Islamic finance and its role in combating usu-rious loans - a descriptive study

Abstract

This research aims to demonstrate and explain the role of Islamic financing for projects and its being an alternative to the loan system with conditional interest in advance that exists in banks and usurious institutions, One of the most important uses of money in the usurious commercial market is the loans and advances that the bank provides in exchange for a specific, conditional interest, As for Islamic banks, funds are used through various legitimate financing methods that suit all activities, whether commercial, industrial, agricultural, real estate, professional, or craft. financing activity is one of the most important activities in Islamic banks, as its returns represent the most important source of profits, as for the research method, a descriptive study was used in this research to explain the role of Islamic finance in combating usurious loans in banks and usurious institutions, through research, we reached results, some of which contradict financing in Islamic thought with traditional thought. Usury financing depends on conditional interest provided without bearing the risk, while in Islamic financing there is risk and lawful profit, it is committed to Sharia controls, while usurious financing does not adhere to what is permissible and what is forbidden. We presented proposals, including the need to pay attention to Islamic finance and avoid usury, encouraging projects to receive financing from Islamic banks and institutions, combating usury in all areas to obtain lawful profits, and opening Islamic banks and institutions to finance projects in an Islamic manner