Interest (Islam In Light Of Modern Economics)
Please put one question in one thread. To receive same value of the money you lend is not interest. People used to lend gold and silver coins and receive the same amount back. The same should be followed. Banks can charge an extra amount in the face of inflation. It is not Riba. But banks’ mark up on loan is not just against inflation of depreciation. It is more than that. Qur’an doesn’t not say the Riba makes a rich richer and a poor poorer. Qur’an forbids it because it is unethical, no matter it brings profits or not. This is not its concern. It is unethical because the lender is not investing but lending his money. This is an act of good. Demanding addition on loan is unethical. Islamic banking not better than conventional banking.