Procedure of Repayment of Loan

by Azam Khan Lahore, Lahore, Monday, April 14, 2014, 16:31 (1869 days ago)

فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ

But if you do (it) not, then be apprised of war from Allah and His Apostle; and if you repent, then you shall have your capital; neither shall you make (the debtor) suffer loss, nor shall you be made to suffer loss.

If a person lends 15 cows for a period of five years as a loan , the borrower has to rerun the 15 cows after five years. The borrower for the purpose returning has to buy the cows for which he has to pay more than the the price prevailing rates of five years back. In the same way if a lender gives a loan of 1000/ dollars for a period of five years , the value of 1000/ dollars
will be 950/ dollars due to inflation (Normal devaluation of currency which takes place in market)Therefore the borrower has to pay 1050/ so as to compensate the lender to off set the value of devaluation by 50/ dollars which can not be called interest or Riba. By paying 1050/ after five years he is actually paying 1000/ dollars only of its original value.
Forum Bros & Sisters to please give your opinion if the above said process is right. Thanks

Asslam alikum

by ahmadkhan12, Tuesday, April 15, 2014, 10:44 (1868 days ago) @ Azam Khan Lahore

MAsha Allah

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