an unjust return, often the same as interest in modern lending parlance. Please visit our Sharia'a folder and read our defining papers on this term including those under the heading The Book of Riba.
Riba literally means 'to grow; to increase.' Technically, it denotes the amount that a lender receives from a borrower at a fixed rate in excess of the principal. It is of two kinds: 1. Riba Nasi'a - taking interest on loaned money. 2. Riba Fadal - taking something of superior quality in exchange for giving less of the same kind of thing of poorer quality.
The practice of charging interest on loans; sometimes translated as "usury". Riba is forbidden under Islamic law, which makes the modern finance system challenging for Muslims
An unjust return, such as that obtained through collecting interest.
Quick definition: interest. This is forbidden by the Quran and it forbids any return of money on money, whatever type of interest it may be.
interest, unjust enrichment, usury
Usury. In the modern context it refers to interest paid on borrowed money and interest charged on loans, which are seen as inherently exploitative.
means an excess or increase. Technically, it means an increase over the principal in a loan transaction or in exchange for a commodity accrued to the owner (lender) without giving an equivalent counter-value or recompense (‘iwad) in return to the other party; every increase which is without an ‘iwad or equal counter-value.
Interest. The legal notion extends beyond just interest, but in simple terms riba covers any return of money on money - whether the interest is fixed or floating, simple or compounded, and at whatever the rate. Riba is strictly prohibited in the Islamic tradition.
Riba is the (Arabic: ربا) term for usury, the charging of interest, which is forbidden by the Qur'an.