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Interest – Inflation Adjustment
Aoa ghamdi sb, my question is regarding personal interest. I will ask it as a scenario.
Scenario 1: during prophet (pbuh) time i assume gold coins were used as medium of transaction.
So if someone gives lets say 50 gold to another person and asking for more than 50 gold coins in return, would definately be unfair (considering gold does not loose value, and purchasing power those days) so hence i assume thats the reason interrst was called haram.
Scenario 2: someone is in need and ask 50,000 rs and tells to return it in 2yrs time.
Considering current inflation, at the time of lending him 50,000 rs, i could buy 1 tola of gold. And when after 2 yrs, when he returns 50,000 i can only buy 0.5 tola gold. So would it not be unjust to the lender.
Scenario 3: lets says same person asks me 50,000 rs. But this time instead of lending him money, i buy him 1 tola gold and asks him to buy me back 1 tola. Now after 2 years price of gold has risen to 100,000 rs. So now would it not be unfair to borrower?
How does islam handles personal lending and borrowing in current age of where inflation is quite common
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3 Replies
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Interest – Inflation Adjustment
updated 3 years, 9 months ago
3 Members
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3
Replies
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Kindly refer to following thread
Discussion 34826 -
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Thanx for the reply, perfectly understood.
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