The issue of Usury in the contracts, "interest-free" used in the financial system in Iran

Usury in Islam is considered as the main financial corruption which is generally applicable to loans. Meanwhile, loan is used as a method of mobilizing and allocating resources in Iran's non-interest banking it seems that regard for loan contracts is vital to avoid usury or something akin to that. Putting questions to Grand Ayatollahs and their opinions being expressed about the performance of banks and some interest-free funds have proved major problems in applying debt in the financial system of the country. This paper has attempted to study the pathological function of the financial system in Iran in the use of the loan contract as interest-free financing by descriptive and analytical method. Results obtained from this analysis confirmed the viewpoint of some authorities on interest on current loan agreements in the country's financial system. On the other hand, these findings prove this method of financing inappropriate considering the nature of bank as well as its implementation model due to the inflationary conditions in economy of Iran. Finally, proposals have been submitted to solve the challenges.