Advantages And Disadvantages Of Riba

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Riba is an extra or surplus or not the same scale or measure during the exchange of certain items (ribawi goods). In other word, riba means the value added of a loan required by the lender or promised by the borrower while in the exchange of some goods and currencies, it means the difference in value due to the different quantities or exchange time differences. Riba comprises of debt (riba Ad-Duyun) and usury through the exchange of ribawi goods (riba Al-Buyu ').
Ribawi goods consisting of two groups of gold and silver and basic food comprising wheat, barley, tamar and salt. In general, riba is divided into two main types, namely the riba that takes place in the course of debt receivables known as Riba Al-Duyun and riba that occurs in the deal of trading known as Riba Al-Buyu '.
Riba Ad-Duyun is the riba that happened in the debt loan agreement and this type also happens in two situations. The first condition occurs when additional rates or benefits are required on lending. These conditions are made at the beginning of the loan contract imposed by the lender to the borrower and known as Riba Al-Qard. The second situation occurs when additional rates or benefits exceed the amount of principal loan imposed as the borrower fails to pay the loan amount set at the agreed period. It is also known as Riba Al-Jahiliyyah.
Riba Al-Buyu’ refers to riba that occur in the sale and purchase of ribawi goods and occurs in two circumstances. The first condition is the sale or exchange

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