Riba, or interest, is a practice that has economic, spiritual and moral consequences. What considered has ‘growth’, now it begs the question if ‘growth’ means to exploit, increase inequality and create injustice? Hence why, Islam forbids it.
Are you involved in Riba unknowingly?
Key takeaways
- Riba traps you unknowingly through credit cards, installment plans, and housing loans that charge interest on borrowed money.
- A RM300,000 home financed at 4% interest costs over RM500,000 total, making it a liability rather than an asset.
- Spot riba by asking: Am I receiving extra money when lending, or paying back more than I borrowed when taking loans?
- Islamic alternatives like halal investing and rental options exist to avoid riba while building financial security.