Inquiry regarding a financial transaction: is it usurious or not?
Machine translationRead the Arabic original
The questioner : The Islamic bank, in exchange for a guarantee. If they give you a guarantee for three thousand dinars, whether they take the three thousand in cash, or give you an easy guarantee for three thousand dinars, or take a quarter of the value in cash and give you a guarantee for three thousand dinars, in exchange for the fact that if, God forbid, something happens, they pay on your behalf. Now, he exploits the money he has, using it however he pleases, and takes the profits for himself exclusively. That is, whether he adds the three thousand dinars to his funds or the seven hundred and fifty, he exploits them however he pleases for his personal benefit. But he conditions this by taking 2% of the value of the guarantee as personal profit. This 2% is fixed, whether the amount is three thousand dinars, or one hundred dinars, or anything else. What do you advise?
The Shaykh : It is not permissible. This is riba.
The questioner : What is the aspect of the riba?
The Shaykh : The fixed rate.
The questioner : The fixed rate.
The Shaykh : Because if he said, "We take this as a commission for registration and so on," we would say there is no objection to it as a fee. But why is one hundred dinars the same as one thousand dinars when the paperwork is the same?
The questioner : Your statement is correct. 2% of one hundred dinars, 2% of three thousand. Of course, the value differs. But he charges a fixed 2% in exchange for saying, "These are my fees," under the pretext of his fees?
The Shaykh : We put our trust in Allah. How?
The questioner : He takes 2% whether the amount is large or small, but he claims that this amount is the fee for writing the document, which takes, for example, one minute.
The Shaykh : Okay, and why does he take the rest?
The questioner : What rest?
The Shaykh : You are saying that the rate differs according to the value of the money.
The questioner : No, the rate is fixed at 2%, but the value of the 2% differs. That is, 2% of one hundred dinars equals two dinars, but 2% of three thousand dinars becomes sixty dinars, and the transaction is the same.
The Shaykh : This is why he is taking multiples upon multiples when the money is multiplied but the work is the same.
The questioner : This is the aspect of the prohibition.
The Shaykh : Yes, exactly.
The questioner : ...
The Shaykh : If you place it as a trust, it is permissible.
The questioner : Do you mean placing the money in the Islamic bank specifically, or any bank?
The Shaykh : Any bank. What is the difference between the Islamic bank and the other banks?
The questioner : I know, but I mean the trust you are referring to.
The Shaykh : A safe deposit box.
The questioner : Ah, may Allah reward you with good, because the brothers think it is placed in a current account.
The Shaykh : No, it is not in a current account.
The questioner : A rented safe deposit box in the bank.
The Shaykh: Yes.
The questioner : They refuse to accept cash as easily as you imagine. If you tell the Islamic bank, "I have, for example, one thousand or five hundred dinars, and I want to place them in the box," they try to convince you by any means that this is forbidden for you and not permissible, and so on. So if you place it in the box, they bind you with many conditions to the extent that you say, "I have given up placing them with them." For example, among the conditions, the bank is not responsible for the contents of the box. If the box is stolen, it is not our concern. If the bank burns down, it is also not our concern regarding the box. And the bank takes a fee for that.
The questioner : A person bought land or any real estate for one thousand five hundred dinars. He agreed with the seller to pay him one hundred dinars every month. After a while, the seller came and said, "My brother, give me the one thousand five hundred dinars in one lump sum. I do not want you to give them to me in installments because I am in need." What is the ruling on paying?
The Shaykh : The apparent ruling is permissibility, but this is on the condition that the original transaction was not based on distinguishing between the cash price and the installment price. If it was based on there being no distinction between the cash price and the installment price, and the seller, out of leniency, sold him on installments without an increase in the price, you are with me because this is your work for me, this is Abu Ahmad.
The questioner: Yes.
The Shaykh : So if he sold you the land on installments without adding a profit for the installments, this is permissible if he waives a portion when you pay the rest in cash. Clear? But if he originally sold you on installments and included an increase, and this increase is what he is waiving, because when he says, "Give me the rest of the price and I will waive it for you," this is a deception that is not permissible.
The questioner : One thing reminds me of another. I rented a shop from a man for sixty dinars a month, and I have a fixed debt to him of a check for one thousand four hundred dinars. He came and negotiated with me to make the rent of the shop fifty dinars for twenty-eight months. That is, the check became due for me to cash for one thousand four hundred dinars, and he said, "I will consider the rent of the shop to be fifty dinars for twenty-eight months."
The Shaykh : In exchange for what?
The questioner : In exchange for the one thousand four hundred.
The questioner : That is, I do not go and withdraw the one thousand four hundred. I consider myself renting the shop for twenty-eight months in exchange for the one thousand four hundred dinars, which is a previous debt.
The Shaykh : Riba.
The questioner : Riba.
The Shaykh : Yes, exactly.
The questioner : May Allah reward you with good.
The Shaykh : May Allah preserve you.
The questioner : ...
The Shaykh : It is not permissible, except in this specific incident, which has a special ruling. But for the general public, the matter is to fulfill the portion.
The Shaykh : It is not permissible. This is riba.
The questioner : What is the aspect of the riba?
The Shaykh : The fixed rate.
The questioner : The fixed rate.
The Shaykh : Because if he said, "We take this as a commission for registration and so on," we would say there is no objection to it as a fee. But why is one hundred dinars the same as one thousand dinars when the paperwork is the same?
The questioner : Your statement is correct. 2% of one hundred dinars, 2% of three thousand. Of course, the value differs. But he charges a fixed 2% in exchange for saying, "These are my fees," under the pretext of his fees?
The Shaykh : We put our trust in Allah. How?
The questioner : He takes 2% whether the amount is large or small, but he claims that this amount is the fee for writing the document, which takes, for example, one minute.
The Shaykh : Okay, and why does he take the rest?
The questioner : What rest?
The Shaykh : You are saying that the rate differs according to the value of the money.
The questioner : No, the rate is fixed at 2%, but the value of the 2% differs. That is, 2% of one hundred dinars equals two dinars, but 2% of three thousand dinars becomes sixty dinars, and the transaction is the same.
The Shaykh : This is why he is taking multiples upon multiples when the money is multiplied but the work is the same.
The questioner : This is the aspect of the prohibition.
The Shaykh : Yes, exactly.
The questioner : ...
The Shaykh : If you place it as a trust, it is permissible.
The questioner : Do you mean placing the money in the Islamic bank specifically, or any bank?
The Shaykh : Any bank. What is the difference between the Islamic bank and the other banks?
The questioner : I know, but I mean the trust you are referring to.
The Shaykh : A safe deposit box.
The questioner : Ah, may Allah reward you with good, because the brothers think it is placed in a current account.
The Shaykh : No, it is not in a current account.
The questioner : A rented safe deposit box in the bank.
The Shaykh: Yes.
The questioner : They refuse to accept cash as easily as you imagine. If you tell the Islamic bank, "I have, for example, one thousand or five hundred dinars, and I want to place them in the box," they try to convince you by any means that this is forbidden for you and not permissible, and so on. So if you place it in the box, they bind you with many conditions to the extent that you say, "I have given up placing them with them." For example, among the conditions, the bank is not responsible for the contents of the box. If the box is stolen, it is not our concern. If the bank burns down, it is also not our concern regarding the box. And the bank takes a fee for that.
The questioner : A person bought land or any real estate for one thousand five hundred dinars. He agreed with the seller to pay him one hundred dinars every month. After a while, the seller came and said, "My brother, give me the one thousand five hundred dinars in one lump sum. I do not want you to give them to me in installments because I am in need." What is the ruling on paying?
The Shaykh : The apparent ruling is permissibility, but this is on the condition that the original transaction was not based on distinguishing between the cash price and the installment price. If it was based on there being no distinction between the cash price and the installment price, and the seller, out of leniency, sold him on installments without an increase in the price, you are with me because this is your work for me, this is Abu Ahmad.
The questioner: Yes.
The Shaykh : So if he sold you the land on installments without adding a profit for the installments, this is permissible if he waives a portion when you pay the rest in cash. Clear? But if he originally sold you on installments and included an increase, and this increase is what he is waiving, because when he says, "Give me the rest of the price and I will waive it for you," this is a deception that is not permissible.
The questioner : One thing reminds me of another. I rented a shop from a man for sixty dinars a month, and I have a fixed debt to him of a check for one thousand four hundred dinars. He came and negotiated with me to make the rent of the shop fifty dinars for twenty-eight months. That is, the check became due for me to cash for one thousand four hundred dinars, and he said, "I will consider the rent of the shop to be fifty dinars for twenty-eight months."
The Shaykh : In exchange for what?
The questioner : In exchange for the one thousand four hundred.
The questioner : That is, I do not go and withdraw the one thousand four hundred. I consider myself renting the shop for twenty-eight months in exchange for the one thousand four hundred dinars, which is a previous debt.
The Shaykh : Riba.
The questioner : Riba.
The Shaykh : Yes, exactly.
The questioner : May Allah reward you with good.
The Shaykh : May Allah preserve you.
The questioner : ...
The Shaykh : It is not permissible, except in this specific incident, which has a special ruling. But for the general public, the matter is to fulfill the portion.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.