Abstract

http://ssrn.com/abstract=1528770
 
 

References (35)



 
 

Citations (1)



 


 



Riba, Interest and Six Hadiths: Do We Have a Definition or a Conundrum?


Mohammad Omar Farooq


Independent

December 27, 2009

Review of Islamic Economics, Vol. 13, No. 1, pp. 105-141, 2009

Abstract:     
The Qur’an categorically prohibits riba, but does not define it. It is commonly argued that riba is defined by hadith. At the time of the revelation about riba, the only type of riba known was riba al-jahiliyyah. If only that type is considered, usury or usurious/exploitative transactions would be prohibited. Later, the scope of the definition of riba was broadened based on hadith as textual proof, leading to the traditional position that all forms of interest are prohibited. In this paper it is explored whether the commonly-cited hadiths to define riba hold up as claimed. Based on the analysis presented here, while the Qur’anic prohibition can be easily understood in the case of riba al-jahiliyyah, and the rationale for it is obvious, as the readers would find, it is indeed a daunting task to use hadiths to define riba and justify the broadened scope in terms of the riba-interest equation.

Number of Pages in PDF File: 37

Keywords: Islam, Islamic Economics, Islamic Finance, Islamic Banking, Riba, Interest, Haram, Usury, Hadith

JEL Classification: B, B19

Accepted Paper Series


Download This Paper

Date posted: December 28, 2009  

Suggested Citation

Farooq, Mohammad Omar, Riba, Interest and Six Hadiths: Do We Have a Definition or a Conundrum? (December 27, 2009). Review of Islamic Economics, Vol. 13, No. 1, pp. 105-141, 2009. Available at SSRN: http://ssrn.com/abstract=1528770

Contact Information

Mohammad Omar Farooq (Contact Author)
Independent ( email )
No Address Available
Feedback to SSRN


Paper statistics
Abstract Views: 5,113
Downloads: 1,284
Download Rank: 7,486
References:  35
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.250 seconds