Islamic law bans taking, giving interest

by claude solnik Dolan Media Newswires LONG ISLAND, NY--The Islamic banking industry first developed in the United States in the 1960s, but its roots go back much further. The Quran prohibits taking and giving interest, or Riba al-Nasee´ah, out of a conviction that people should be rewarded for work rather than access to cash. The Quran says, "You who believe, heed Allah and write off anything that remains outstanding from lending at interest if you are [true] believers." In other words, borrowing and lending are fine. But interest isn't. Habeeb Ahmed, chairman of the Islamic Center of Long Island, said the prohibition against interest goes beyond mortgages; some devout Muslims won't put money in bank accounts that yield interest, or will donate that interest. Some eschew credit cards or pay before interest accumulates on purchases. "Some people don't carry credit cards. Some take them as a convenience and pay as soon as the bill comes," he said. "They won't buy unless they can pay it off. You can have the credit card, as long as you don't utilize the interest part." Entire contents copyrighted © 2011 by Dolan Media Company Published: Thu, Aug 4, 2011