Why are Somalis so opposed to riba in banking?

[Apollo]

Because somalis are muslims.
However Mortgage is a necessity in the West.

Buying a house upfront with cash is bad for economic growth.

It is better for people to slowly pay it off.

Loans expand the economy by increasing consumption. It literally makes fewer people poor when managed correctly.

 

[Ahmed Ato]

for the proponents of interest-based banks, why do you guys not think Islamic banking will work?.

For Example, if a house costs $200k, an Islamic bank can buy the house and then sell it to you like at $400k and it will be halal since it is not riba. you avoid haram and the bank still get profit
where a riba-based bank will sell the same house to you at $200k but if you add interest money, the house cost will probably be around $400k.

These two examples may look similar but one is halal and the other is haram.

 

[Apollo]

for the proponents of interest-based banks, why do you guys not think Islamic banking will work?.

For Example, if a house costs $200k, an Islamic bank can buy the house and then sell it to you like at $400k and it will be halal since it is not riba. you avoid haram and the bank still get profit
where a riba-based bank will sell the same house to you at $200k but if you add interest money, the house cost will probably be around $400k.

These two examples may look similar but one is halal and the other is haram.

It is stupid and pointless because that price difference = same thing as when you are charged interest rates.

You are still paying the bank for the risk they are taking by providing you a loan.

 

[Periplus]

These two examples may look similar but one is halal and the other is haram.

Both are considered haram by many scholars.

My argument is that if both are haram, it’s stupid for Somalis to disparage traditional mortgages in favour of shariah-compliant loans.

 

[Angelina]

How come somalis aren’t against Riba when it’s student loans but are against it when it’s mortgages?

Somalis pay car insurance and health insurance (in the US) but it’s still haram.

Why do Somalis flipflop on financial rulings in Islam when it’s convenient but are too low IQ to not realize some of the most convenient times are when you’re paying a mortgage.

No one, especially not some qaxooti, is going to fork out hundreds of thousands of dollars in cash to buy a house. So would you rather live your whole life paying rent? You’re paying $1.5K a month for 10 years, that’s already nearly $200K you have spent during those ten years on rent and that money will NEVER return to you. You are basically throwing money into a never ending hole.

Why not pay mortgage everymonth and then after a decade or two you would have spent the same money you would have on rent except you now own a house. That’s a literal investment.

There are Islamic mortgages people can apply for. At least then, their conscience is clear and there is an Islamic fiqh ruling backing it.

 

[Blacked]

Islam.....

 

[Ahmed Ato]

It is stupid and pointless because that price difference = same thing as when you are charged interest rates.

You are still paying the bank for the risk they are taking by providing you a loan.

i get that you're still paying the risk the bank takes but one is deemed halal. this makes a difference because a lot of Muslims wouldn't want take a loan from a riba-based bank where they would if it was an islamic bank.

 

[Ahmed Ato]

Both are considered haram by many scholars.

My argument is that if both are haram, it’s stupid for Somalis to disparage traditional mortgages in favour of shariah-compliant loans.

every Sheikh i know both Somali-speaking and English one says it is halal. Only few extreme ones say it is Haram.

 

[Apollo]

i get that you're still paying the risk the bank takes but one is deemed halal. this makes a difference because a lot of Muslims wouldn't want take a loan from a riba-based bank where they would if it was an islamic bank.

At the end of the day, the difference is only semantic. Roughly the same costs are paid by both groups.

 

[World]

If you want to commit riba feel free, but the guidelines of Islam are very clear.

 

[Apollo]

If you want to commit riba feel free, but the guidelines of Islam are very clear.

Explain how you can loan out rapidly declining currencies like the Turkish Lira without interest rates?

No bank in Turkey do this, because it is not possible.

 

[World]

Explain how you can loan out rapidly declining currencies like the Turkish Lira without interest rates?

No bank in Turkey do this, because it is not possible.

I am not Turkish nor am I a bank so it doesn’t concern me.

 

[Apollo]

I am not Turkish nor am I a bank so it doesn’t concern me.

Turkey is the strongest non-petrostate Muslim country and their currency is still shit and loses value rapidly to the US Dollar or Euro because they print it out of thin air.

So if a bank loans out Turkish Lira, they will lose like 20% each year from inflation.

 

[FOBish]

Most Somalis are not against riba because it is haram, especially when it comes to buying a home; they don't want it because if they have the mortgage that means responsibility, finding a stable job, husband and wife are glued to each other to pay the mortgage. The majority of them lie and do other haram stuff like lying to the government and becoming a single mother, getting low-income housing, and men eating qat day and night.In Australia most of these Somalis, including the most religious ones were scamming the government for daycares payments, and no one was against this famous scam in the Somali community. Somalis like easy life because if they cared about deen, our community and country would not be a laughing stock.

 

[Caaro]

for the proponents of interest-based banks, why do you guys not think Islamic banking will work?.

For Example, if a house costs $200k, an Islamic bank can buy the house and then sell it to you like at $400k and it will be halal since it is not riba. you avoid haram and the bank still get profit
where a riba-based bank will sell the same house to you at $200k but if you add interest money, the house cost will probably be around $400k.

These two examples may look similar but one is halal and the other is haram.

You just contradicted yourself, why would Banks sell a house for $200K when they can make $400K by making someone else pay mortgage?

Even if that person winds up bankrupt and can’t pay it off. They’d be forced to sell it and the bank will still own the house lol.

So obviously if they’re going to sell the house upfront they’re going to mark it up and then for the islamic bank to make any profit so they can continue the business they’ll have to mark it up as well.

That is why when you’re buying a car they ask you if you’re paying with cash or credit. If you say credit and then last minute change to cash. They’ll redo the whole price and give you a higher price for the car.

 

[Periplus]

Imma settle this argument now.

The Somali community would have less gangsters and bakhtis if they took home loans and moved out to the suburbs.

The one Somali community that has largely refused to take out home loans is consequently the one with the largest gang problem.

 

[Abdalla]

O you who believe! Be afraid of Allâh and give up what remains (due to you) from Ribâ (usury) (from now onward), if you are (really) believers
2:278

And if you do not do it, then take a notice of war from Allâh and His Messenger1 but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).
2:278

I just don't understand how this forum allow apostates to spread their corruption.

Regarding the part about taking riba is as if it’s going to war against Allah and His messenger. Ibn Abbaas said that the people that took riba will be given a sword on judgement day and they’ll be told ‘go ahead, go to war against Allah’. What a terrifying fate.

 

[Juke]

Everyone does riba, it's impossible to avoid interest using modern currencies...unless you go off the grid and return to herding camels. It's build into the system.

 

[Thugnificent]

Taking out Riba is xaram(whether it's a mortgage or student loans). No matter how you twist it you're still sinning.

I have no problem with people taking out mortgages but them telling other Muslims it's OK is where I draw the line.

 

[Abdalla]

for the proponents of interest-based banks, why do you guys not think Islamic banking will work?.

For Example, if a house costs $200k, an Islamic bank can buy the house and then sell it to you like at $400k and it will be halal since it is not riba. you avoid haram and the bank still get profit
where a riba-based bank will sell the same house to you at $200k but if you add interest money, the house cost will probably be around $400k.

These two examples may look similar but one is halal and the other is haram.

That is riba as well.