Types of Riba (Interest/Usury) - Riba al nasiah and Riba al fadl

Short and Simple videos on Islamic finance.

This video is about two types of usury in Islamic finance (Riba in Islamic finance)

The usury is of two kinds:
First, Riba al-nasiah: This riba is based on money lending; the lender and
borrower agree upfront on a fixed amount of money to be paid as a reward for the money lent.

Second, Riba al-fadl: This riba is the excess that arises during an exchange of homogenous commodities in unequal quantities or qualities. If you have low - quality gold, for example, and you want to purchase high-quality gold, you can’t exchange the two and pay the other party cash to make up the difference in value.

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