The Objectives of the Prohibition of Riba By: Elhadi Habbani

Section four: Implications of the objectives of the prohibition of Riba:

[Not for profit financing; lending, loan, personal financing;

From the previous sections, we can understand that one of the most important implications of the prohibition of Riba in Islam is that loan or lending is not for profit because it has no capability to make increment or additional value and so it considered as charity or benevolent based on an inter-personal relation between lender and borrower such like any other contributory contract, and so, cannot be used for commercial purposes. Nevertheless, this fact doesn't mean to close eye, and continue seeking for suitable structured financing instruments while observing and keeping eye on the objectives of Shariah in general, and of the prohibition of Riba in exact, and in the same time seek to incentivize not for profit financing particularly in the case of current account in Islamic banks.

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