Types of Interest in Islamic Law Analysis and Application

Abstract

This article aims to define riba as a preliminary matter for the types of it and then defines each type of riba separately and explains the differences between these types of riba with their examples. The article elaborates different situation for the excess in contract of exchange of property by property and distinguishes between excess named with riba and excess named with profit and excess named with Ghaban Fahish and explains the Shariah standard of riba and parameter of Ghaban Fahish and mentions the rule of each excess in Islamic law. The article analyzes many questions related to riba and other simultaneous to it such as the definition of riba is not obstructive due to covering to Qard Hassan while Qard Hassan is valid with recommendation in Islamic law and riba is prohibited. The article elaborates the verdicts of classical jurist regarding to the arrangement of {Zaa wa Tajjal} decrease the amount of debt and receive promptly remaining amount. The article analyzes the problem of inflation and provides the solution for this problem in the light of Islamic classical jurisprudence. The article also discusses the doubts created by some contemporary Muslim scholars regarding to the prohibition of riba and answers the objection in the light of sources of Islamic law.

Keywords: Islamic Economics, Interest, Riba al Fazl, Riba Al-Nasia