The Objectives of the Prohibition of Riba By: Elhadi Habbani

Preventing the use of business finances for Uselessness Purposes:

As said before in the first objective (Affirming realism), ignoring the purpose of finance application lead to finance unproductive useless purposes and activities that might not belong to business or what we can call it "futility" or "uselessness". Futility" and which might lead to definite delinquency because the purpose of finance will not be used into the main business of the firm and will add nothing to its asset, instead of that, it will create additional liability to the company.

Sending personal finance to where it belongs as a personal service:

Since, loan considered in Shariah as a personal finance or inter-relation between the giver a taker based on the act of charity and benevolence, it should remain a personal free of charge service not a business regardless the usefulness that the taker can gain from taking the loan. This concept can only be protected by the prohibition of Riba.

Re-channeling Business Financing to Production and Trade:

Since, business financing can only be done, in Islamic finance, through exchange and sharing Islamic contracts within which realism is occurred and value creation is targeted, the prohibition of Riba, in forms of unreal financing like loan, overdraft, and discount bills, will protect the whole economy from the inflation of the quantity and size of financing in a society above the actual needs of the real market of production and exchange.

Arabic Forum