Riba al-nasiah

Riba al-nasiah refers to a type of interest or usury in Islamic finance that occurs when a lender extends credit and charges interest on that loan. In this context, "nasiah" means delay or deferment, highlighting the notion of charging extra for allowing someone to postpone payment. Islamic law prohibits riba, as it is seen as exploitative and unjust, favoring profits from productive work rather than from lending money. Instead, Islamic finance encourages profit-sharing and ethical investment to promote fairness and social justice in financial transactions.