03-22-2004, 04:20 PM
dear sumaaan, i m little bit confused about the difference b/w Riba and Interest,
take a look at your example of investment in the business started by the the friend, if somebody invests in a business, the return on that investment is dependent upon the profit earned by that business, in case of loss you will not earn any thing, even there is a risk of loss of your original investment.
u cannot compare the above investment with the amount invested in a bank, where there is no risk of loss of your original investment moreover the return is predecided and guaranteed even if the bank suffers loss in the business.
SMR
take a look at your example of investment in the business started by the the friend, if somebody invests in a business, the return on that investment is dependent upon the profit earned by that business, in case of loss you will not earn any thing, even there is a risk of loss of your original investment.
u cannot compare the above investment with the amount invested in a bank, where there is no risk of loss of your original investment moreover the return is predecided and guaranteed even if the bank suffers loss in the business.
SMR