Critical Analysis of Islamic Concept of Interest

Farooq Aziz, Syed Muhammad Fahim, Mahwish Anjam and Rukhsar Ahmed

International Journal of Asian Social Science, 2013, vol. 3, issue 5, 1260-1267

Abstract: Traditionally there is a consensus among Muslim thinkers on the definition of interest in the Muslim perspective interest is that excess amount which a creditor receives from the debtor on expiry of loan, subject to the condition this increment is pre-decided and part of the agreement. This definition restricts the concept of interest just to debt and gives special status to costs as compare to other assets. It restricts the rent of cash and legitimates the rent of all other assets. Different reasons are given for this artificial bifurcation. But the critical analysis of all of these arguments shows that all of them are unable to come up any standard of reasoning. Hence this concept is just baseless.

Keywords: Interest; Rent; Depreciation; Cash; Assets (search for similar items in EconPapers)
Date: 2013
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