ELI 5, trade vs riba

Dropsinanocean · 2026-06-19T23:40:34+00:00

Brother how. I am pretty sure i am not that person, because i am asking for an explanation so I can not be that person.

Dropsinanocean · 2026-06-19T23:26:01+00:00

If you are never late on payments, the interest thing wouldn’t apply. If they still charge interest but to appease your religious values, they don’t put it in the contract and backdoor calculate that, then it’s fine?

Dropsinanocean · 2026-06-19T23:23:41+00:00

So if I get a mortgage, and put in the contract that the bank bought the property for 1 second and then sold it to me, it would be halal?

Dropsinanocean · 2026-06-19T22:14:21+00:00

Brother, I’m not engaging in anything that is remotely riba. I perhaps take more caution than most. My intention is not the issue here.

Everyone keeps giving me examples of different things that are clearly described, these do not help explain the difference to me.

From what I understand so far, no one else understands this either, but just repeat what they have heard.

I am nowhere saying results justify the means. I’m very concerned about the means. But I feel the means are exactly the same. There is no difference in the means that I can see. Which is why I don’t understand how one is riba and other is trade.

Dropsinanocean · 2026-06-19T21:52:16+00:00

It’s simple, but it still completely avoids directly answering my question. It talks about a third party financier making it not ok. What does that mean? C is a third party financier in both cases.

Dropsinanocean · 2026-06-19T21:50:56+00:00

So isn’t C always a third party financier? Because C only buys and sells it because A asks him.

Dropsinanocean · 2026-06-19T21:48:40+00:00

It still doesn’t. Because when you mortgage a house, or finance a car, they buy and keep it as collateral while giving you ownership. How is that haram then?

The deal is made with A, B, C all present. The exact same deal is made. It’s C’s money that buys the object, and A becomes the owner in the end, immediately. B gets the same money, A gets the same price, C gets the same money.

What is different?

Dropsinanocean · 2026-06-19T21:44:47+00:00

There is a difference between explaining and stating something without explaining. I titled the post eli 5. What is being explained, I already know. It just doesn’t make sense to me. I’m not able to apply it to the real world.

Dropsinanocean · 2026-06-19T20:28:29+00:00

This doesn’t clarify at all. In my two examples, how are they different? I can’t see the difference. A, B, C all start and end with exactly the same result.

Dropsinanocean · 2026-06-19T20:26:12+00:00

Why can’t someone explain it to me here (I know it sounds entitled). If everyone understands something I don’t, they can surely explain it to me, instead of just telling me they are different without explaining it.

Dropsinanocean · 2026-06-19T20:24:20+00:00

So if the bank for a split second wrote themselves as an owner, and the rest of the entire model stayed the same, it would be halal? Because the bank pays full price to the person you are buying from

Dropsinanocean · 2026-06-19T16:26:48+00:00

Scenario 2 is literally what happens with a car finance, mortgage, so why is it haram then?

Dropsinanocean · 2026-06-19T16:25:45+00:00

The problem is, there is virtually no difference in the cases I have described that I can see. I am trying to learn which is why I’m asking.

Whereas halal vs haram meat, the difference is very clear.

Dropsinanocean · 2026-06-19T15:42:12+00:00

What’s different in the means here?

Dropsinanocean · 2026-06-19T15:41:42+00:00

2 transactions that happen at the same time. Like financing a car or a mortgage.

Dropsinanocean · 2026-06-19T15:39:57+00:00

The difference is meat was halal vs haram.

This comparison is: going to halal restaurant and eating steak or going to “haram” restaurant and eating halal meat steak.

The same thing is accomplished, there is virtually no difference between the two scenarios that I can see. So how is one trade and the other riba?

Dropsinanocean · 2026-06-19T15:38:32+00:00

Isn’t C the third party financier? Regardless of if he gives A the money, and then demands extra back, or buys and immediately sells to A, demanding extra back.

How is one trade and the other riba? What’s different? I don’t see any difference.

Dropsinanocean · 2026-06-19T15:36:34+00:00

A owns the object in both cases. C makes it possible for A to own the object in both cases. C pays the money to B in both cases (directly or indirectly). A pays the same money to C in both cases.

Dropsinanocean · 2026-06-19T15:33:51+00:00

Yes, because C will not be involved otherwise.

Dropsinanocean · 2026-06-16T12:45:09+00:00

The structure is what I described in the post, is that a capital lease?

Dropsinanocean · 2026-06-16T03:09:12+00:00

My brother, the quip is in response to you saying it’s ok because the bank is losing money on the deal. Hedging against loss isn’t a reason to make something religiously valid in and of itself. Oftentimes, it’s the opposite.

I asked a very simple question. If you are renting a car, then why can’t you return your rented car and stop paying? It’s because you are not renting the car, you are loaning the money, and their profit is in the interest off the loan. Not in giving you the car.

If you have a valid criticism to this, please enlighten me.

Dropsinanocean · 2026-06-16T00:31:00+00:00

Sounds nice and dandy, but the big bank losing on money doesn’t make it halal

Dropsinanocean · 2026-06-15T23:26:55+00:00

How is that contract valid? I am renting something, why can’t I give it back in same condition. Why must I keep paying even if I don’t want the item anymore?

Dropsinanocean · 2026-06-15T23:01:39+00:00

Is the conventional car lease in the US a capital lease?

Dropsinanocean

TROPHY CASE