Neco 2021 Islamic Religious Studies Question 18

Practice objective / multiple choice question 18 from the 2021 Neco Islamic Religious Studies examination.

Neco 2021 Islamic Religious Studies Objective / Multiple Choice Medium Difficulty
Question 18 NECO • 2021 • ISLAMIC_RELIGIOUS_STUDIES • objective

The Qur'an prohibits riba (interest). The Sunnah includes the Prophet's statement that any increase over the principal in a loan is forbidden. Scholars have used qiyās (analogical reasoning) to extend this prohibition to modern credit‑card charges that accrue interest on unpaid balances.\n\nA new digital lending platform charges a fixed service fee of \(5\%\) of the loan amount, payable regardless of how quickly the borrower repays. Using the steps of qiyās, determine whether this fixed fee is classified as riba. Provide a brief justification.

Answer Options

Correct Answer A. Not riba; the fee is permissible because it is not time‑based.
B. Riba; the fee is prohibited because any additional charge on a loan is considered interest.
C. Riba; the fee is forbidden as it resembles usury despite being fixed.
D. Riba; the fee is considered interest since it is a percentage of the loan amount.
Correct Answer
A
Correct Option:
Not riba; the fee is permissible because it is not time‑based.

About This Question

This is Neco 2021 Islamic Religious Studies Question 18. It is one of the objective questions from the 2021 Neco Islamic Religious Studies examination.

Difficulty level: Medium .

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