Advantages And Disadvantages Of Usury

Interset and usury

Usury is a kind of haraam transaction in selling and buying and all economic matters related to trade and money.

In view of the many economic and social damages involved in usury, The following are some of the economic, social and moral disadvantages of usury:

The economic impact of usury:

1- The weakness of the workers ' activity because of the concerns and the sorrows as a result of their borrowing interest, especially in consumer loans.

2 - weak purchasing powers of the poor members of societies to the poverty they suffered from usury, leading to the recession of goods. 3 - Encouraging the rich to save and not to consume, which leads to the depression of goods also, unlike if this money is the hands of the poor, it is directed to consumption and this brings useful benefit to the community. 4. Increasing wealth of the rich and increasing the poverty of the poor in most cases of interest-bearing debt. This is valid for a debt that is for a consumer purpose, and each investment loan lost its owners or earned less than the interest rate.

5 - usury causes many of the economic crises that affect the society because riba-based banks tend at the time of prosperity to expand lending by opening credits that exceed their balance much, and in a recession, riba-based banks tend to narrow lending and may be stopped. This leads to shaking the economic system and the emergence of crises. 6. Economic inflation, which is the increase in the prices of goods and