Professions-Financial Services/Banking

[Deliverance]

Sorry,but i had to Quote the source later,because i had to go offline now.

[ahmad]

Salam Ruquaiya.

May God aid you in your pursuit of knowledge.

Regards

[Sardar Miyan]

Assalam DeliverencePlease go through Bro Josephs rWa alaikum assalam Sardar,

The argument was made in support for the need for justice and the Quran's instruction that one is entitled to their principal back (2:279). If one bag of sugar was lent, then the lender has the right to receive one bag of sugar in return. If one camel was given, then the lender is entitled to receive a camel back. If a car was given, then the lender is entitled to receive the same / similar car back.

However, if someone lent $1000 to someone and 30 years later gives the same $1000 back, then the lender would arguably be at a detriment as the currency is not likely to hold the same 'value / purchasing power' that it did 30 years ago.

Therefore, the argument was made that this 'offset' should be potentially considered carefully as compensatory when dealing with a depreciating commodity such as money so that the lender is not placed at a detriment.

In my humble view, I think it is fair argument that any inflation factor is carefully considered when agreeing a loan so that the lender is not placed at any detriment.

However, of course, if the currency for some reason becomes stronger, then the debtor should be able to benefit by paying less amount back in accordance to the 'value / purchasing power' of the currency.

I hope that helps, God willing,
Joseph
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'During times of universal deceit, telling the truth becomes a revolutionary act' 
George Orwell
eply about Riba.

[Deliverance]

Dear Sadar,

"A loan involves delay but not quantity excess. One person gives an amount of money, after a period of time (excess) the person returns the money without increase. The excess in time is justified and is halal, but adding an increase in the quantity to be repaid is unjustified and is haram. This is Riba al-fadl.

 An exchange involves no delay and no quantity excess. One person gives an amount of money and without delay the equivalent is given. Delays are not justified in an exchange. If you want to delay the payment, you have to make a loan, you cannot obtain a loan disguised as a ‘delay exchange’. Delayed exchange is Riba al-nasiah.

Since dayn is in itself a delay, the use of dayn is restricted to private transactions and it is prohibited as a general means of payment (money). While dayn per se is halal, it is not halal to use it as money. Dayn is a private contract between two individuals and must remain private. The transfer of dayn from one person to another can be done Islamically, but only by the elimination of the first dayn and the creation of a new one. The dayn cannot circulate independently of what it represents. The owner must take possession of the goods and liquidate the dayn. Dayn cannot be used in an exchange and it cannot be used as a means of payment. It is specifically forbidden to use dayn to pay zakat."

Dayn means non-possession(money,perceipts)

[Sardar Miyan]

Bro Deliverence Can you please explain as to what "Dayn" means so that I may reply as I could not see your response early. Thanks