Category Archives: Usury

The Harm of The Habit of Being in Debt

The Harm of The Habit of Being in Debt

Author: Said Yai bin Imanul Huda, MA

Islam is a noble religion. Islam already oversees all aspects in social life, including debt and credit. Not only does Islam allow a man to owe other, it also regulates the etiquettes and rules in debt.
The basic ruling of debt is permissible (jaa-iz)

Allah the Glorified and Exalted mentioned some of the etiquettes in debt inside the Qur’an. Allaj the Glorified and Exalted decreed,

{ يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنْتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمًّى فَاكْتُبُوهُ }

Believers! Whenever you contract a debt from one another for a known term, commit it to writing.” (Chapter Al Baqara/The Cow:282)

Even the Messenger of Allah -peace and prayer of Allah be upon him- once indebted to other. At the end of his life, he still owed a jew, and his debt was paid with the armor that he mortgaged to that person
It is narrated from ‘Aisha -may Allah be pleased with her- that she said,

( أَنَّ النَّبِيَّ -صلى الله عليه وسلم- اشْتَرَى طَعَامًا مِنْ يَهُودِيٍّ إِلَى أَجَلٍ فَرَهَنَهُ دِرْعَهُ )

“The Prophet -peace and prayer of Allah be upon him- bought food from a jew not in cash, thus he mortgaged his armor to him.” (Narrated by Al-Bukhari no. 2200)
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Ruling of Recording and Presenting Witness in Debt

Ruling of Recording and Presenting Witness in Debt

Ruling of Recording and Presenting Witness in Debt

In the name of Allah, peace and prayer of Allah be upon His messenger, amma ba’du.

Islam urges that transaction of debt that takes place among people should be recorded. Allah decreed,

يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنْتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمًّى فَاكْتُبُوهُ وَلْيَكْتُبْ بَيْنَكُمْ كَاتِبٌ بِالْعَدْلِ وَلَا يَأْبَ كَاتِبٌ أَنْ يَكْتُبَ كَمَا عَلَّمَهُ اللَّهُ فَلْيَكْتُبْ وَلْيُمْلِلِ الَّذِي عَلَيْهِ الْحَقُّ وَلْيَتَّقِ اللَّهَ رَبَّهُ وَلَا يَبْخَسْ مِنْهُ شَيْئًا

Believers! Whenever you contract a debt from one another for a known term, commit it to writing. Let a scribe write it down between you justly, and the scribe may not refuse to write it down according to what Allah has taught him; so let him write, and let the debtor dictate; and let him fear Allah, his Lord, and curtail no part of it. (Chapter al Baqara/The Cow:282)
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7 Principles in Debt Collecting (Part 02 – Finished)

usury

7 Principles in Debt Collecting (Part 02 – Finished)

Author: Ustadz Ammi Nur Baits (Advisory Board of Konsultasisyariah.com)

In the name of Allah, peace and prayer of Allah be upon His messenger, amma ba’du,
In the previous article , we’ve discussed about 2 principles in debt collecting. In this article below, we’re going to elaborate about the rest 5 principles, and here is the details.

Thirdly, lending money is included in social transaction, as a righteous deed. Threfore, people who lends his money is not allowed to take profit from the debt (the money he lent) in whatever form before the debt is paid off.

Fudhalah Bin Ubaid –may Allah be pleased with him- said,

كل قرض جر منفعة فهو ربا

“Every credit that yields profit, the profit is usury”
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7 Rules in Debt collecting (Part 01)

7 Rules in Debt collecting (Part 01)

7 Rules in Debt collecting

Author: Ustadz Ammi Nur Baits (Advisory Board of Konsultasisyariah.com)

In the name of Allah, peace and prayer of Allah be upon His messenger, amma ba’du,

In Islam, theres no deed that is wasted, even just by giving a small aid to others, including lending money to others that is sure to be returned. While we know that lending money for a short period will not decrease our wealth, aside from the propaganda of the disbelievers about devaluation of money over time (time value of money).

However, mostly the creditor are worried when their money is in other people’s hand. And Allah the Most Generous never waste righteous deed of His slave; even though the only thing that he sacrifices is his feeling and anxiousness over the credit, Allah will replace it with His reward.
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Ruling of Triangle-Shaped Credit

Housing Credit

Triangle-Shaped Credit

Question:

Assalamu’alaikum.

Ustadz, there is a friend of mine who is offered to work in an optic shop. Aside from providing cash payment service, the store also give credit facility through certain bank by paying the down payment to the store first. Is this kind of transaction allowed? May he work in that store?

May Allah reward you with goodness.

From: Jumardi

Answer:
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