The theory of riba

The term riba may be discussed in depth to determine whether it includes modern bank interest. Before and during the Prophet's time, numerous types of Riba existed. The Qur'an's clear ban on riba pertains to riba al-jahaliyya, one specific type of Riba, and does not cover riba-bearing deals in the 'six commodities' (gold, barley, and others) -- the sunna addresses such riba. Pre-Islamic Arabs practiced oppressive interest and lent money with stipulations of increase. Some scholars advance a number of arguments for their view that modern bank interest is not riba al-jahaliyya but rather riba al-fadl. They also maintain that interest is permissible since it benefits Muslims, and that it is necessary and necessity makes the unlawful lawful. The debate over whether bank interest is riba is a complex and ongoing one. Nonetheless, it is advisable to avoid interest and to embrace permissible transactions such as bay' (sale) and profit-sharing. Interest can lead to exploitation and re