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Riba (usable Vs Consumable)
Irfan Shehzad provided his response to a question about auto loan. I’ve two follow up questions
Discussion 32453 • Reply 32756
1.
سود ایسی چیز میں ہوتا ہے جو استعمال میں آ کر اپنا وجود کھو دے
How did he derive this definition of Riba? Please provide reference to Quran or Hadith that make this distinction: Usable vs consumable
2.
کرایہ دینے میں تاخیر ہونے پر جرمانہ عائد کرنا بھی درست ہے تاکہ کرائے کی بروقت ادائیگی کو یقینی بنایا جا سکے۔
Isn’t this a textbook definition of riba to demand extra money even in the form of a penalty?
Thank you.
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3 Replies
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Riba (usable Vs Consumable)
updated 6 months, 2 weeks ago
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For anything that’s usable (not consumable), the usage fee charged is called rent, and it’s perfectly halal. In fact prophet SAW is reported to have rented out land himself. Please see:
https://sunnah.com/bukhari/47/16
It’s only when lending a consumable item (money, grain, etc.) the usage fee is called riba. In other words, what makes charging a usage fee haram when lending an item is the difference between the consumable/non-consumable nature of the item.
Enforcing penalties is also perfectly fine. The concept of riba only kicks in when there’s a loan transaction. Renting out an item is not a loan, hence the penalty for late payment is not riba.
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Thank you @faisalharoon
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Thats correct as per ghamidi Sahib, some people might say to mention hadith that’s about renting a land ,
Let’s clear the wording of the Hadith prophet PBUH rented the land there must be some rent for the land ,when we use term rent so that Jew was paying rent to PBUH second part of the Hadith granted the land for rent one condition that’s half of production go towards PBUH ,so in general prophet taking rent from the land and that half what produces ,this is exactly the same as you do mortgage bank buys for you on one condition condition is you will pay certain % extra to the actual cost , now compare the Hadith,Jew paying rent ,we paying towards the actual cost as for monthly repayments , now second part of the Hadith Jew paying extra half of what land produces the same way we are paying extra towards the actual cost of the mortgage,hope this clears ghamidi Sahib point of view absolutely correct
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