Sood aur Islami Banking - Interest and Islamic Banking - Dr Israr Ahmad
Dr. Israr Ahmad discusses the permissibility of interest (sood) in modern banking and financial practices, particularly regarding installment plans and profit margins. He argues that while jurists may permit such practices based on interpretations of Islamic law, the core principle of charging for delayed payment is fundamentally akin to interest. He clarifies that profit is legitimate when earned through genuine trade—buying and selling goods—but adding charges for the convenience of installment payments is impermissible. He acknowledges the prevalence of justifications within Islamic jurisprudence but maintains his firm stance against such practices, highlighting the potential for gradual escalation of charges over time. He also addresses the concept of profit limits in Islam and questions the banker's claim that an additional sum is simply profit, as it's tied to delayed payment.
