I am going to q&a live stream of one scholar on 16 nov.
Who belives that home loans or any other commodity loans are not riba.
His reasoning is:
hat they are not giving you money. Because if its accepted that they gave you money then you can use it for any purpose. But its not, you are specifically buying a house. So they are actually buying you a home, they are not giving you money. And on that home they are charging you, like a rent but on terms that you will get home after some period. So there is no charge on the money, but on the home they bought you. Its like an EMI purchase.
What i have think of to ask/counter him is,
According to you they bought me a home from "their money" and i am paying rent. Okay. But what if their money is not their money and they printed out of nothing? That is fractional reserve banking on fiat. They do not have any money but they credit it. In islam is it allowed for any entity to create money?
Any suggestions would be appreciated
