Usury (Riba), Gharar (Uncertainty) Maysir (Gambling)

USURY ( RIBA) , GHARAR (UNCERTAINTY) MAySIR (GAMBLING) USURY ( RIBA) Definition: In literal meaning, riba or interest means excess,increase or addition. In Islamic terminology, riba means effortless profit or the profit that comes from the late payment from the loan. The interest charge for late payment in the repayment of a loan is considered as riba. (an-nahlu : 90) Allah allows trade and prohibited riba (2 : 275) Interest is only considered as riba if the amount loaned is â€Å"doubled and re-doubled† (3 : 130) Types: †¢ Riba an-nasi’ah is the stipulated interest that the lenders take as their profit in consideration of the time given to pay back the loan. It is defined as excess, which results from†¦show more content†¦This growing practice of Islamic banking will be discussed more fully in a later section as a modern application of usury prohibition. GHARAR (UNCERTAINTY) MAySIR (GAMBLING) Definition The Arabic root for gharar means deception - but in practice the term is used quite widely. Gharar encompasses: uncertainty, risk, hazard and deceit. According to Al-Qarafi, the definition of gharar is that which has a pleasant appearance and a hated essence. EVIDENCE OF ITS PROHIBITION The definition of gharar according to the Syariah is: Ù…Ø § ÙŠÙÆ'ون Ù…Ø ³Ã˜ ªÃ™Ë†Ã˜ ± Ø §Ã™â€žÃ˜ ¹Ã˜ §Ã™â€šÃ˜ ¨Ã˜ © Ø £Ã™Ë† Ø §Ã™â€žÃ˜ ®Ã˜ ·Ã˜ ± Ø §Ã™â€žÃ˜ °Ã™Å  ÙŠØ ³Ã˜ ªÃ™Ë†Ã™Å  Ø ·Ã˜ ±Ã™ Ã˜ §Ã™â€¡ , Ø £Ã™Å  Ø §Ã™â€žÃ™Ë†Ã˜ ¬Ã™Ë†Ã˜ ¯ ÙˆØ §Ã™â€žÃ˜ ¹Ã˜ ¯Ã™â€¦ Anything that the end result is hidden or the risk is equally uncommon, whether it exist or not. Hadiths and Gharar Scholars have cited numerous examples of hadiths, where gharar is prohibited. According to a strong hadith, narrated by Muslim, Ahmad, Abu Dawud, Al Tirmidhi, Al Nasai, Al Darami and Ibn Majah on the authority of Abu Hurayra Prophet Muhammad s.a.w. emphasizes that: نهى Ø ±Ã˜ ³Ã™Ë†Ã™â€ž Ø §Ã™â€žÃ™â€žÃ™â€¡ Ø µÃ™â€žÃ™â€° Ø §Ã™â€žÃ™â€žÃ™â€¡ Ø ¹Ã™â€žÃ™Å Ã™â€¡ ÙˆØ ³Ã™â€žÃ™â€¦ Ø ¹Ã™â€  Ø ¨Ã™Å Ã˜ ¹ Ø §Ã™â€žÃ˜ ºÃ˜ ±Ã˜ ± It was reported that the Messenger of Allah) forbade sales that involve undue risk (gharar). (Related by Muslim, 5/3) Other examples include: †¢ selling the birds in the sky or the fish in the water, †¢ the catch of the diver, unborn calf in its mothers womb, †¢ the sperm and/or unfertilized eggs of camels Schools of