6.5 Trade and Finance in Islam

• Islamic rules on lending: qard hasan, recording debt (Q2:282), prohibition of riba
• Duties of the borrower and lender; Islamic financial products
• Role of consumer protection agencies

• explain the Islamic rules on borrowing and lending money
• practise Islamic teachings on borrowing and lending money to earn rewards from Allah (S.W.T.)
• describe the role of consumer protection agencies in enhancing integrity
• appreciate the Islamic concept of borrowing and lending money as a means of safeguarding equity in society

“Why should Muslims observe the rules of borrowing and lending money?”

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1. Lending in Islam: qard hasan
   40 min · 1 practice tasks · quiz
   Explain the Islamic view of lending as a good deed (qard hasan) and the duty to give a debtor in hardship more time.
2. Recording a debt (Q2:282)
   40 min · 1 practice tasks · quiz
   State the rules in the verse of debt (Q2:282) and practise writing a simple loan agreement.
3. Riba (interest) is forbidden
   40 min · 1 practice tasks · quiz
   Explain the prohibition of riba (Q2:275-279), compare interest loans with qard hasan, and calculate the extra cost of interest.
4. Duties of the borrower and the lender
   40 min · 1 practice tasks · quiz
   Describe the duties of borrowers and lenders in Islam and role-play borrowing and lending while observing the rules.
5. Islamic financial institutions
   40 min · 1 practice tasks · quiz
   Describe how Islamic financial institutions work without riba: murabaha, ijarah, musharakah, mudarabah and takaful.
6. Consumer protection and borrowing
   40 min · 1 practice tasks · quiz
   Describe the role of consumer protection agencies in Kenya and borrowers' rights, and appreciate Islamic lending as a safeguard of equity.