Is Rental Income Halal?
Hire-Purchase relates to application of basic principles of Riba where two people may disagree on application. So as long as we are clear on general difference between Riba and Rent, the application can be understood w.r.t how one thinks that one particular application has Riba element in it or not; this is not redefining Riba, rather it is applying that definition to one practical newly-created financial transaction scenario. Now, according to Ghamidi Sahab, as I’ve understood, this hire-purchase scenario where I purchased a computer, the consumable factor has been eliminated while it is not the case in case of a cash-based loan arrangement. Therefore, from Riba perspective, the potential of ‘eating wealth through unfair means’ has been eliminated through hire-purchase, because of introduction of a useable product in the equation. There could be other factors that may make this arrangement unfair and for that other things need to be considered in the context of لَا تَأْكُلُوا أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ , but as far as exploitation under Riba is concerned, that is covered. Because the seller owns the Computer until I pay back the complete Principal, and I have not been put through double struggle of both recreating the Principal cash and amount over and above that amount as Riba. In case I fail to pay back, the computer simply goes back to the seller.