I know many people say interest is haram or not but can someone tell me in detail whether it is haram or is it not?
The thing is, if it is haram i am not able to understand something. Here is the scenario that i put in front of you.
Suppose i give 1000rs loan to someone for an year. Let say in 1000rs i could have bought 1kg of gold (suppose). After the year is passed, the money is returned to me without interest which is 1000rs. Now after 1 year due to inflation the price of gold rises and now in the same 1000rs i am able to buy only 0.75kg of gold.
Dont you think it will be a bit unfair on the person who gives the loan in this scenario? Shouldn't he be compensated?
Anyway, would be great if someone can tell me if interest is haram or not. If yes then why.