raised, who consumed about he will be being
beaten to a point of insanity to a point of almost unconsciousness that he can be under home kalu in normal diet through Riba that is because they say trade is like interest. A layer is just like Riba, there is no difference between buying and selling and there's no difference between it about so in essence, what you will find is everyone who uses Riba within the community of believers justifies it by saying it's all the same thing. You know, this person is going from this door this person is going from that door and they are Mr. Reba. So last pantalla is saying that they that they are doubling their senses in this dunya so Allah will delve their senses and by saying enamel Bay or Mr.
Reba, what a hell Allahu Bayer what Allah Riba and Allah subhanho wa Taala made permissible trade, but he forbade the bat. And then Allah says, and I'll just I'll move forward, young happy Allahu Riba or Yoruba Saba caught Allah destroys Riba and he increases in a sadhaka we'll talk about this inshallah voila, hula you have buku Luca fare in a theme and a last pantai does not love every singing disbeliever so it was fantastic compared to the to a river it was solid.
Then our last pentatonic again goes back to the believer in the levina ama, no army no sloty ha, what a farmer slaughter what was the home as your home and darabi him well, a homophone Allah him Allah. Allah switches back to the believer. Those who believe and do righteous deeds and establish the prayer and they gives the car will have the reward with their Lord and they won't have to fear. So the people that avoid a river in essence the people that do what they are commanded to do, and avoid a river loss. pantai says la hopefully, Malanga has known on the Day of Judgment. They have nothing to worry about, nor shall nor will they grieve than a loss of Hannah to Allah. After giving
the command to abandon Reba says for inlanta falou then will be Harbin Mina la hora su de This is a scary scary
Scary. Allah says if you don't do away with Reba instead of La hopefully la Humala has unknown you know, you sell your your your dunya you sell your Acura for something small from the dunya just to have a house just to have a car in this world and you destroy your skin I lost my entire says so on that day, instead of being like the people who avoided and don't have to have any fear and don't have to grieve, then we'll be helping in a lot he will be ready for a war a hell of a war and all out war with Allah and His Messenger sallallahu alayhi wa sallam, Abdullah bustle the Allahu anhu says that when the person who consumed about is brought forth on the Day of Judgment, he will be
beaten by the angels until he loses his senses and then he will be told to take his weapons Subhana Allah to take his weapons because he is at war with Allah. And there is no other person that will be in the situation except for acula Reba, the one who consumed the river and loved my bus and not even the katholische not even the disbeliever would be told would be addressed with such humiliation. Take your weapons and you are going to fight with Allah subhanho wa Taala. So we ask Allah to protect us also we see in the Hadith of the Prophet slice Allah
and the hadith of Jagger or the Allahu taala. And masala Islam says le and Allahu aqidah Riba May Allah curse the one who takes Riba one more keela who were Captiva, who was he the who, the one who borrows it, the one who witnesses it, and the one who writes it. And also last iclm said, We're home filled with reseller.
We're home filled wizardry seller, and they are on the scale all equal. The one who gives it the one who takes it, the one who witnesses it, the one who writes it home filled with the seller, am I speaking too fast for you? Play 100
because I have a lot of material to cover. So I feel under pressure,
in essence, so we go back when we introduce these things at Alibaba.
The reason why it's so underestimated is because of the following reasons. Number one, it does not have the disgusting connotations or consequences that the other movie caught that the other major sins do. Right? So when someone commits Zina, it creates a societal abomination when someone drinks and creates a societal abomination. But when someone deals with the river, it's something in money and it's something in transactions. And that's why it's very, very, very hard to truly look at it in the same light. But the Prophet sallallahu alayhi wa sallam.
He said in an authentic hadith narrated by Muslim Dyneema
he said one did have a didn't hum is like a penny. A dead ham is like a penny. It's the smallest coin in their currency one dyrham
of Riba eaten by men, is more severe than 36 acts of fornication with a person's Mother 36 acts of Zina with a person's mother one day at home, one penny of Riba will be able to be lost. So next, when you see something in your bank account $5 worth of liver muscle loss, I seldom said that's 500 times 36 times worse than Xena with a person's mother. It's a very serious
crime whenever you have to build as for the asylum, and as for the asylum, one of the great terbang Rahim Allah, he said, I would rather commit any one of them will be caught any one of the major sins. Before I would commit Riba before I would be guilty of Riba because of the severity of the warning from the Prophet sallallahu alayhi wa sallam, why is it so serious and why is it so condemned?
Number one, the entire economic crisis that we see today is because of Riba in essence, Riba creates this bubble, everybody is building on that. So this entire bubble is being created. Within a small amount of time, the bubble becomes poked, and everything collapses. And we see that the entire economy collapses. If you look at student loans, for example,
the amount of student loans in this country is over $280 billion $280 billion.
Within 11 years, it's expected to be over a trillion dollars, all of the people in depth in that regard. So in essence, it truly creates and Subhanallah the mom and Baba came alive. He says something very important. He says that when when the economy is bad, this is so true. He says it's true in modern times also says when people are being cheated with their money, they become more susceptible to drinking, and they become more susceptible to Zina. They become more susceptible to sin, to theft, to study, to murder. So in essence, when the economy collapses, all of that starts to increase and that's that's visible today in the country as we see today. When when the economy
collapses, people are more sensitive.
To all of the rest of the major sense,
also the Messenger of Allah so I sent him sudden I forgot to mention this authentic hadith in Bukhari.
He said, in the narration, the long narration of as I will cover that we came to a Red River like blood and I saw a man swimming in and another one on the riverbank had gathered many stones. So when the swimmer is in this river of blood and he starts swimming towards the man on the riverbank, when he gets to him, he opens his mouth and the other one throws a stone in his mouth and it sends him way back into the puddle of blood. And he keeps on doing this until the day of judgment. Some of the scholars they made they they they analyze this had they said because the one who was who was participating in river is drowning people in dunya and their debt. So likewise he would be made to
drown in a pool of blood until he reaches Allah subhana wa tada the linguistic meaning So to understand this also the linguistic meaning of the word Riba is very very similar to the cap. That about means increase. Riba means increase Zakah also means increase Okay, so they both mean increase. But the difference between the two last pantai says young hapa LaHood about well, you got to be socket Allah destroys the diva, as we see today, a lot destroys interest and he makes some that are profitable. The car has two meanings to it, the car has also the meaning of purity, purity and growth. So the cat means increase, but it also means purity.
As far as the liver is concerned, muscle loss I still am sudden authentic hadith
narrated by Eben Massoud or the Allahu anhu in sunon nomada was so last lesson I said no one takes the bat except that it will eventually lead him to poverty. Anyone who deals in Riba will eventually be led to poverty. So, this is true in the case of many situations that we witness around us eventually he will be led to poverty whereas the Prophet slicin um, said as far as all sadhaka is concerned, na na casa maloom in South Africa, money is never decreased by the giving of South Africa by the giving of charity. Okay, so we see
the growth of Salva cons aka the destruction of Riba.
So even though and this is talking about Indonesia, by the way, this isn't talking about necessarily an accurate inocula he's got to deal with something but in dunya, he also finds himself in that terrible situation. Now why is it that the dust of Riba has touched everyone today? Look at the Hadith of the prophets lie Selim aka the Riba. Generally, the banks are the ones who take Riba, right, the borrower's makakilo. Reba, usually that's us, that's everyone who goes to the bank to take, who are the witnesses? shall he do have? You have the lawyers, you have the notary publics, you have the accountants, you have all of the professions that document these things so documenting
of Riba then you have katiba, the clerk who even writes the receipts, okay? All of these people are involved in some way, shape or form with Reba. If you have a credit card, if you have a bank account, somehow you're going to be involved in Alibaba
and Subhan, Allah, Allah subhanaw taala has prohibited it's not that Allah subhanaw taala is only prohibited for Muslims. But a lot tells us in the Quran that all of the previous generations, all of the previous among were prohibited from Riba they were also prohibited from interest. So the test clear the legislation of Mussolini set up the legislation of esala, Islam, all of it contains the prohibition of labor. And in fact, what caused the anti semitism in Germany in the first place, was the fact that the Jews in Germany started to deal with it about they started to deal with interest, whereas the Catholic Church at that time still had prohibited it. It's not justifying the Holocaust
in any way. But this, this allowed for the rise in anti semitism in Germany. Why? Because one group of people took advantage at that point, or some of that group of people took advantage of the banking system in that regard. And then obviously, as we know, today, the Christians and the Jews, no religious leader, except for some of the Hasidic Jews, some of the Orthodox Jews say that it was hot on but it is hot on in their books also.
But still, with that we see obviously, Luba has found itself
incorporated in every single aspect of the financial system in the United States today. So inshallah Tada. I'll go through a brief overview, I'm sure we have a lot of questions. So I'll give time for questions more than more than speaking and I'll just generally cover the general concepts of Riba. And then inshallah Tada, we can have specific questions and if I can answer I'm telling you from now, there will be questions where I will say I don't know because there are very sensitive issues right now. In the discussion of what is financially a halal transaction, transaction, if I know the answer, I will say it if I don't, then I will. I will defer
First and foremost
Riba is of two types Riba is of two types there is interest which which includes a surplus okay a surplus
and there's interest which includes a delay
surplus and delay
so for example in an interest that includes a river that includes surplus Okay, it's when you exchange specific commodities specific things, one of them has more value than the other.
So to explain this muscle loss lie Salim said in an authentic hadith in Sahih, Muslim he said gold is to be paid for by gold, silver for silver, wheat by wheat, barley by barley
dates by dates and salt by salts again six categories gold is to be paid for by gold, silver for silver, wheat for wheat, barley for barley dates by dates and salt by salt was the last time said like for like an equal for equal to an equivalent so are they are everything is equal? And then he said salario salon payments should be made hand to hand so he's he's emphasizing fair trade here
well so last I said I'm said he who makes an addition to it or asks for an addition deals and ribba he makes an addition to that or asked for an addition deals and ribba and he sets a little ice I'm the receiver and the giver are equally guilty. So when someone says I'm not giving it but I'm just participating, I have no no, you are equally guilty when you are the giver or when you are the receiver.
Okay, so amongst these six categories, we can divide the scholars then divide the six categories into two there's that which is monetary, gold and silver,
golden silver and then there are four which are non perishable goods. non perishable goods, which are the barley the dates, the salt and the wheats. So it's two categories, there monetary items and non perishable goods. And essence what that means as far as an increase of that number one,
because there's there's important important concepts here. If a creditor loans just a simple example, if a creditor loans $200 to someone,
but accepts $195 in return, then that's okay. To take less, but to take more is not okay or to ask for more is not okay if if a person though gives you because sometimes, and our fear of it about there's something that's highlighted, which is if a person gives you $40, or gives you $39, okay, let's be more realistic gives you $39 or pays for something for $39. And when you go to pay them back, you take out your wallet, and you give them to 20 and you say Don't worry about it, that's fine inshallah, because it was not expected on behalf of the seller or the buyer. So that is a sign on your part, that's a sign you don't have to worry about that. Okay, so no one will be punished for
that. So case one within these categories, let's look at some various cases and shallots data to understand this and then we'll bring it to a more modern understanding in terms of how we deal with currency. So, the first the first thing, so, we said there are there are six different items and they are divided into two categories. So, the first case of trade of Adebayor is between something that is the same category and the same item, same category same item. So for example, exchanging gold for gold dollar for dollar did a hunt for Delhomme silver for silver when you exchange the same item for the same item. If you do that it has to meet the following conditions it has to be as the
exact same amount
so it has to be of the exact same amount if it's dealt with in gold the same weight okay now we deal with paper currency obviously same weight same amount.
Number two the other condition the exchange cannot be delayed or it would be considered about it has to be an immediate exchange it has to be an immediate exchange. Of course, this is not the case you know of a pure loan though of a pure loan where I will give you this and you pay me back later that this is an exchange between the two.
The exchange should be immediate between the contracting parties at the same time so they have to exchange it at the same time.
Okay, so this is if it's gold for gold. So let's say for example, you want to buy 20 pounds or not no one buys 2020 ounces of gold. For you know 20 ounces of a gold bracelet with 20 ounces of pure gold
You cannot say because this gold is crafted and it's nice. It's 20 ounces, I have to give you 25 ounces of gold, because it's gold and it's gold. Otherwise, it's rubber. So I mean, I know I'm just trying to give you a better understanding of this, this idea with the scholar is not like that. Okay, even though it's crafted gold, you can't say for example,
that, you know, your dollar bill is newer than my dollar bill. Okay, so you have a $20 bill that's from the new ones, I have the older $20 bill, so I'll give you $21 to give me that 20. That would be how long that would be how long
as far as the as far as but as far as the same category, but different item is concerned. So gold and silver are in one category. wheat, barley, dates and salt are in the other category,
you can exchange a different amounts between the two. So for example, someone could exchange a gold bracelet that is 20 ounces, for silver necklace that is 40 ounces. That's how large so you can exchange two different currencies. Okay, some people think currency exchanges Hold on, it's not on to exchange currencies to pay a little bit. So you can shop your currency in Islam, it's allowed to shop, the best rate for your currency. Okay, when you when you go to an airport sometimes and you want to see the rates, that's allowed to try to shop the best exchange rate, because none of them will be exact anyway. But but the conditions of that the exchange should not be delayed, and the
exchange should be immediate. Okay, so also, whenever you're exchanging silver for gold, or dollar for the hump, or dollar for whatever it is, it's going to be it has to be at the same time it has to be immediate. So you cannot place an order for for denims. For example, you cannot charge your credit card for $20. In exchange for 100. That comes later on. That's not allowed.
case three
different category, different items, different category, different items. So for example,
gold for dates, money for dates, so with money for dates, the quantity can be totally different. So you can charge someone can charge you whatever they want to for that box of dates. At the same time, it does not have to be an immediate exchange. So you can make an order for something and you can receive it later.
Okay, so that's the that's how we deal with the river in terms of exchange on commodities. Now, that is a very rare type of river that we have today. Right? We don't really see that much today. But the other type of river which is in delayed payments is what we see today. Okay, so the first so this is where we really need to pay attention. The first is Riba on a mature loan Riba on a loan. So for example,
a loan is given with a date. And if you past that date, you have to pay a late fee. This is the awesome this is the origin of Riba. This is how the Arabs used to practice that have a late fee. By the way, a late penalty elite charged is Riba according to the consensus of the scholars, there is no difference of opinion amongst them of that had on late fees, it is Riba period about that is what the Arabs used to say they used to say, give me some more time and I'll increase your return. Give me some more time and I'll increase your return. Okay, so an example of that. Also, in terms of our modern dealings, a charge card, not a credit card, a charge card, a charge card, you can, you know,
you can charge as much as you want. But if you can't pay it, then your your penalty will be increased more and more and more and more. But there is no set interest fee there, but it will continue to be increased.
As far as Linda is concerned on a deferred loan, on a deferred loan.
So there are loans, there are loans whose principal, which is the amount that's owed and interest are determined from the very start, okay, and you will be paying that loan over a certain amount of time.
So for example, a credit card, a mortgage, okay,
a student loan, if an unsubsidized student loan, whatever you know, you will be paying. So subsidized student loan falls into the first category, right a subsidized student loan where you have six months where you won't be charged interest if you over if you go over that six months, then you will have to pay interest. An unsubsidized loan is even worse, okay, where there's a set interest fee from the very beginning. So again, credit cards, mortgages, car loans, whatever it may be, where I will give you $200,000 you give me in return $250,000 whether we split this up over monthly installments, or whether you give it to me now, then, then it's still going to be
okay. Now, when you give someone alone The reason why this is so hard to show you the extent of condemnation here, I leave no Abby thought about the Allahu anhu said
Every loan which brings about benefit is river,
amount of money for him a whole lot. He wants loan someone some money. And he was passing through his his, his shade his trees, his garden, and his companions went and sat under the tree. And he didn't sit under the tree said, because if I benefit from his shade after I gave him that loan, it's sort of how Look how careful. The scholars were in that regard. The Salafi, Salim said, an authentic ad from NSW Malik, when one of you gives a loan and the borrower offers you a dish, he should not accept it. And if the borrower offers a ride on an animal, he should not ride unless the two of them have been accustomed to previously exchanging favors. So this is the Savior, this is this. You know,
one time I gave a loan,
I gave a loan to a brother and I invited him to my house and he said, I can't eat from you. I said, Why? He said, because you gave me a loan. I said, Well, I said, I'm sorry, if you were accustomed to this before, it's not a problem. So if you're friends, which is usually the case of giving loans to each other, if you're friends and you always give each other You always invite each other to each other's homes and things of that sort, then it's not about but but if there's an extra added benefit if all of a sudden the one who received the loan is saying you know, you can borrow my car for a day you can go to my vacation home for a day, and instead of just serving biryani he's serving coffee
and care now also with it then that's a problem. You're adding on to it and it's obvious it's understood and that's what Mr. Mahoney for him hola was was
was afraid of also from even taking the shade because he said, had I not given him the loan, I wouldn't have even known this person. Right. This was a person I remember hunting for him Allah met for the first time when he gave him that loan. So this is again, anything that is excessive over the money, money for money and it's excessive, becomes Riba today and also allows parents to associate you and Alina Amanullah Kuru Riba, a ba, ba, ba, O you who believe do not consume Riba doubled or redoubled meaning Riba only becomes compounded. So the most evil form of interest is compounded interest. When it's interest upon interest upon interest, it only again the bubble, the bubble
continues to get bigger and bigger and bigger and bigger. muscle loss I sell them
or Alize, I'm sorry, banned Riba, much earlier than he banned the other sense. So the prohibition one was the legislation of his job.
Does anyone know when the legislation of his job was
four years after his law? Four years after his drop, the ban on rubber came two years after his law. The ban on rebar came two years after his law. Okay, around the time of the battle, this was the revelation of of sort of Bukhara.
Okay,
so we have some questions that come in regards there. So I'll address some of the modern day issues now. Okay, if you make a contract with someone, and in that contract, which is very customary in the United States, in that contract, it says so for example, on your credit card on your car, if you don't pay back this amount within this amount of time, you're going to be charged such and such are your loan will start to be compounded with 5% or whatever it is, is it impermissible to make that contract?
If you know for a fact, there are two conditions that have to be met there. Number one, it's a need. It's a need. You needed to go into that contract for a hajer. For Hajji, I don't know, if you all took my cost the Sharia but in Islam, there are three levels of need. There's the Torah, Daria, Bharara which is absolute dire need dire need, you cannot survive without it had
something you need, but at the same time, you can live without it. Technically speaking, you can live without it. Okay, so for example, you could eat the same food every day, but it would be extremely inconvenient to eat the same food every single day, you would need to diversify your your meals and tax any ads. Tasini ads or supplements are things that make things that make life easier, okay, they make life easier, but a person can live a comfortable life without them. Alright. So if the if the loan that you need to take or if the car for example, you need to buy a car,
you need to buy something and it has this six month clause on it. If you have a hajer for it, then it's permissible to go in it. That's the first condition if you have a hajer secondly, if you know for a fact that you will be able to pay it back and if you can't pay it back you have someone who will guarantee the payment for you. So for example, you speak to someone you speak to another Muslim, some of the scholars put this condition and to be honest with you I favorite because our our financial circumstances change so frequently. We don't know you know, I might be able to pay it back fully on
might go into this contract knowing I can pay it back. Some of the scholars added the stipulation, you should talk to another person who can also guarantee the loan for you Who can say, look, if for some reason you fall short with this, I'll take care of it in the short run, and then you can cut and then you can pay me back instead, so that you don't incur labor so that you don't incur interest. I believe this is a condition. I think we should do this. Anytime we go into a contract like that we should have a guarantee or we should have someone who would be willing to back up the loan. The reason why the scholars say it's permissible in the first place.
I saw the low tide on her. So the books have always mentioned this, I saw the Aloha attire Anna, she wants wanting to free a slave girl by the name of Betty era. That era that era was was a slave was asleep. Well, I saw the alarm on her saw much good inside of her.
And actually we read later on in a hadith that Marina used to lead Arusha in salaat, insula holding the most half, she would lead eyes and salon in Ramadan, and pm, so on so forth. So but it was it was a righteous woman, a woman who was scholarly, and it wanted to free her.
But whenever she came to free her the people that wanted the people that that owns her, they said that will free her on the condition
that once she becomes that once you pass away, her loyalty is to us. Once you pass away, her loyalty comes back to us. So I show it back to the profit slice and I'm and she asked the Prophet sallallahu sallam, what should I do and the profit slice of them said, you can make the contract to free her anyway, because the condition they are placing is null and void. It's bothan. It's facet, it's not an appropriate condition. Because once you purchase, then that's it. So in essence, what the scholars say here is that whenever you go into a contract, and you know that this condition is one that you won't have to resort to anyway, because I showed you the law, and I did not intend to keep
her as a slave anyway, was to free her anyway, if you know that you will not be affected in harm by that condition, then it's okay to go into that contract.
Okay, but as we said, as far as late fees are concerned, as far as late fees are concerned, it is by unanimous agreements, how long by unanimous agreement Riba and there are other ways I know that many times we find Islamic organizations work with late fees and things of that sort. There are many other ways to deal with a person who's not paying their fees. So you can cancel their membership, you can cancel enrollment, you can try to collect the funds today we see through lawyers or whatever it is, you don't have to put on someone late fees you don't have because this is what this call is called rebel janelia. late fees literally is the is the river of the people of ignorance, the days
of ignorance.
Okay, another so another.
Obviously, the main thing is the house issue, how much time do I have left? Is anyone keeping time?
I wasn't keeping time.
How much?
20 minutes. Okay.
So, the first thing is with credit cards.
So we go to credit cards.
Credit cards are something that truly have caused the scholars, you know, a lot of trouble because the concept of the credit cards is is truly problematic. And some of the scholars like for example, let me lock in the law 1993 that's what was hot. Um, in 1998, he gave a * what was hot, he changed his first one that a lot of the scholars change their opinions on the credit cards, because it's become sort of a necessity to have a line of credit and things of that sort.
So can you take out a credit card
that gives you back cashback and of course accordance with the first type of river that we talked about? Can you take a credit card that gives you cash back as a reward?
No, you cannot.
cash back, I'll talk about the difference between the two. cashback because it's the same currency for the same return. You're paying this amount you're getting this much because you're using that line of money. So giving, taking out a credit card that gives you cash back rewards is not allowed. Taking out a credit card that gives you airline mileage, gift cards, hotel rewards, all of those things. That's all fine. That's all permissible. Because it's a different category. Don't worry about
I fly all the I need these types of things. Okay, so points, rental cars, airline tickets, hotels, recreation, whatever it is Sky Mall gift, whatever it is, that's fine, as long as it's not within the same currency but you cannot have a credit card that says spend $1,000 you get $50 back for every 1000 you spend that is Riba that's increase without justification, money on money.
Right with the cashback, you can have the credit card, but you cannot exercise the cashback option so you know you can put it into gift cards or whatever it is. I know even those cards that say cashback but I mean to take just pure money credited back to your account because you spent $1,000 would not be permissible
That's fine if it's in the gift card, because again, remember, we talked about six items, two categories, exchange between two items within the same category is fine in different quantities. That's fine. So exchanging gold for silver with a greater amount of gold or greater amount of silver is fine.
But exchanging gold for gold money for money?
Well, you pay, you're using the card. So for example, I have a balance of 1000. And then it became 950. Because I exercise the cash back reward, and I credited $50, back to my account. So that's why what's not
to pay for my bill, right. But to put it towards anything else is fine.
to exercise the $50 for anything else is fine, but don't exercise it towards just to your balance the same way you spent it, then it becomes the first available father, what's the profit slice, I'm sorry, exercising, exchange of commodities, assistance.
transactions,
encouraging you to do this transaction. That's why I'm saying we shouldn't do it.
That's so but all I'm saying is if you have a credit card that has rewards and those types of things, if you use the rewards towards other things, that's fine. But we should not go. And this is where we get a little bit extreme. There are people that you'll find today that still have no credit cards, but there are people today that will go and open 1015 credit cards just to exercise rewards. We have resorted to credit cards, because it's a necessity, not because we approve of the system, not because we approve the system. Also bank accounts, right? There's some people that still say you have to keep your money, but it's not reasonable. Okay, we're in a habit, it's not reasonable to say
you just have to keep your money and not put it in a bank account because of what the bank will do.
But at the same time, don't go overboard with with all of these different bank accounts and,
and things of that sort. So again, it's it's permissible, but it should not be expanded, we should not go to the other extreme of excess.
Okay, now, as far as
the housing is concerned, because I know this is a very, very, very touchy, controversial, sensitive issue. I'm not going to endorse any companies, I promise you, I don't worry, I'm not going to endorse any companies today. But at the same time, I hope that you'll be able to take this and you'll be able to exercise your best judgment.
Number one, we know that there's the fifth law, that you can that you can buy a house on a conventional mortgage, if it's your first home.
This festival was expanded. Unfortunately, the Federalist started off with the people who truly do have doTERRA, who truly do have a dire need, which were people that have 567 children, and no one is willing to rent a house to them. Except that something that's abnormal, fine for those people. Yes, they can exercise that option. They have the fifth way to go and to just exercise a conventional mortgage. Okay. But to expand that to everyone on the concept that it is a lot older, that it is a dire need to own a house in this country is not appropriate. It's not true. It's not a dire need, we can live with up there are people that live on rent and lease their entire lives. And if we if
everyone exercise that then there would be no development of Islamic alternatives. There would be no development of us Islamic alternative because people insist on not paying the river, you find even HSBC and even conventional banks are trying to Vaughn banks are trying to find an islamically compatible packets. So if we didn't if all of us just said, Okay, let's just lay down and take the conventional mortgages, little water. You know, a chef gave a fatwa, it's okay, then Subhanallah we're destroying our future as a community. We're destroying our future as a community. So no, it's not okay for anyone to just go for a conventional mortgage if it's their first house, because it is
no in no way shape, or form a dot aura. The other excuse that's used is that we live in a house.
We live in enemy territory. And because of that amount of money, for Rahim, Allah said, If you live in a house, you could deal in Riba. If you benefit you can benefit from River. Now, first and foremost, a nominee for chemo law said that if you live and he was this was his opinion, and it's not the majority opinion. But it's his opinion. So we respect the opinion, but it doesn't apply here. Remember hunting for him. The law said if a person lives in data, how I'm going to explain what enemy territory is in a minute, and Donald Howard, they are allowed to benefit from the interest of the people not to give but the benefit who benefits from interest here, right. So there
are lots of benefit from the interest the interest system because they're living in doubt and how to in essence, an enemy territory they need to build themselves up by any means necessary because there's a sense of urgency there. We do not live in doubt on how because if you want to open up that door and say we live in data, that means it's hard to get through.
Listen ship.
How many people do we see today that buy houses on rubber but would not would refuse to get citizenship? Right? So we can't play the the pick and choose convenience festival game here. Okay, if you wanted to open up that we cannot own property here in the first place. So you can do ANOVA. But you can't own property here because it's not allowed. You cannot become a citizen of this country because it's not a habit. So we should kick that excuse out of the window from the very start. Okay, if you're on PC, yes.
Checking
a checking account, and interest free checking account is okay.
I'll talk about that. I'll finish the house and sell the housing and then we'll just open it to questions. I'm sure we'll talk about the bank accounts and those types of things in Sharla.
But the short answer is a checking. interest free checking account is okay. But as far as the house is concerned back to the house, in you know, a loss pathetic condemns those who say in them albedo, midflorida that they are is like rubber, it's the same thing. trade is just like, the way that a conventional mortgage works in essence is that you will go to a bank, you will secure a loan, you will take that loan to buy a house and you you place your house as collateral you place your house as as collateral against that loan. If you fail to if you default on your payments, the bank will repossess your house and take it away from you.
There's absolutely no exchange there except for money, you took a loan, you use that loan, your house as collateral, everything is will be taken away auctioned off whatever it is foreclosed if you're not able to pay that loan. As far as an Islamic financial system, and Islamic financial system, there has to be an exchange of commodity there, the company would have to fully purchase the home assume all of its liabilities, assumed all of its liabilities and then sell it to you.
And the loss of loss, I said I'm sad
that they are attained PBR that there is no to sales in one sale, meaning a person cannot say, look, if you give me this amount of money, I'll go purchase this house, and then sell it to you essentially using the money you gave to me at a higher price. Okay, before any exchange of money takes place, they have to purchase the house and sell it to you, they have to purchase the house and sell it to you. So that's the first thing that we see, which is obviously problematic. Sometimes. The second thing is assuming liabilities in moussaka or murabaha. In a true shediac compliance system, they have to assume the liabilities of that house, they have to assume the loss of that
house. So if the house takes a profit decrease, if the market value of the house goes down, then the company that's selling you the house, or the person that's selling you, the house should feel the effect of that just as much as you do when you're making your payments. So let's say you purchase a house for $300,000 you're making payments on that house, and then you know you're making payments to a company that purchased that house and then later on whenever you come to sell the house, you sell it for 280 You don't owe the company $300,000 you should only owe them 280 at that point because as co owners of the house they assume liability at the same time. So this is one of obviously the key
flaws that we see in the system today as for and by the way, you know as for so we go to extreme sometimes also, if the word interest is on your because what is allowed in Islam is it dissolved in default, which is installments. So aside from the whole Profit and Loss thing and those types of things, if they thought if I tell you, I will sell you this Kleenex box for $10 now, or I will sell it to you over six months for $20. That is Helen, that is allowed in accordance with all form of the hub to sell something at a higher
Okay, five minutes on a rush to sell something at a higher price is halaal because there's exchange of goods here, you're not going to increase you don't say I'll sell it to you for $10 or $20 over six months. But if you can't pay in six months, then I'm going to I'm going to charge you a 9% interest rate and a late fee and mark it up and mark it up and mark it up no but you can set a price from the very start. So a company can come and buy a house for $300,000 and tell you I will sell it to you
with at the same rate of a conventional mortgage of 3.3% or whatever it is. So it will end up being $320,000 over 15 years. No strings attached I own the house last lt we compute that that comes out to $320,000 or whatever it is. I'll sell to you for 320 that's fine. That's a lot. That's the thought even if it says in the contract the word interest that's fine. Okay, so we have to be fair with the it's not we always jump on this. I also have my issues very severe disagreements with the Islamic companies. That's not one of the objections, the word interest is not one of them.
objections. The problem though, is whenever they give you two contracts,
fill out this contract for the conventional mortgage and then fill this one out, say, you know, basically, which just redefines the equation.
But it's the exact same thing. That's a serious issue. At the, it's the so you fill out the conventional mortgage, your company will actually belong to Freddie Mac. But here you can fill this one out to to make yourself feel better, that's like Benny is slightly putting out there fishnets on Saturday on the on the steps on the Sabbath, the same thing will just redefine the equation so that we can assign a size that is not permissible, there has to be exchange, they have to buy the house, assume the assets, liabilities and sell it to you. Okay.
Unfortunately, I think sometimes we don't put our companies to the proper whenever you want to buy something, you need to check it Sharia compliance.
One other halaal alternative. And this is this is something that scholars disagree with, disagree upon. The majority of scholars in this country say it's okay is to buy a foreclosed home directly from the bank at an installment price.
So so for example, Chase Bank owns a home, it's on foreclosure, they sell you the home for $280,000. It's not permissible for me to go and secure a loan from another company or another bank, because that create that that creates the wheel again, that redefines the whole wheel. But if I make a deal with Chase Bank, okay, you're selling him for 280, I'll give you 260, over 15 years, Chase Bank owns the house and they're selling you the house. So even
an amendment to the assembly of Muslim jurists of America, which is a very qualified federal issuing body, the assembly of Muslim jurists of America, they said that that is permissible. If you're buying directly from the bank, there's only two contracting parties, and you have a set installment price, that would be permissible. So there has to be buying and selling a true purchase and a true sale. It cannot be just on paper, it has to be a true purchase and a true sale. And you should do your homework on these companies, you really should do your homework on these companies, because some of the major companies are really just playing games. At the same time. I don't say that we
should just forget about the whole Islamic finance thing and just say, you know what, let's just whatever let's just rent or buy can because it has become you know, it's gotten to a point where people will exercise purchasing home so it's important for us to try to find Islamic alternatives. But also especially you know, sister mentioned at the beginning she said Riba is usually a talk for men, I was so happy. so so happy whenever I found that I was giving a lecture on Riba to sisters, because the sisters can sway the household and shala exercise your your, your power over the husband and keep on you know, if he tries to go for something, that's how you get on him and you jump in and
you say I will not accept to live in a hot home home, I will not accept that your income is hot, um, I will not accept this money that is deliver a final note, which is very, very important.
A final note, if you have an if you happen to accidentally incur some interest, some Riba
you should give it in charity, it's not going to count as charity, but at the same time you get rid of it, even if it's 13 cents. If you incur some form of Riba on your bank accounts, you should try to invite the way there isn't a single bank, I promise you there isn't a single bank that if you insist upon an interest free account, that will not give you an interest for your account. I've done it with I've been with three different banks, okay, because I've moved I've switched banks each and every single one said, Oh, we can't do that. Talk to the manager, tell them Well, okay, I'll just have to go to another bank, then that will work with me, then they'll call the supervisor, they'll
take off the interest off of your account. So insist upon it, you have to insist upon it. Even if it's going to take you an extra hour of your life, you have to insist upon it so that you don't incur it up on your account. But if you happen to encourage somebody but then you should give it to charity, it does not have to go towards something filthy. Okay, because some people that they say that well, if you give off the snuba then you should make sure no one eats a river. No one eats and while everybody that is a literal understanding of the Hadith, but it's not the proper way to understand that because in any head on money, any head on money, it is hot on for you how long for
other than you this is a Collider in an axiom and look how long enough see halali like that, it is how long for you Helen for other than you. So for example, if a person has dealt with rebar their entire lives as a scholar, see if a person has dealt with it about his entire life. And then he passes away and his children inherits from him. All of the money they took is hella because they acquired it through a halal means, which was from the inheritance but he will still be punished for dealing in Nova okay? Likewise, if someone
So there's two types of how to money here
I have I'll take one more minute inshallah Thai there's two types of how long money there's how long money that is how long as in seized. So someone stole something. So if someone stole money through volume, no matter who gets it, it still needs to be returned to its rightful owner. Then there's hold on money that has improper sources, interest, alcohol, whatever it may be. That money falls under the guise of the PA haraam University Hello lady that it is how long for him and he allowed for other than him. Okay, that's how long for him and Helen for other than him. Even I know that sometimes we use just to show the importance of giving from our peer sources. For example, in
building massages, yes, it's important we should get from our peer sources to build massage and things of that sort. But you cannot say that it is how long to accept money from a person who has a grocery store or deals in it about to build a message, because using the incident of Abuja, announcing to the chorus before Islam, announcing to crush before Islam, that whoever builds or not when we rebuild the karma, let not your money come from, you know, prostitution or interest or whatever it may be. It has to come from pure sources. There's not a single scholar in the history of Islam that uses Abuja, especially as legislation.
So, ethically speaking, yes, we take the ethical message of that, that yes, you know, I would even Buddha has said when you build them as build it with pure sources, but from a filthy perspective, you cannot there is nowhere in Quran, Hadith Sahaba set out in public that comes what Buddha has said it doesn't exist as a form as a source of legislation. So we use it to encourage people to get from their best sources for the Buttercup but at the same time, we don't say Tom to accept money for an Islamic project, for example, because they dealt an interest or they dealt an alcohol that's their sin before last panel and to Allah, the way that it was taken was a permissible thing.
So lastly, I remind everyone that you know, try your best to deal in head on in whatever way that you can, it will benefit you in doing it will benefit you and inshallah, push your households towards halaal. That way, there will be more blessing in that inshallah.
Mama Shivani Rahim Allah,
the great Hanafi scholar, Imam Mohammed shibani Shivani his students asked them they said, How come you never wrote a book on teskey
nama Shivani was one of the great scholars of Islam what was the heart softeners and teskey. But he never wrote a book on teskey. He authored many books in the Hanafi film, he offered the most comprehensive book manual and mop sort of Hanafi Fiqh, but they said you never authored a book on Tesco. He said, Yes, I did. I wrote Kitab booboo, the book of trade, and that is the greatest book of Tesco because a person who learns how to trade and holiday will be successful in purifying himself. So he asked last contacts to purify us and Charlottes to purify our income, so purify us from all of the dust of Riba and all of the sins, the major and the minor sins. allama I mean, does
that come along? heighten sha Allah Tada. If I said anything wrong, then please forgive me if I said anything, right, Phil hamdu Lillahi Rabbil alameen. I'll go to questions now. inshallah.