Riba In Secured Loans For Consumables
Brother Wadood. Consider this, the poor man shouldn’t lend the money to rich just because the rich wants to make more money or doesn’t have ready cash for his needs. Even if he does lend, he can lend the money without interest or buy an item the rich person needs and rent it out to him at whatever the rent that is acceptable to the rich person. I do not see a need for an interest-bearing loan in any condition. In a bigger picture, I think an economy can run on the principals of mutual investments or rental business. I think, we agree on the general principle, it is just that we need to see everything from every perspective.
Actually, as a second thought, if the lender is accepting lesser profit than his proper share of investment, then he can demand a full return of his principal if business goes down. But this arrangement may not be practical in real life.