Trade, Interest, and Loans in the Light of Islamic Teachings: Jurisprudential Rulings, Societal Impacts, and Contemporary Commercial Analysis

اسلامی تعلیمات کی روشنی میں بیع، سود اور قرض: فقہی احکام، معاشرتی اثرات اور معاصر تجارتی تجزیہ

Abstract

This research study offers a detailed jurisprudential and socio-economic analysis of trade (Bayʿ), interest (Ribā), and loans (Qarḍ) in light of Islamic teachings. Trade is encouraged in Islam as a lawful economic activity, provided it is based on mutual consent, transparency, and free from deception and uncertainty. The study categorizes various types of Bayʿ such as Bayʿ Muṭlaq, Bayʿ Muqāyiḍah, Bayʿ Ṣarf, and Bayʿ Salam, elaborating their conditions and juristic rulings. It also addresses impermissible transactions like Bayʿ Muḥāqala, Bayʿ Muzābanah, and Bayʿ Mukhābarah. Interest (Ribā) is strictly prohibited due to its exploitative nature. The paper explains the classical definitions of Ribā al-Nasīʾah and Ribā al-Faḍl, distinguishing them from lawful profits in trade. Jurists' and Mufassirīn’s positions are cited to establish a firm stance against usury, reflecting on the societal harms of interest-based economies. Regarding loans, Islam promotes Qarḍ as an act of benevolence. The research elaborates on the borrower-lender relationship, rights, and responsibilities in the light of Qurʾānic injunctions. The paper also explores contemporary commercial issues, including property dealings, earnest payments (Bayʿānah), prize bonds, and commerce during Hajj days, all through a juristic lens. By integrating classical fiqh with modern economic practices, the research proposes a balanced Islamic commercial model that ensures justice, prevents exploitation, and promotes ethical financial conduct in society.