Riba In Secured Loans For Consumables
To my understanding Riba is “Usury or any other unjust or exploitative gains made in trade or business” Let’s keep “Usury.. that includes taking interest on a loan” separate from “Exploitative Gains in trade or business” 1. Based on the definition above all Riba is prohibited in Islam whether it is Usury, Interest or exploitative gains in trade or business. Profit in trade is Riba if a business takes advantage of a dire situation (for necessaties of life; as defined differently based on the society and location) and takes extraordinary profit. This would also include if someone takes extraordinary profit due to hoarding or monopoly situation. All other business profits will not be Riba. 2. Rent is cost of usage + reasonable profit. 3. Value of goods exchanged is measured against open and fair market with open competition without regulations.
Brother Wadood, if you are talking about Preferred stock model as described in this article with a fixed monthly payment and all the other details mentioned, then it is not riba either and I agree with you. https://www.investopedia.com/terms/p/preferredstock.asp