Q.11 Islam allows sale but prohibits usury. Critically explain.
Ans: Islam gives complete code of life. The Words Islam stands for submission or loyalty. As Islam is a Divine religion, we drive the guidance for our activities either from the Holy Quran or the Sunnah. For the procurement of “Riza” the Quran suggests no specific media except involving the vast sources by Allah for the utilization of the mankind for the maximum.
Islam establishes various form of law for their regulation and conduct of business and manufacturing activities. For modern economic system reward of capital is interest. Islam has prohibited interest. Muslims are not allowed to receive and pay interest in any form. It is not correct to interpret “Riba” as usury and distinguish it from interest. Irrespective of the nature of use of borrowed, if the lender receives from borrower any amount excess to the amount, which is to be considered as interest. Under Islamic provision of trade, a contract of sale has the following essential element.
(1) PARTNERS TO THE CONTRACT
There must be two parts to the contract of sale of goods namely the buyer and the seller. Such persons now are earning livelihood by illegal and criminal means and also not allowed such as thereof, interest manage, dealing in liquors and bribes etc.
(2) SUBJECT MA TTER OP CONTRACT
The following are the conditions, which will make the sale as valid:
(a) The goods must be Halal.
(b) The goods must be traded for profit.
(c) The goods must be under the lawful custody of the seller.
(d) A pledge of the goods cannot sale without the permission of the pledge.
(e) The seller must disclose the characteristics of goods to be sold.