r/IslamicFinance

My Experience With Riba (interest). A Lesson I Hope No One Else Has to Learn

Never start a business with interest-based financing. If you have a good relationship with Allah, understand that His tests can sometimes be extremely difficult. I never imagined I would reach a stage where life would feel so hard and death would seem easier. Yet here I am, sharing my story in the hope that it prevents someone else from making the same mistake.

A few years ago, my business was doing very well. Then some of my business partners scammed me and disappeared. I was left alone to deal with vendors and keep the business running because it was still operating successfully.

To save the business, I took out loans. At first, I convinced myself that they were not riba. Later, I asked a scholar, and he confirmed that they were indeed interest-based loans. As soon as I learned that, I stopped taking them.

But from that point on, everything began to fall apart.

My business collapsed, even though I hadn't made the kind of mistakes that should have destroyed it. To repay people, I sold my car, then my motorcycle, and eventually almost everything I owned. During all of this, I had just gotten married. Everything was happening at once, and I didn't know how to cope. 

Over the last four years, I have been struggling just to repay my debts. I have already paid back around 60% of a loan that was close to $8,000, but the remaining amount feels impossible to clear. It isn't even a huge debt compared to many others, yet because of riba, it has become one of the hardest battles of my life.

Today, whatever I earn goes straight toward repaying my debts. There are times when I cannot even afford a proper meal. Just last night, my child needed diapers, and I had to borrow a small amount from a friend to buy them.

Buying new clothes has become a luxury. Eid comes and goes quietly because I cannot afford new clothes for myself or my family. These may seem like small things, but they are painful reminders of how much life has changed. It often feels as though the joy has disappeared from my life. I honestly cannot remember the last time I truly felt happy.

What makes it even harder is that I was once a successful entrepreneur. Today, many people see my failure and assume I must have lacked intelligence or made careless decisions. They don't know the full story or the battles I've been fighting for years. Living with that judgment is incredibly painful.

I am sharing this not to ask for sympathy, but to remind others that what appears to be an easy financial solution can sometimes lead to years of hardship. This has been my personal experience, and I pray that no one else has to go through what my family and I have endured.

From the outside, interest (riba) looks like an easy solution. But once you're trapped in it, everything begins to fall apart. Life becomes difficult, and sometimes giving up seems easier than carrying on.

I have knocked on many doors. I approached NGOs, mosques, and different people, asking if someone could lend me money without interest so I could repay it in monthly installments. Unfortunately, I couldn't find anyone willing to help.

Despite everything, I continue to pray. Every day, and especially in Tahajjud, I ask Allah to make a way out for me. My wife has been understanding, and whenever I feel completely broken, I look at my child and remind myself that I have to keep going.

Please, never treat interest as an easy solution. Face the hardship at the beginning, but do not fall into the trap of riba. I sincerely pray that no one has to go through what my family and I have experienced. May Allah protect us all, forgive us, and grant everyone halal rizq and ease. Ameen. 

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u/WillingBudget9423 — 1 day ago

Is it forbidden to take Student Loan

I have taken a student loan for 3 years - I took it when I was 19

I have been relying on it while living away, I have since moved home

I don’t have to pay rent or bills
But I still take the loan and buy things like go to the mall shopping etc

I genuinely feel guilty and bad, I have no intention of paying the money back- Since I have no intention of working ( because I am a female and don’t have a car, so the only way is to take public transport to work - which I live in a high crime area and so many lustful men around - as well islamaphobia so I can’t even wear the full islamic wear ) It is highly not possible for me to work, I really don’t want to. I’d rather live in a muslim country and live at home in peace

I am planning on moving to a muslim country

What can I do since I do need it ( for paying for private transport to university and other things )

Should I not take it? Is it haram ? I’m very very scared

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u/Ok-Crazy-5262 — 2 days ago

Fiat interests are new: it's normal that the scholars do not agree on what is riba

https://reddit.com/link/1umzq4p/video/45luegv065bh1/player

There is no such thing as 'classic scholar' opinion on fiat interests. Fiat is an experiment of the 70s. The opinion that all fiat interests are riba was literally issued in 1985, by a committee (OIC) formed 4 years before that. There is a massive amount of literature that disagree with that opinion (Farzul Rahman, Abdullah Saeed, Muhammad Khalid Masur, etc), and believe it is the trade exploitation that is riba. Fiat money is a new and complex object, it is expected that people with various backgrounds have various opinions. Islamic finance is just one of the many reactions to that invention. Do not expect it to be static, do not be dogmatic, be more opened to the differences that exist on this. They are legitimate and well documented.

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u/Dey_exMachina — 2 days ago
▲ 6 r/IslamicFinance+1 crossposts

Survivorship Bias is one of the biggest reasons people have unrealistic expectations about investing

One thing I’ve noticed is that almost every investing discussion revolves around the winners.

People constantly talk about buying Apple early, holding Amazon through all the ups and downs, or getting into Nvidia before AI took off.

But almost nobody talks about the thousands of companies that looked just as promising and either underperformed, went bankrupt, or slowly faded away.

That’s known as survivorship bias in investing.

When all you hear about are the success stories, it’s easy to believe that finding the next 100x stock is much more common than it actually is.

The reality is that for every Apple or Nvidia, there are countless companies that never made it. We just don’t remember them because they disappeared from the conversation.

This is why I think it’s important to study both the winners and the losers. Ask questions like:
Why did this company become one of the biggest businesses in the world?
Why did another company with similar excitement fail?
What assumptions were wrong?
Were there warning signs investors ignored?

Looking at both sides gives you a much more realistic understanding of risk, probabilities, and what successful investing actually looks like.

The goal isn’t to eliminate risk, that’s impossible. It’s to make decisions based on the full picture instead of only the stories that survived.

Most new investors suffer from survivorship bias. Make sure you don’t fall for it inshaAllah.

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u/snasir786 — 3 days ago

If a bank verifies you can repay, why do you carry 100% of the downside?

Had a debate here recently I can't stop thinking about, so I want to throw it to a wider group.

The setup: a bank checks your income, employment, and history, decides you can repay, then structures the loan so that if things go wrong you eat 100% of the loss and the bank is fully protected by collateral. My question: if the bank is that confident, why does it need zero downside? And if it needs zero downside, how confident was it really? A rigorous affordability check that still dumps the entire risk on the borrower feels less like risk management and more like risk dumping.

The pushback I got was: "risk-sharing only works for startups, because a startup makes a profit the investor shares in. A house or a car doesn't return a profit, so it doesn't apply."

I think that's backwards:

  • The point of risk-sharing was never the profit, it's the loss structure. Debt is designed so the borrower bears the first losses. Buy a $100k home with an $80k mortgage; a 20% price drop wipes out your entire $20k while the lender is untouched (Mian & Sufi call this "levered losses").
  • Risk-sharing home finance already exists. Islamic diminishing musharaka has the bank co-own the home and share the downside. And mainstream economists proposed the same thing to prevent 2008: Mian & Sufi's "shared-responsibility mortgage" and Robert Shiller's "continuous workout mortgage" both cut the borrower's balance when local prices fall.
  • The real payoff is incentives. A lender that shares your downside actually wants you to succeed and will restructure instead of foreclosing, exactly how a VC behaves.

Genuine questions:

  1. Does the "a house doesn't profit, so risk-sharing can't apply" objection hold, or does it miss the point?
  2. Would banks underwrite better and foreclose less if they had skin in your outcome?
  3. Why haven't risk-sharing mortgages gone mainstream despite top economists pushing them?

I wrote up the full argument with sources (Mian/Sufi, Shiller, the 2008 data, Islamic finance) here if useful: https://www.rashadbayram.com/blog/risk-sharing-not-risk-dumping?utm_source=reddit&utm_medium=social&utm_campaign=risk_sharing_article — but I'm mostly here for the counterarguments. Where am I wrong?

u/brashad78 — 3 days ago

How to halal invest £500 a month to get more back by December 2027

How can I invest money monthly in a halal manner as I have a target of a certain amount of money to be saved by the end of 2027, to then use that money for a conversion on my property.

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u/No_Secret2322 — 3 days ago

I Chose Islam and Lost My Family, My Home, and My Financial Security. Now I'm Struggling to Survive.

I want to share my story because lately I feel like I'm carrying more weight than I can handle, and I honestly don't know what to do anymore.

A few years ago, my life looked perfect from the outside. I came from a wealthy and respected family. I was probably the most loved member of my entire extended family. My parents loved me, my grandparents loved me, my uncles, aunts, and cousins all treated me with affection. I never had to worry about money because my father took care of everything. I was studying medicine, had my own Kia Seltos, and spent my time traveling across India with friends. Sometimes I would go on trips for days, sometimes for weeks. Life was comfortable, secure, and predictable.

Back then, I never imagined that one decision could completely change my life.

One of my closest friends was a Muslim named Aslam. He wasn't someone who constantly preached or tried to force his beliefs on me. We were simply good friends. Sometimes our conversations would naturally drift toward religion, philosophy, God, and the purpose of life. He would explain Islamic beliefs whenever I asked questions, and I would listen. At first, it was just curiosity. I wasn't looking to change religions. I wasn't trying to rebel against my family. I was simply interested in understanding different perspectives.

As time passed, those conversations became deeper. I started reading more. I began watching lectures and researching different religions. One thing I always struggled with, even before meeting Aslam, was idol worship. I never openly discussed these thoughts with my family because I knew how sensitive the topic was, but internally I found myself questioning many things. The more I researched, the more questions I had. Instead of finding reasons to stop searching, I kept finding reasons to continue.

Then something happened that completely changed my life.

One night I had a dream unlike anything I had ever experienced before. It felt more real than reality itself. In that dream, I found myself standing in a beautiful place filled with peace. The sky looked brighter than anything I had ever seen. The atmosphere felt pure and comforting. Then an angel-like figure approached me and handed me a small purple stone coin. It wasn't made of gold or silver. It was a beautiful deep purple stone.

Without anyone explaining it to me, I somehow understood that this coin was a pass. Ahead of me stood a gigantic white fortress unlike anything that exists in this world. It was magnificent beyond description. As I walked toward it, I heard birds whispering around me. Somehow I could understand what they were saying. They kept repeating that I had received a pass for Jannah.

Then I woke up.

For days I couldn't stop thinking about that dream. Every detail remained vivid in my mind. I replayed it over and over again. It affected me deeply. Whether people believe dreams have meaning or not, that dream changed something inside me.

After months of studying, questioning, and reflecting, I eventually accepted Islam. Nobody forced me. Nobody paid me. Nobody manipulated me. I made the decision because I genuinely believed it was the truth.

Unfortunately, that decision came with consequences I never expected.

When my family found out, everything changed. Arguments started immediately. The same people who once celebrated every achievement of mine suddenly looked at me differently. Family gatherings became uncomfortable. Conversations turned into confrontations. There were tears, anger, pressure, and endless attempts to convince me to change my mind.

I tried explaining that I wasn't doing this to hurt anyone. I wasn't rejecting my family. I wasn't trying to disrespect anyone. I simply couldn't force myself to believe something that I no longer believed.

Eventually things reached a breaking point.

My father gave me an ultimatum.

Either return to my previous religion or leave.

I still remember how painful that moment felt. This was the man who had given me everything. He paid for my education, supported my dreams, and loved me throughout my life. Yet suddenly I was being asked to choose between my family and my faith.

I chose my faith.

And from that moment onward, my life changed completely.

What people don't realize is that losing your family isn't just an emotional loss. It's also a financial one.

The moment I was on my own, reality hit me harder than I expected. Bills started piling up. Daily expenses that I never had to think about suddenly became my responsibility. Credit card bills kept increasing month after month. Interest kept accumulating. What started as manageable expenses quickly turned into a mountain of debt.

I'm not a businessman.

I'm not employed.

I'm still a medical student.

I had no stable source of income.

Every morning I would wake up thinking about money. Every night I would sleep worrying about money. My phone became a source of anxiety because every notification could be another reminder, another bill, another payment due, another problem waiting for me.

The hardest part wasn't even the debt itself.

The hardest part was dealing with financial problems while already fighting emotional, family, and spiritual battles at the same time.

There were days when I genuinely felt overwhelmed.

I kept telling myself that if I could just solve the money problem, I would be able to breathe again.

So I prayed.

I prayed every single day.

I asked Allah to create a way out for me.

I asked for a miracle like that happened on the battlefield of Badr.

I asked for relief.

I asked for help.

I asked Him to end my financial problems because I already felt exhausted fighting every other battle in my life.

Every day I hoped something unexpected would happen.

A door would open.

An opportunity would appear.

Some solution would arrive.

But the bills kept coming.

The debt kept growing.

And the pressure kept increasing.

Recently, someone offered me a job at a cancer hospital. It felt like an answer to my prayers. For the first time in a long time, I could actually see a path forward.

The problem is that they want me to join after two months.

Two months.

To some people that might not sound like much.

To me, it feels like a lifetime.

Because my biggest challenge right now is surviving until then.

Every day has become a question mark.

How do I manage my expenses?

How do I handle my debt?

How do I keep moving forward without giving up?

Sometimes I feel embarrassed even admitting this, but there are moments when I wish someone would simply help me financially and give me enough breathing room to survive until I start working. Not because I want luxury. Not because I want comfort. Just because I want a chance to stand on my own feet without drowning before I even reach the shore.

Recently, my father sent a message through a mutual friend.

The message was simple.

If I return to my previous religion, everything will be forgiven.

I can come back home.

My family will accept me again.

The love will return.

The support will return.

The comfortable life will return.

Everything can go back to the way it was.

And now I feel trapped between two worlds.

On one side is my family, my childhood, my comfort, and the life I once had.

On the other side is the belief that I sacrificed everything for.

I don't know what the future holds.

I don't know how my story ends.

I don't know how I'll survive the next two months.

I don't know when my debts will finally be cleared.

I don't know whether my family will ever truly accept me again.

What I do know is that I'm tired.

I'm trying.

I'm praying.

And I'm holding on.

Before ending this post, I have one more question.

For those who have gone through a crisis of faith, financial hardship, or both, which Islamic preacher, scholar, or teacher would you recommend following? Someone who is balanced, knowledgeable, and willing to address difficult questions honestly. I feel like I need guidance right now more than ever.

Again I know this is a test, I know how different prophets (A.S) had different tests like Ibrahim (A.S) was asked to sacrifice his own son for whom he prayed for yrs, so I'm not put into such a big test but my imaan is also not so huge as him, I want to learn more, know the seerat of all prophets and sahaba (Radhi Allahu Anhuma). I basically love history, also want to know the Ottoman history, know more about Khalid bin Waleed, Umer bin khattab, Ali Murtaza and many other great great sahaba Radhi Allahu Anhuma. But I'm hating to get struck in different problems, I just want to get rid of these financial issues, I'm soo much frustrated because I'm not used to this feeling and problem.

I just want you brothers and sisters to help me in anyway like atleast show me the way to get it solved. For many this is like 3000$ but here in India it is 3L which is way too much. I mean I'm also hating my country because of no money making opportunities during the times of emergency and the people's mindset here is just sick.

If you've read this far, thank you.

And if you have any advice, I would genuinely appreciate it.

Jazakallahu Khairan Kaseera.

Fi Amanillah.

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u/AncientOil2109 — 4 days ago

Investing in stocks instead of ETF

Salam, I was investing in ETF like SPUS, SPWO, MNZL, but as I go through their holdings, they have many companies rhat are either listed as Not Halal by various screeners, or they have companies like MSFT, APPL who just dont resonate to the ethics of a muslim.

Im thinking of instead investing in 15-20 individual stocks that are both halal and also ethical from a Islamic POV. Can you help me with some names? My goal is long-term gains so I invest in small amounts and happy to let it sit

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u/SSDarkSlayer — 4 days ago

July 2026 Shariah-compliant stock picks — last quarter returned +38%

Salaam All,

Monthly picks as usual, all from S&P 500 Shariah Index (SPUS).

DD — DuPont de Nemours, AMAT — Applied Materials, MRVL — Marvell Technology, GLW — Corning, LRCX — Lam Research

Full semiconductor and advanced materials sweep this month. Complete rotation from June — that's purely where the momentum signal is pointing, no manual sector calls.

Last month's picks (MU, SMCI, CRWD, FTNT, NTAP) returned -2.6%. SMCI dragged at -36%, but MU (+18.9%) and FTNT (+11.3%) held up. For context here's last month's picks posted here: [June picks post]

Looking at the last quarter (Apr–Jun): April -3.9%, May +47.6%, June -2.6% — netting +38.2% over three months. One flat month doesn't erase the trend, but past returns don't represent future results. Posting every month so the track record builds transparently over time.

Curious what others think of this month's picks.

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u/ImAqui — 5 days ago

Riba: rich vs poor.

I am confused as to why people say riba makes the rich richer and keeps the poor poorer.

Say there are two Muslims in the West. One rich and one poor. The rich Muslim (due to family wealth, etc…) is able to buy a home without riba because they have the capital; whereas, a poorer Muslim cannot buy a home as riba is haram. In the West, we have seen asset prices increase dramatically and this has led to those who did not take riba poorer while the rich Muslims who can buy a home without riba is richer. Ironically, this has made the poor poorer and the richer richer.

There is no doubt riba is haram but can someone solve this dilemma for me?

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u/FollowingMundane7233 — 7 days ago

Investing in Nester, Gatehouse & ArRayan

Asalamalaikum,

I'm a real beginner to investing so had a few questions regarding the afore-mentioned platforms as Nester offer a IF-ISA, Gatehouse offer a Cash ISA, ArRayan do not offer any ISAs! My questions are below:

1- Is it firstly possible to have a IF-ISA as well as a Cash ISA as long as amount is <£20,000?

2- If so, is it possible to have a IF-ISA in 1 platform (like Nester) and a Cash ISA in another platform (like Gatehouse)?

3- Can I also open more than 1 Cash ISAs with different providers?

4- I've checked ArRayan and they don't specify "ISA" anywhere on their Savings Accounts currently, does that mean they don't offer ISA accounts? Or can I assume these are ISAs?

5- On Gatehouse, they explicitly mention products under "Cash ISAs". However their "Notice Accounts" are not listed under here, does that mean if I was to open a "Notice Account" it would be subject to tax?

6- I've been thinking to put £10,000 for 1 year into either Gatehouse or ArRayan. Now if Gatehouse offer a Cash ISA (4.35% annual return) and ArRayan offer a non-ISA (4.65% annual return) which would be more profitable?

7- Suppose I'm correct in assuming ArRayan do not offer any ISAs. If I was to put £20,000 into their 12 month fixed Savings account (4.65%) how much tax would I have to pay?

Thanks in advance.

Edit1: As pointed out, I should mention, Total income is £48,000 for 2025-2026.

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u/Total_Revolution3324 — 5 days ago

Investment halal

Hello 👋

It's been two years since I moved to Paris, and I'm now thinking about starting to invest. I've been considering Shariah-compliant ETFs.

However, I'm wondering whether they are truly halal. I see that these ETFs include companies whose main businesses are generally considered halal, such as Microsoft and Google.

My concern is that these companies also take interest-based loans from banks and may invest in interest-bearing financial products. If I invest in an ETF that holds these companies, would my investment still be considered halal, or would I be supporting activities that are not permissible in Islam?

On top of that, some of these companies are also on the boycott list related to Palestine, which makes the decision even more difficult for me.

I'm genuinely confused. Is it possible to invest in an ETF and be completely confident that it is halal, or is there always some level of compromise?

Thank you in advance for your advice.

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u/Top-Supermarket-2109 — 5 days ago

All are haram 🥲

Where I invest

Bitcoin haram

Stocks 5%riba

ETF same like stock

Digital gold is not permissible

So what the heck 😭

And where I invest

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u/LieDue4935 — 8 days ago

Fellow Muslims — what do you actually find hardest about money?

I've been going down a rabbit hole trying to get my own finances right in a halal way: zakat, whether my savings/investments are actually Halal, the whole inheritance/wills thing I keep avoiding and I realised that I have way more questions than answers, and most people I ask are in the same boat.

So I'm trying to understand what people genuinely struggle with day to day. I put together a short anonymous form (a few minutes, no sign-in, no email). Honest, specific answers are what make it useful.

If you've got a few minutes I'd really appreciate it. And if you'd rather just comment your biggest money headache below, that's just as useful.

JazakAllahu Khayran 🤲🏼

https://muslim-money-research.vercel.app

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u/Longjumping-Text-670 — 5 days ago

I need serious help

Salamu Alaykum,

I’m 21(F) based in the UK. I don’t have any clue about how to save correctly and literally have no one to ask. I have a savings account at the moment but feel like there’s other things I should be doing besides that. I have a savings account with al Rayaan bank instant access. What would any of you guys recommend that I do besides this savings account?. I also wanted to invest in stocks but don’t know where to begin with that and don’t want to end up scammed with these dodgy courses.

P.S. if you guys could explain everything would be very appreciated 😭

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u/rwdah — 6 days ago

Wahed invest email

Hello I just received this email from Wahed asking for some personal information has anyone gotten any thing similar or is this a scam
Thank you

u/Life_Historian_304 — 6 days ago

I wasted 4 years chasing money and I think I lost myself. I need honest advice.

As-salamu alaykum everyone,
I’m a 24-year-old woman, and I need some honest advice.
Financially, I’m not in a terrible position. Alhamdulillah, I have food, I have a roof over my head, and I live with my mother, so I don’t have to pay rent or major bills. I’m grateful for that.
But the truth is… I always wanted more.
For the past four years, I’ve been obsessed with making money through Forex trading. During those four years, I haven’t made a single dollar in net profit. Instead, I’ve spent around $4,000 on courses, funded challenges, and other trading-related expenses.
On top of that, I lost around $11,000 chasing meme coins because I genuinely believed crypto would make me rich overnight. Later, I learned that what I was doing was haram, and I sincerely regret it. I ask Allah every day to forgive me.
The worst part the money I lost and waking up everu single day I wake up hoping Forex will finally change my life. Every loss makes me emotional. Every winning streak makes me greedy. I feel like my entire identity has become tied to becoming rich.
When I look back, I feel like I spent the last four years chasing the dunya instead of building myself. I neglected my personal growth, my career, and sometimes even my relationship with Allah because I was constantly looking for the next trade.
Now I’m 24, and I feel like I have to start over.
Part of me feels ashamed because I could have spent those four years learning real skills, finishing certifications, building a business, or simply becoming a better Muslim and a better person.
Has anyone here gone through something similar?
How did you let go of the obsession with getting rich quickly?
Please don’t sugarcoat it. If I need a reality check, give it to me. I think I’ve been lying to myself for years, and I need honest advice more than comforting words.

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u/DIJ2001 — 6 days ago

Is interest truly haram?

Is interest haram?

I mean maybe it is. Islam is the religion where raiding infidels and stealing their money is totally permissible, and even actively called for…but charging interest? Uh oh that’s bad!

Interest is “haram” between two Muslim parties, I highly doubt that it’s haram between a Muslim and an infidel, and if it still is for the angry ragebaited Mohammadan who’s about to cry below, well I guess Islam is just a silly religion then isn’t it?

Raping, enslaving and financially exploiting and looting infidels = halal
Charging them interest = “haram” ????

That doesn’t make any sense. If raping and killing them is okay Islamically, are you sure charging them interest is “haram” all of a sudden?

Just like how it’s forbidden or haram in mohammadan law to kill another Muslim, but isn’t haram to kill an infidel, I would imagine that when it comes to interest, it’s the same thing.

Or maybe it isn’t. Maybe killing infidels is fine but charging them interest isn’t, which means that Islam (on top of being a false/terrorist/evil/wicked etc religion), is clearly a silly religion..

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u/nosuchthingasakafir — 7 days ago