Riba In Secured Loans For Consumables
If the loan is for a consumable item and an additional amount is demanded on top of the loaned amount then it’s riba. Securing of the loan has no relevance in this matter.
1. Even if the borrower doesn’t have to recreate the markup as he already have an asset to cover it and he wont have to recreate anything? 2. What if i buy a car using borrowed money. Do I have to return the loan and the markup by selling the same car or can I use other sources of income to repay? Wouldn’t it be considered an “unfair” hardship on me as it involves “re-creation”? Just trying to understand the concept of “unfair” hardship of having to “re-create”. 3. Where did we get this concept that “a mutually agreed contract that requires one of the parties to re-create is unfair or zulm”? Is it inferred through the definition of Riba or there is Quran and Hadith to support it? Is this kind of a contract null and void in any court of law in the world? 4. If A lends money to B for 10 years on markup to buy a car that has a useful life 10 years but wracked in a road accident much earlier. Can A still demand markup or that would now fall under “unfair re-creation”. What if the borrowers sells the car instead of losing it in a road accident? What if the useful life of the car is actually lower than 10 yrs the loan tenure? Will appreciate your answers by point – a general answer wont help.