Riba
Categories: Credit, Ethics/Morals
If Reba McEntire were to sing a song about riba, it would probably go something like this: “Riba is illegal under Islamic law/ Most of the time the term is used to describe interest on loans/ Ooh ooh ooh.”
Okay, so we’re not going to be launching a career as a songwriter anytime soon. But all that stuff we said about riba is true: it is considered illegal under Islamic law and it's a term that’s usually used to describe interest owed on loans.
In this context, “riba” is money made by exploiting or taking advantage of others. Let’s say someone really, really needs a house, but they can’t afford to buy it all at once. The only way they can get this house is if they borrow the money from us. If we turn around and then charge them interest, we’re taking advantage of them, and exploiting their need to put a roof over their head just so we can line our own pockets. Sharia law says that’s shady...so we can’t do it.
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