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Lending Person in KSA

I am a small businessman I use to buy and sell electronic items as well as gold with no specific profit... but profitable. My rules is that when you take items from me i.e. cellphone or gold you should pay it within 3 months e.g. the amount of cellphone SR1300 you should give SR300 as downpayment to make sure that you will not return it after use and for the gold there is no downpayment e.g. the price of gold you took is 900 Saudi Riyals you should pay me 300 after one month as 1st payment then 300 2nd month, and 300 as 3rd month last payment. I don't see if this is Riba!

I was convinced by my dealer at a Hospital that some of the people are in a dire need and they would like to lend money from me at an interest of 8%. For example, if you lend from me 1,000 Saudi Riyals you will pay me back 1,080 Saudi Riyals after one month. I am not forcing a person but this is their bargain, their offer. I want to quit from this kind of business but I could not because if I do so there will be so many people who will not eat and their children back home will stop from school because of financial problem. I consider that I am helping many people from my business. Is this Riba?! I don't think so, of course if you are a businessman for every cents go out there should be a profit. Please advise to my email at Thank you very much.

That is Riba for sure

Please accept my apology for belated response; I have just seen your post when logged in after two weeks. Your posting makes two cases that are principally different; let me put my mind as below:

  1. Setting price for negotiable things and making payments in installments is the right of transacting parties to decide mutually and whatever you jointly agree on these terms is not an issue from Islamic point of view and therefore there is definitely no Riba in your first case.
  2. However, for your second case - the price of money is fixed i.e., non-negotiable and no one gets any right to negotiate the price of money, any forced increase is Riba where “forced” means – no actual and corresponding profit was made at the deployment side of the money. That is Riba.

    Secondly, it is not you or me or anyone else for that matter who are feeding people or close to them more than Allah (SWT), this thinking is not justified for any Muslim, if you want to help them - give them without charging 8% p.m. The humane argument you are saying in effect is not an argument but a justification of your taking of undue profit, it is Riba, please abandon this practice asap.

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