Dealing With Riba (Usury and Interest)

بسم الله الرحمن الرحيم
In the Name of Allah, Most Merciful, Most Compassionate
Assalaamu alaykum

Dear Friends

I pray that you are well.

Riba (usury and interest) is prohibited in Islam. What is Riba (Usury or Interest)?

The advice is that if you are ignorant of riba, avoid contract of exchange (e.g. gold for gold, rice for rice, etc.), avoid debts and financing. This includes avoiding jobs at a bank (or any other place) that have a direct involvement with interest-based transactions.

Abd Allah ibn Mas'ud (Allah be pleased with him) narrates that the Messenger of Allah (Allah bless him and grant him peace) cursed the one who accepted riba, the one who paid it, the witness to it, and the one who recorded it. (Sunan Abu Dawud).

In another Hadith, the Messenger of Allah (Allah bless him and grant him peace) invoked curse (la'na) on the receiver of interest, the payer of interest, the scribe and the two witnesses. And he said: "They are the same" (i.e. in sin). (Sahih Muslim)

Thus, the warning of the Messenger of Allah is indeed severe. The one who is directly involved with interest transactions in any way, shape or form, such as writing or calculating the transaction will earn the curse of Allah Almighty and his beloved Messenger (Allah bless him and grant him peace).

If we explore the Qur’an we will come across at least four places where Allah has mentioned interest.

Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein. (275) (Al-Baqarah 2:275)

Allah destroys interest and gives increase for charities. And Allah does not like every sinning disbeliever. (276) (Al-Baqarah 2:276)

Indeed, those who believe and do righteous deeds and establish prayer and give zakah will have their reward with their Lord, and there will be no fear concerning them, nor will they grieve. (277) (Al-Baqarah 2:277)

O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. (278) (Al-Baqarah 2:278)

And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged. (279) (Al-Baqarah 2:279)

"Oh you who believe! Devour not usury doubled and multiplied; but fear Allah that you may prosper." (AleImran 3:130)

"That they took usury though they were forbidden and they devoured peoples wealth wrongfully; we have prepared for those amongst them who reject faith a grievous chastisement." (An-Nisaa 4:161)

"That which you give in usury for increase through the property of people will have no increase with Allah: but that which you give for charity seeking the countenance of Allah, it is these who will get a recompense multiplied." (Ar-Rum 39)

As you can see, giving and taking interest is unlawful and there is no blessing in it.

Unfortunately, the basis of many of the transactions (especially in banking and insurance), personal or business involve interest. Thus it is becoming increasingly difficult for the majority of the Muslims, especially those who are comercially orientated to abstain from dealings involving interest.

A person who takes interest does not gain anything in reality. In reality, the money gotten or the things gotten through ribawi transaction will just go to waste, and the person doesn't even realized this--there is definitely no blessing in it; and the person who gives charity for the sake of Allah, in whatever form it may be, actually gains although it seems as though he is losing it.

"Allah destroys interest and gives increase for charities..." [Al-Baqarah 2:276]

Each of us should take all necessary precautions in our financial and social dealings. If we neglect to keep a watchful eye on these matters, it will have tremendous negative consequences in other aspects of our religion.

The dealings of usury and interest are not only a disadvantage to us in this life but will also be a source of great suffering in our next life.

The Prophet, Allah bless him and grant him peace, has informed us about the punishment that awaits those people who deal with interest:

Narrated by Abu Hurayrah, Allah's Messenger, Allah bless him and grant him peace, said, "On the night when I was taken up to Heaven I came upon people whose bellies were like houses and contained snakes which could be seen from outside their bellies. I asked Jibril (alayhissalaam) who they were and he told me that they were people who had practised usury." [Tirmidhi]

The Prophet, Allah bless him and grant him peace, said, "A dirham which a man knowingly receives in usury is more serious than thirty-six acts of fornication." Ibn Abbas's version adds that he said, "Hell is more fitting for him whose flesh is nourished by what is unlawful." [Tirmidhi]

One must decide between temporary worldly gains and the curse (la'na) of Allah Almighty and his Messenger (Allah bless him and grant him peace). Ask yourself, is it really worth to destroy the eternal life of the Hereafter for a few moments of comfort in a life that will end at any moment?

If you have in a specific ribawi situation and wish to get out of it, consult a scholar who will be able to advise you appropriately, inshaAllah. May Allah give you tawfiq. Ameen.

May Allah remove any traces of riba in our lives. Ameen,

Please don't forget us in your night prayers. Jazakallahu khairan.

And Allah knows best.
Wassalaam

related archives:

Borrowing and Lending