Legal maxim: “Every loan that brings benefit is usury,” its related issues and implementation in pre-Islamic and Malaysian financial transactions

Amanullah, Muhammad (2018) Legal maxim: “Every loan that brings benefit is usury,” its related issues and implementation in pre-Islamic and Malaysian financial transactions. Journal of Islam in Asia, 15 (1). pp. 204-227. E-ISSN 2289-8077

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Abstract

An important Islamic legal maxim is “Every loan that brings benefit is usury”. A normal ruling of the Sharῑ‘ah is that if anyone receives a loan from a person or a bank, he is supposed to return its exact amount to the moneylender. Any increase to it is considered usury (ribᾱ’) and therefore forbidden. However, jurists dispute over the following issue: “If this increase is not stipulated at the time of giving the loan, and the borrower gives it at the time of paying the loan back to the lender.” Some jurists maintain that this is lawful, while others consider it as forbidden. Using descriptive and analytical methods, this paper discusses this legal maxim, its proofs, and the disputes of jurists on its related issues, while placing emphasis on the stronger opinion. It then strives to discuss its implementation in some pre-Islamic and Malaysian financial transactions.

Item Type:	Article (Journal)
Additional Information:	3031/64680
Uncontrolled Keywords:	Legal maxim, loan, ribᾱ’, lawful, implementation, financial transactions.
Subjects:	B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP173.75 Islam and economics H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fiqh and Usul al-Fiqh
Depositing User:	Prof Muhammad Amanullah Amanullah
Date Deposited:	25 Jul 2018 10:34
Last Modified:	25 Jul 2018 10:34
URI:	http://irep.iium.edu.my/id/eprint/64680

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