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what about savings account? our money in the bank is being eaten up by inflation. Even with a savings account, the rate offered is at 4.5% while inflation is lets say 9% you are losing money either way when you have the savings account or just by simply leaving it there in your bank

Is adding interest to the principal of the car okay?

Is there a cost to money? How do you reconcile inflation with interest when fiat currency and modern economics means that the value of money is eroded over time. Also, if we are in Darul Haram then could the economic system be considered anti Islam and of so is the prohibition on interest more nuanced. For example if I have $1000 and leave in the bank and come back in a years time and do not take interest the value of my money has gone down by inflation. If I was to take interest at the same rate as inflation I have effectively preserved my money. Is this RIBA or a Muslim having to operate in an economic system that is not governed by Islam?

To learn more about RIBA, its types, rules of trade vs. riba, and similar topics, please watch this longer video: czcams.com/video/18FJgXjqW0w/video.htmlsi=Q1ms2rf7Ace_M9aQ

How about modern Islamic banking system? Isn’t that based on Riba? i.e. Libor, Discounting Factor, TVM etc.

I know the people who give lectures on it itself involved in it or enough rich they did no need riba...but they even don't help poor middle class...stay away from Thier problems.. So just they keep u where u r....😂

How about if the 0% interest free offer is only for a limited time period, meaning for example for 4 years, does this make the contract Harram, because it will be based on interest after all?

you know that you don't really own the car till you pay in full? the dealer keeps the title with him all the time, this might add more complications

Riba is not interest. Riba is Usery. Interest is the cost of money while usery is the excessive charging of interest to take advantage of people in need interest reflects that the value of money changesover time i.e inflation. The value of $1000 now is not the value of $1000 50 years ago. Money is just a piece of paper and the number printed on that paper is not what is important. What is important is the value of the goods and services it grants you in exchange for that paper. If you borrow $1000 and give it back in 50 years, then you must give back equal value and simply giving the same number would not be equal value. You can do so by calculating the value in monetary terms of a similar good. What would the thousand dollars have bought you 50 years ago and how much money is necessary to buy the same good today. Or you can use interest, which is the mathematical calculation of that change in value. At the end of the day money has no inherent value. It is a representation to reflect the value of the goods exchanged. Interest is therefore not Haram as is the mathematical expression of the value of money and allows for the exchange of equal value instead of the exchange of arbitrary numbers printed on paper. What is Haran is charging excessive interest to take advantage of those in need. That is Usery, and it is Haram. Anyone that does not have the understanding of the economic principles of interest and the difference between interest and Usery, but rather equating the two should not be giving advice and making Haram what is allowed as that self is a sin

This is very valuable, i hope you upload more videos like this. jazak allah khayran.

What about car insurance?or any kind of insurance?

Walikumussalam

No music please.

Every U.S. dollar is built and created by Usury! Unfortunately every time you transact in U.S. dollars or any other currency issued and backed by a central bank from any country of the world then you are propagating and using and benefiting from Usury. The major problem is not when you buy some money for more money "which is still Usury". The major issue is transacting using their instruments of Usury which are all the currencies issued by the world's central banks and backed by the world's mega Central Banks: The FRB, The IMF and The BIS. Because of this mega evil Usury banking system, we no longer have money. We only have "promissory notes" which is classified as "currency" and not money, real money is gold and silver. The only solution is to revamp the entire world financial system which is just about to collapse on its own and bring forward a money system that is created an equity and justice backed by gold and silver. Until such time we are drowning in Usury every minute and every second of our lives.

The economic term for “money for money” would be cost of financing. An intriguing aspect of interest rate is that if a central bank sets the interest rate to zero, this would lead to huge money supply in the economy (because of zero cost loans available, people will borrow more) and will lead to massive inflation. Because of zero cost financing, people will borrow more to cover their expenses. This in turn will drive the prices of goods up. So in the end, people will have to shell out more money to buy stuff. It is kind of a self regulated system.

Brother, companies like mercedes will sell you a car at 0% but charge account keeping fees, etc

Slm. As questioned by Sheikh Imran Hosein, why should i buy car from bank which is so expensive compared to market price? Becoz bank sell at credit price, not market price. In Islam, market price and credit price should be the same or else Riba.

I enquired about the first type of transaction you mentioned when I was buying a car and I was told by a knowledgeable person, we do not make halal what Allah has made haram , we do not ask the dealership to change price of car to accommodate interest. Allah has not permitted anyone to change haram to halal in what ever way, that’s what Jews did in history

the tiny hat people love interest

السلام عليكم ورحمه الله وبركاته. So if I want to buy a house is it the same as you explained for car? Because I have heard them say it's a home loan or a car loan. Please clarify

There is a saying...If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck Same too with riba, disguised by many muslims and islamic finance with fancy names such as profits or rents. Take so-called islamic mortgages as an example. Rent part of it goes up and down, when interest rates go up and down. If it is genuinely riba-free mortgage then this should not happen But it behaves the same as interest based mortgages. So it is riba based no matter how you justify it Same as some muslim car dealers offering interest free credit. But the prices of their cars are considerably more than market value. Their markup, accounts for the interest as the price overall is the same as getting a car at market value and paying the extra in interest over the years. This is nothing but deception. Using fancy names to show sales and transactions are riba free, when they are disguised This caused the downfall of Christians. We muslims are following suit.

I want to build a farm to be self-sufficient and to feed as many people as possible Jazzakallahkhayr

Algo

The challenge is, when you say it's a sale contract, we need to remember that someone else is putting down money for you and it's not the car dealer for sure! That someone in most cases is the bank. Here's where it gets interesting... 1- That bank is using someone else's borrowed money (with promise of interest) that you have just used to pay for your car purchase. 2- The APR% you have agreed to is not going to the seller of the car. It's gone to the lender instead. Hence how can you claim it's halal? Dealers don't absorb the APR and are bound by the retail price. Increasing the retail price is subject to additional taxes like VAT and almost none of the dealers would do that. E.g, check what amount the dealer is using for the VAT next time you are at a dealership. Lastly, perhaps the biggest point most in this Ummah have failed to grasp. Let's zoom out a bit and realise that every industry is hinged on the balance between the demand and supply. When we borrow with riba associated in any shape or form (Direct or indirect financing with promised appreciation), it fundamentally helps the interest based industry to flourish. Less money in circulation and money held to a few privileged while rest of the population struggle to make ends meet. Sounds familiar eh!

To learn more about RIBA, the different types of it, and how to judge business and financial transactions, watch this video I recorded earlier: czcams.com/video/18FJgXjqW0w/video.htmlsi=GxYSZvCMX9DRfLxL

Any advice on how to correct the situation where someone bought a car from dealership with interest?

Thank you for the work

Assalamu alaikum brother Almir. Scholars should come out and speak about all the things you spoke about to instill the idea of taking initiatives. You'll find that their main focus is ibadat, which are still important, but specialists in your field and other fields have to come out and make the point. We need to make all these ideas a culture amongst the people.

Thank you for the work

JazakAllah Khairan💚

Algo

Algo

Algo

Algo

A word of caution for those who might think that the two examples mentioned are the same. It is tempting to say that sale and loan contracts are similar or the same, and that both are riba if the financial outcome is the same. We have to understand that riba, where money is exchanged for money, is not permissible, while a sale contract, where money is exchanged for a non-monetary item, is permissible. Those who fail to grasp this concept are very similar to those mentioned in this verse: "Those who take ribā (usury or interest) will not stand but as stands the one whom the demon has driven crazy by his touch. That is because they have said: 'Sale is but like ribā,' while Allah has permitted sale and prohibited ribā." (Qur'an 2:275). So be careful not to be like these people who looked at the financial outcome in terms of the costs of the arrangement but ignored the fundamental nature of the transactions. I have covered rules of RIBA in more details in this video - czcams.com/video/18FJgXjqW0w/video.htmlsi=Q1ms2rf7Ace_M9aQ

Pakistan had an agricultural economy? Now, it's more like an agricultural museum. May Allah SWT guide us all.

JazakAllah khairan

Could you please explain more about the difference between the two scenarios? Why is one halal while the other is not even though they are both technically the same in terms of the amont of money involved?

AOA brother, I am following your riba videos since 2017 but I beg to differ here . Lets say novated lease triparty agreement b/w you, your company and bank, in this case company cuts salary and pay bank as lease payments. However, this scenerio you thinks as a car subject matter but in reality it is a loan b/w bank and you where bank pay initial upfront to buy car and you pay back lease payment (plus riba) to bank. Please reply brother if this is correct understanding?

This man supports riba but in sugar coated halal profits😂

Islamic banking is backdoor Riba. Let me explain. Why would someone buy somethig at higher price when market price is lower for any product from institutions like islamic banking even tho money from money isn't involved just like he said? They are giving us time. Time is money. Making money from time is the classical definition of Riba. If you are paying now for this product pay X.. if not...pay Y at later date for the same product. Its clear Riba

I recently went to a dealership to buy a used car with cash only. To my surprise, they weren't even willing to accept it because the norm has now become to take a loan and get into monthly payments. And of course that includes interest. That's unfortunate. I didn't buy the car, alhamdulillah.

Riba is Riba my brother, there is no excuse for it...

Great explaination! Assalamu alaikum from Bosnia! - Vatreši

Lets consider a simple scenario where a shop/ online shop giving discount price if we pay in cash and in full, they will give a discount on the labeled price, but they also have EMI with 0% riba, where they are selling the product, but as labeled price, will that be also going to be riba? please let me know, thanks in advance.

u.s treasuries bond gives riba to muslim majority countries

I am not Muslim, but I really enjoy the principles of money from all cultures. Thank you for the content 🙏

Thank you for simple and clear explanation.