How Islam views money. Part 1 of 5 articles viewing what the world’s 5 major religions say about money.
According to the teachings of Islam, People hold all money in trust so the rich, who have been blessed by Allah as a test, can use it to does God’s work. They should not squander nor hoard it.
- “Those who hoard up silver and gold and spend it not in the way of God, unto them give the tidings of a painful doom” (Koran 9:34)
The 3rd pillar of Islam, the Zakah states that all Muslims must given an annual amount to certain causes specified in the Koran. This is normally 1/40th of all assets once expenses have been met.
Interest is forbidden by the Quran as unjust. It is argued that the misfortunes of a fellow human being should not be exploited for gain. This has given rise to Islamic banking.
Under Islamic banking, instead of guaranteeing a fixed rate of return (interest in the traditional sense), an Islamic bank/lender and the borrower enter into an agreement that clearly spells out the way in which profits or losses are to be shared between the parties from the venture are to be financed. The usual relationship between creditor and debtor that we are accustomed to in the West is turned on its head. Expected rates of return from projects or investments are used instead of interest rates.
Islam and Debt
- “If the debtor is in a difficulty, grant him time till it is easy for him to repay. But if ye remit it by way of charity, that is best for you if ye only knew.”(Qur’an: 2.280)
It is Islamic teaching that, If a debtor meets with distressed circumstances, relaxing repayment conditions or even the forgiveness of the debtor is recommended as gestures that will earn the creditor spiritual reward.
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Have you any views about the contrasting attitudes towards money and debt between religious groups?
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