How to Avoid Riba (Usury): A Reader

“Allah has permitted sale, and prohibited usury.” [Qur’an 2.275] Lectures The Prohibition of Riba (Usury) in Islam – Shaykh Faraz Rabbani Shaykh Faraz Rabbani explains the firm Divine Call to the Believers to completely leave riba (usury/interest). He explains how the prohibition of riba came—in four stages, in four sets of verses, with increasing degrees […]

Can I Offer an Incentive When I’m Seeking a Loan?

Answered by Shaykh Faraz A. Khan Question: What is a halal form of offering incentive to a loaner when requesting a loan. I am a small business owner seeking to purchase a building/shop and I am in need of start up money. Everyone is interested in investing in exchange for a continuous percentage of profit. […]

The Rulings of Using Certain Alternative Financing Mechanisms

Answered by Shaykh Faraz A. Khan Question: Is a financing mechanism whereby I purchase assets from a bank, on a murabaha concept of known and stated profit to the seller at deferred payments, and subsequently sell these assets upon taking possession of them, via the bank’s brokerage services or otherwise, permissible?  I have read that […]