Riba is an Arabic word which literally means ‘increase’, ‘growth’, ‘to rise’ and ‘to become lofty’
From Shariah (Islamic law) point of view, however, riba technically refers to the ‘premium’ that must be paid by the borrower to the lender along with the principle amount as a condition for the loan or for an extension on its maturity.
(M. Umer Chapra, 1992)
Riba (interest) = Excess over loan (lending)
Profit = Excess over buy and sell (trade)
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