A STUDY ON: “PHILOSOPHY IN PROHIBITION OF RIBA&SOME SCHOLARS’ VIEWS REGARDING INTEREST”

Abstract

This paper investigates about the old term Riba /usury and interest. In this different types of Riba and Interest with reasons behind its prohibition is also presented in it Islamic point of view and regarding philosophy of prohibition of interest and some scholars views are discussed in brief manner. Furthermore, from some scholars’ views, it has been cleared that interest giving and taking are not same matter in prohibition. Interest bearer has no compulsion in bearing interest. While the poor or person who pays interest with money, he has to take money in compulsion from the rich. The wisdom behind the prohibition is that it encourages idleness and earning money with money rather than doing hard working. The philosophy of declaring interest as Prohibited is that it is against justice and spirit of Islam. Moreover, this paper presents clear and vivid commandments with logic for understanding that in presence of interest rate, hoarding of money, preservation of money and monopoly system may be seen in the society.