Theme: Description and types of Riba

The Prophet (ﷺ) said:

“The exchange of [1] gold for gold, [2] silver for silver, [3] wheat for wheat, [4] barley for barley, [5] dates for dates,[6] salts for salts (should be against) equal for equal amount and (payment should be made) hand in hand. If (the item of the same) genus differs, then sell as you wish if the payment is made hand to hand”

Reported by Ubada bin as-Soomit رضي الله عنهما
(Source: Muslim No.3853)

Building up on last week’s hadith (Bukhari, No. 2050) on Riba al-Fadl as one the first type of Riba in a sale contract that Muslims ought to avoid, this hadith, describes another type of Riba, which is known as Riba al-Nasiah. Also, it outlines the 6 different ribawi commodities which later scholars rely upon to deduce the cause (‘illah) for commodities to have Riba attributes (ribawi).

All the four mazhab unanimously categorized the first two items (gold and silver) under the 1st genus set of genus and the last four items (i.e. wheat etc.) under another genus set. However, all the four mazhab differ on how they define the attributes of respective genus. The Shafiites defined the 1st  type of genus, namely gold and silver etc., as being the standard of value and medium exchange. They later defined the 2nd genus, namely wheat etc., as consumable food items.

In short, Nasiah means to postpone, and Riba al-Nasiah occurs when the exchange of different Ribawi commodity item from the same genus against themselves happens with deferred payment. For example, buying a piece of gold jewellery on credit. Stay tune for part two this friday where we expound further!

To add on to part 1, (1) Riba al-Fadl is the inequality of quantity between the ribawi counter values, and (2) Riba al-Nasiah is the deferment of one of the ribawi counter values which share the common ‘illah. The table below provides an overview of Riba al-Buyu’ (Riba in the sale contract).

*no required conditions

1] One condition to be observed: for Riba al-Nasiah not to occur (ii) spot delivery of the ribawi counter values.

[2] Two conditions to be observed for Riba al-fadl not to occur: (i) equal amount of quantity between ribawi counter values, (ii) spot delivery of the ribawi counter values.

Imam Ghazali, in his book titled “Ihya’ Ulum al-Din” (Revival of Religious Sciences), mentions that: “there is no reason to the perpetual act of sin.. except for negligence and desire, and there is no (way) opposing negligence.. except knowledge, and there is no (way) opposing desire.. except patience in stopping the means for the desire”.  He then further mentioned several ways to break one’s act of sin, and one is to remember what the Quran and Hadiths have injuncted and warned on the danger and punishment of those sinful acts.