Types of Usury in Islamic Economics
Every human being wants a property that is lawful, blessing, and also meaningful for their lives. Assets in Islam are not everything but wealth is needed to support the mission of human life. But blessed and halal property must certainly follow the rules that are in accordance with the pillars of Islam.
One of the things that make a non-halal property is the existence of usury. Usury is forbidden by Islamic teachings. Not only because of mere illicit issues but also because it has a harmful impact on social society, especially those who are less fortunate.
This is also conveyed by the Prophet Muhammad in a hadith, “The Messenger of Allah cursed (condemned) those who ate usury, people who represented him, the author, and two witnesses.” (Narrated by Muslim)
From several approaches to Islamic history and the opinion of scholars, usury is meaningful not only as a regular addition. Understanding usury according to Islam is the addition of payments to people who are in debt with conditions in which the debtor is unable to repay the debt according to the time and amount specified. Against the debtor who is unable to pay it off, then the lender adds back the cost to burden the payment from the debtor.
The following is an explanation of usury and various types of usury.
Prohibition of Usury in the Qur’an
In the Qur’an, there is a prohibition on usury. The prohibition of usury in the Qur’an not only has an impact on the life of the world, but also later in the hereafter. This is as explained in the following verses.
- Ali Imran: 130
“O ye who believe, do not eat usury multiplied, and ask your trust in Allah that you may have good fortune.” (Surah Ali-Imran: 130)
In this verse, Allah forbids believers who have faith in the pillars of faith and pillars of Islam not to eat the wealth of usury especially multiply. It is explained that leaving usury will get good luck.
- Al Baqarah: 278
“O ye who believe, fear Allah and leave the rest of usury (which has not been collected) if you are believers.” (QS Al Baqarah: 278)
In this verse, it is also forbidden to eat and use usury even though it is a remnant, especially for believers.
- Al Baqarah: 275
“People who eat (take) usury cannot stand but like the establishment of people who are possessed by Satan because of (pressure) insane illness. Such a situation is because they say (arguing), actually buying and selling is the same as usury, even though Allah has justified buying and selling and prohibiting usury.
Those who have reached him a ban from his Lord, then continue to stop (from taking usury), then for him what he has taken before (before the prohibition comes); and his business (up to God). The person who returns (takes usury), then that person is the inhabitants of hell; they abide therein. (QS. Al Baqarah: 275)
In this verse, it is reaffirmed by Allah that those who eat usury are experts or residents of hell. As the notion of usury is a multiplication that surrounds a person with no sense of humanity, even though that person also needs and gets into trouble.
Types of Usury According to the Syafiiyah School
The Syafiiyah School is the most widely adopted school of Islam in Indonesia. The following is an explanation of the types of usury according to Imam Syafii.
- Riba Fadhal
Riba Fadhal is an addition that is required in exchanging similar items. Buying and selling is also referred to as barter without any compensation for these additions. This is clarified in the following hadith.
Rasul SAW said, “The transaction of exchanging gold with gold must be the same as a measure, balance and hand to hand (cash), the excess is usury; silver with silver must be equal in size and scale and hand to hand (cash), the excess is usury; flour with flour must be equal in size, balance and hand to hand (cash), the advantage is usury; dates with dates must be the same as doses, scales and hands to hand (cash), the advantage is usury; salt with salt must be the same dose, scales and hands to hand (cash) the excess is usury.” (Muslim)
- Riba Al Yad
Riba Al Yad is usury in buying and selling or which occurs in exchange. The exchange occurs without any advantages, but one of the parties involved leaves the contract before the delivery of goods or prices occurs.
The explanation of usury is also in the hadith of the Prophet as follows:
“Do not transact one dinar with two dinars, one dirham with two dirhams; one sha with two sha because I’m worried about usury (al-rama). One asks: O Apostle, what if someone sold a horse with a few horses and a camel with several camels? The Prophet replied “It is okay as long as it is done by hand (directly).” (HR Ahmad and Thabrani)
- Riba Nasi’iah
Riba Nasi’ah is an addition mentioned in an agreement to exchange goods or muqayadhah or barter in return for a delay in payment. This type of usury is very clear.
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Steer clear of usury reaping treasure blessings:
Ibnu Abbas, explained that usury that was forbidden was only usury rice. Likewise, with Usamah bin Zaid, Zubair, Ibn Zubair, etc., explained things similar to Ibn Abbas. According to them, riba nasi’ah is a habit of ignorant Arabs and this habit occurs when giving debt to others.
If the debt is due, they will offer a debt whether it will be repaid or extended. If the borrower’s decision is extended then the capital and its additions will be multiplied, resulting in their debts over time will increase; continue to multiply which can be wrapped around the borrower. For those who cannot afford it, of course, it will be difficult to pay for it and will certainly stifle.