Understanding of Riba in Islam, Types of Riba, Legal Basics and Riba Example

1. Usury Payables
The definition of usury debt is the act of taking additional benefits from a debt. Usury debts can be divided into two, namely:

Riba Qardh, which is taking certain benefits or levels of excess that are signaled to the recipient of the debt (muqtaridh). Usury Jahiliah, namely the addition of debt is more than the principal value because the recipient of the debt is unable to pay his debt on time. 2. Usury Buy and Sell
Is that usury buying and selling? Usury buying and selling often occurs when consumers buy an item in installments. The seller establishes the value of the item because the consumer buys it in installments.

Riba buying and selling can be divided into two, namely:

Riba Fadhl, namely the practice of exchanging similar items with different levels or doses, while the items exchanged are still included in the type of ribawi goods.
Riba Nasi'ah, which is the suspension of the delivery / receipt of ribawi items that are exchanged with other types of ribawi goods. Riba nasi'ah occurs because of differences, changes, or additions between the items delivered at this time and those delivered later.

Examples of usury in society
After understanding what is usury and its legal basis, of course we also need to know what are the examples of usury that have been done everyday. The examples of usury practice are as follows:

1. Conventional Bank Interest
Interest applied by conventional banks turned out to be included in the practice of usury. When we borrow funds from the Bank, we will be charged interest every time we pay the loan installments.

This (usury) also occurs in other financial institutions, such as financial institutions. When we buy a motorized vehicle or property in installments, we will be charged interest, and this includes the practice of usury.

2. Loans With Terms
When we want to borrow money from other parties, often the loan is accompanied by conditions. For example, interest or other things as a condition so that the owner of the money wants to lend it to someone else.

Another example, for example, a relative wants to borrow money from you, then you give a condition to give a loan that is to be willing to pick you up and take you every day. Things like this are already included in the practice of usury which is prohibited.

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