Usury and interest

[Master Minds]

Can anyone define usury in simple wordings? along with it tell the difference between interest and usury. I am confused as Islam forbids usury so how Islamic banking in Pakistan and other parts of world avoid or use this thing in an acceptable manner?
If possible, tell me also a daily life example of usury and interest other than banking.

 

[happyperson]

Can anyone define usury in simple wordings? along with it tell the difference between interest and usury. I am confused as Islam forbids usury so how Islamic banking in Pakistan and other parts of world avoid or use this thing in an acceptable manner?
If possible, tell me also a daily life example of usury and interest other than banking.

Usury is referred to interest in islamic terminology. In other banks the interest rate is fixed, this means that bank will provide the same amount of interest whether it makes a profit or loss whereas in Islamic banking the interest is variable and the amount depends. However, i am also not much clear with it so if i made any mistakes so sorry but that was all i know.

 

[Master Minds]

Ur explanation is very similar to that of what my teacher explained about usury and saving accounts in banking. However, i could still not understand the actual meaning of usury and interest. I appreciate your knowledge as it has made my concept of islamic banking clear to great extent. If anyone else wants to add something to it will be appreciated.
Thanks

 

[happyperson]

Usury is the islamic word for interest and interest is referred to the additional amount that a lender charges from a borrower.
For example if i lend you $5 for two months and then i ask you to return me $6 after the due time so i am charging $1 on my lending as interest to you.

 

[Master Minds]

thanks alot

 

[KingofthePaupers]

Can anyone define usury in simple wordings? along with it tell the difference between interest and usury. I am confused as Islam forbids usury so how Islamic banking in Pakistan and other parts of world avoid or use this thing in an acceptable manner?
If possible, tell me also a daily life example of usury and interest other than banking.

Jct: From http://johnturmel.com/poembibl.htm we get:
EZEKIEL
Ezekiel 3:18 adds responsibility,
God states his laws for life with his expected certainty:
"And when I tell the wicked man that "You will surely die,"
You will be held accountable if you don't warn the guy.
But if you tell him and he doesn't change his wicked way,
You will have saved yourself and he will be the one to pay."
In 18:5: "Suppose a man takes not much interest,
He takes no usury. He'll live! His actions I have blessed.
Suppose he has a son who takes excessive interest,
And lends at usury. He'll die! His actions I detest.
But if this son too has a son who doesn't do the same,
He does not take the pledge for loans, his greed he overcame.
He takes no usury nor interest that is too high,
He will not die for his father's sin, the soul that sins will die.
But if a wicked man turns from the sins he did commit,
He gives back what he took in pledge. His sins I will acquit.
Forgotten will be his offences when I come to judge,
Because of good things he does now, I will not hold a grudge.
But if a righteous man turns from my law to evil way,
None of his righteous deeds will count. He'll die! I do inveigh.
So cleanse yourselves of all your sins and cease to be such fools,
I take no pleasure in the death of men who break my rules."
Ezekiel declared that usury and interest,
Could have a different effect, there was a simple test.
If interest demanded is of something that can breed,
Such interest is payable and not sin I concede.
So if you lend a hundred head and ask to get two more,
That might not be excessive lending that He would abhor.
But if you gain all of the calves and he still owes you some,
That would be judged excessive, that is more than maximum.
And if the interest is on some silver or some gold,
It's usury because there are no babies to behold!
It's interest if principal can breed to multiply,
It's usury if principal cannot so classify.

Jct: So if the contract creates a mort-gage death-gamble game
of musical chairs with not enough money for all to settle debt,
it's usury. But if the amount of principal grows to match the
debt, it is not though it could be excessive interest, though
never usury.