Riba (interest)

Riba, commonly known as interest, is the excess money earned from lending money over time, which is considered unfair in Islamic finance. It involves charging or paying additional amounts beyond the original principal, regardless of whether the loan is for a good or bad purpose. Many argue that Riba can lead to inequality, exploitation, and economic instability. Islamic teachings advocate for ethical financial transactions based on fairness and risk-sharing, encouraging investments that promote real economic activity rather than earning through mere lending. In essence, Riba is viewed as unjust profit gained without sharing in the effort or risk.