Is Rental Income Halal?
What if the loan is lease to own agreement or the lender agrees to buy back computer at original cost? Is it going go make the markup halal? Actually your reasoning is whether the principal sum or investment is secured or not. This is not what i am discussing. It is secured or not or whether there is high chances of default or whether lender will be able to recover it or not is not something that falls under “riba”. We are discuss just the additional $1000. Tell me what is difference between interest and rent if the money borrowed was spent on buying a computer no matter how this transactions was documented the rights and obligation of the parties remain the same under both scenarios. Dont see why one of them is halal and other is not. There is fundamental problem in understanding the difference between riba and trade. This is causing the confusion here.