Riba

Riba refers to the practice of earning or paying interest on money, which is prohibited in Islamic finance. It occurs when a lender charges extra beyond the original amount, essentially generating profit from lending. Many consider Riba unfair because it can lead to unequal wealth distribution and exploitation, especially of those in need. Instead, Islamic finance promotes risk-sharing and equitable transactions, encouraging profit-and-loss sharing arrangements rather than earning money through interest. The concept aims to promote justice and fairness in economic dealings, aligning financial practices with Islamic moral principles.