Interest (10):

Q1: What is the definition of Riba?

A: Riba is every interest that the lender condition the borrower even if it was little or decided after the loan contract takes place.

Q2: If I deposit the amount in a bank and in return, after some time I get an amount which is larger than my originally deposited amount, will it be considered Riba/Usury? Please not that due to rising inflation and devaluation process, the amount which I get after some time may have equal or lesser worth than the amount which I actually deposited.

A: Yes, it is considered as Riba since the permissible loan is when the borrower returns to the lender the same amount without any conditional interest. There is no effect to the change in the market value of the borrowed amount or the inflation on deciding the amount that suppose to be returned back. If these factors were taking in consideration, then the borrower must return to the lender less if the market value of the borrowed amount was decreased.

Q3: My aunt has a job where she deals with riba (interest). is it haram (prohibited) for me to eat the food she buys?

A: No, it is not prohibited.

Q4: We need to buy a New car; One of the reasons is we cannot pay cash which leads us to this question... If we buy it they ask for interest. I always thought that this is Reba. Is it allowed to buy it by paying monthly payments?

A: It is permissible to buy the said car in the installment payments method if the price was set and agreed upon even though the total amount of payments is more than the cash price.

Q5: Is learning and teaching of interest entries in accounting as student or teacher is prohibited?

A: Such teaching or learning is permissible.

Q6: The company I'm working in is providing the service of "Provident Fund". As per company policy it deducts 10% from my basic salary and in return it gives the double of saving amount at the time of resignation.
Is it permissible to avail such service?

A: If the owners of the company were non Muslims, then it is permissible to use this service. If they were Muslims, then it is not permissible.

Q7: Can you explain your views on riba, in one question you mention it is okay to do business with the non muslim bank with interest while haram from bank owned by muslim. In quran it is clearly mentioned riba in any form is haram for muslim.
Please clearify your position?

A: Taking interest from non Muslims is allowed. We can not explain such religious law nor we know the reason behind it. It could be that non Muslims except such dealing for themselves as they give and take interest in their dealings without hesitating or considering anything wrong with such dealings.

Q8: I want to know the Islamic rulings regarding the purchase of treasury bills, whether it is allowed or disallowed in Islam. Treasury bills is when you lend your money to the government and expect an addition (in terms of increase in the amount) at the end of a specified period?

A: It is permissible to make use of the treasury bills and one must not intent to make a deal with the government bank but rather intend to make use of this mechanism. When he receives the money, it should be on behalf of the religious ruler i.e. the just Mujtahid.

Q9: What is the rulings regarding interest charged on loans to cushion against inflation and loss of value of currency and to cater for this inflation and loss of value?

A: It is not permissible to collect interest from private banks. It is permissible from banks owned by the government in the way explained in the previous question. It is also permissible to collect interest from non Muslims.
In general, lending money is based on lending a specific numeric value not the market value of the borrowed amount. As a clue to this truth, when paying back loans, the market value at the time of borrowing is not considered but only the numeric value of the borrowed amount - that was the subject of the lending deal - is considered.

Q10: I need a house of mine and there is a company which lends and charges interest. I really need the money. Can I take the loan?

A: It is not permissible to take a loan with interest.