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There is nothing wrong in interest

Reader comment on item: Be Careful Investing in Islamic Financial Institutions
in response to reader comment: There is nothing wrong with Islamic Finance

Submitted by Prashant (United States), Nov 21, 2011 at 01:58

Dear Malik: Interest is nothing but the cost of "renting" the money. If renting money is bad so is renting cars, houses, cutlery or anything else.

Think logical. If I rent you a car for $200 a week and after the week ends you return the car but not the money what do I do? Do I enter profit sharing with you? No, I just charge you interest until you are able to return the money. Nothing wrong with that.

Now take the car out of the picture. You need $200 from me. What do I do? Do I enter profit sharing with you? (because there may not be a profit to share; you might be needing the money to pay your bills until you get your salary). So I gladly give you the money for a small "rent". We call this rent interest. It is a perfectly good thing to do.

Those who oppose interest based financing have not thought deep enough.

Submitting....

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