[Video] Charging Interest in Islam

This is a personal interpretation of the verse of the Holy Quran which prohibits charging of interest. This varies from the traditional interpretations. It has to be said that the traditional interpretations although interpreting this verse as totally prohibiting interest then set out to devise methods to circumvent the prohibitions. An example to generate a fictions transaction where the lender pretends to buy something that the borrower has for one price. Then after an agreed fixed period the lender agrees to sell it back to the borrower for a higher price. It is held that this is trading and not charging interest! A more honest approach may be to look at the context of the verse and seek a new interpretation.

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