The Dangers Of Riba

Decent Essays
Riba is an additional borrowing and there no justification of receiving money. In terms of Islamic, Riba is illegal or in Islam it is stated as Haram which means the people are forbidden to involve in Riba. Also, Riba have stated in Al-Quran “that which you give as Riba to increase the peoples' wealth but not with God; but that which you give in charity, seeking the goodwill of God, multiplies assorted”. (Surah al-Rum 30:39) also “And for their taking riba even though it was forbidden for them, and their wrongful provision of other peoples' property, We have prepared for those among them who reject faith a outrageous punishment. (Surah al-Nisa 4:161).
Dangers of Riba.
The dangers of Riba is it constructs a monopoly in society. The basic view of monopoly pressure the costs to society associated with price that overstates which means high cost. The monopolist can charge higher price than in a competitive market because of the shortfall of competition in financial. This will lead to less
…show more content…
Unearned income means that any personal income that come from investment and more sources that not related to employment services. There are various of unearned income such as interest from saving account or bond interest. People or company start to lend on interest and like parasite that lives rather than proposition business ventures and using their business awareness, skill, knowledge and knowledge about entrepreneurship, The money or something valuable that is easily gain is usually be waste on activities that does not benefit in economics such as gamble, betting, drinking alcohol, horse-racing and others. This type of activities are illegal in terms of Islam and Muslim are forbidden to involve in those kind of activities. This is because it could destroy mankind health and prevent the economics growth. Therefore, avoid Riba can guarantee the growth of economics and could prevent any illegal activities in the
Get Access