When people use to ask me as “why interest is prohibited” in our society? Look at the banks structure, we have some money, we are going to open an account and deposit our money, probably hard earned, to make some money out of it? They usually give me few examples such as “I am 65 years old retired government officer, I have received approximately rupees 500,000 at the time of my retirement, and now I feel that I don’t have some skills and strengths to invest that money in any business, hence I am putting them in a bank as a time-deposit where I could earn some money at the rate of 5% or 6% per annum.” I would get some money to bear my living expenses as well as there wouldn’t be any risk and my money would be secured and could be enchased any moment. If I invest it in any business, say if I open a shop there’s no guarantee that it would earn me some money to manage my expenses and the risk of failure remains there for ever!

I never use to answer them with logics and arguments inviting them to learn Islamic finance concept. I only tell them that there are many Islamic banks in Pakistan, you may invest your money in such Islamic financial institutions and get profit at the same rate of interest, to avoid interest which is a prohibited concept in Islam!

The response was not very much positive!

Posted via email from IBFN (Islamic Banking & Finance Network) at Posterous