In the name of Allah, the Most-Merciful, the All-Compassionate
 
"May the Peace and Blessings of Allah be Upon You"
 Praise be to Allaah, we seek His help and His forgiveness. We seek refuge with
Allaah from the evil of our own souls and from our bad deeds.
Whomsoever Allaah guides will never be led astray, and whomsoever Allaah leaves
astray, no one can guide. I bear witness that there is no god
but Allaah, and I bear witness that Muhammad is His slave and Messenger.
 
  
Bismillah Walhamdulillah Was Salaatu Was Salaam 'ala Rasulillah
As-Salaam Alaikum Wa-Rahmatullahi Wa-Barakatuhu

 



Usury / Interest: An Islamic
perspective
- Imran Ayub

 

 
 
1. Definition
 
The Oxford English Dictionary
definition for Interest is as follows:
“Money paid for the use of money lent (the principal), or for forbearance of a
debt, according to a fixed ratio (rate per cent.).”[1]
 
 
2. Allaah will Destroy Usury
 
“Allah
will destroy Ribaa (usury) and will give increase for Sadaqaa (deeds of
charity, alms, etc.) And Allah likes not the disbelievers, sinners.”[2]
 
Al – Haafiz Ibn Katheer
commentary[3] is
as follows: “Allaah states that He destroys
Ribaa, either by removing this money from those who eat it, or by depriving
them of the blessing, and thus the benefit of their money. Because of their
Ribaa,
Allah will torment them in this life and punish them for it on the Day of
Resurrection. Allah said,
 
“Say
(O Muhammad SAW): ‘Not equal are Al­-Khabeeth[4] and At­Taiyib[5],
even though the abundance of Al-Khabeeth (evil) may please you.’ So fear
Allaah
much, O men of understanding in order that you may be successful.”[6]“…and
put the wicked[7] one on another, heap them together and cast them into Hell.
Those! It is they
who are the losers.”[8]“And that which you give in gift (to others), in
order
that it may increase[9] from other people's property, has no increase with
Allâh,...”[10]
 
Ibn Jareer said that Allaah’s statement: “Allaah
will destroy Ribaa…” is similar to the statement reported of Abdullaah
bin Masood, Ribaa will end up with less, even if
it was substantial.’[11]Imaam Ahmad recorded a similar statement in
Al – Musnad.[12]
 
It was narrated from ibn Masood
(may Allah be pleased with him) that the Prophet (peace be upon him) said,
“There is no one
who deals in usury a great deal (to increase his wealth) but he will end up
with little (i.e., his wealth will be decreased).”[13]
 
 
3. Punishment on the Day of Judgement
 
Allah, the Most High, says in
the Qur’aan, “Those who eat Riba (usury) will
not stand (on the Day of Resurrection) except like the standing of a person
beaten by Shaitaan (Satan) leading him to insanity. That is because they
say: ‘Trading is only like Ribaa (usury),’ whereas Allah has permitted
trading
and forbidden Ribaa (usury). So whosoever receives an admonition from his Lord
and stops eating Ribaa (usury) shall not be punished for the past; his case is
for Allah (to judge); but whoever returns [to Ribaa (usury)], such are the
dwellers of the Fire - they will abide therein.”[14]
 
Al – Haafiz Ibn Katheers
commentary[15] is as
follows: “This Ayah means, on the Day of
Resurrection, these people will get up from their graves just as the person
afflicted by insanity or possessed by a demon would. Ibn `Abbas said, “On the
Day of Resurrection, those who consume Riba will
be resurrected while insane and suffering from seizures.”[16]
 
…Thereafter, Allah said, “So whosoever
receives an admonition from his Lord and stops eating Ribaa (usury) shall not
be punished for the past; his case is for Allaah (to judge)”, meaning,
those who have knowledge that Allah made usury unlawful, and refrain from
indulging in it as soon as they acquire this knowledge, then Allah will forgive
their previous dealings in Riba.”
 
 
4. Those who Deal with Usury Declare
War with Allah
 
“O
you who believe! Be afraid of Allah and give up what remains (due to you)
from Riba (usury) (from now onward), if you are (really) believers. And
if you do not do it, then take a notice of war from Allaah and His Messenger but
if you repent, you shall have your capital sums. Deal not unjustly (by
asking more than your capital sums), and you shall not be dealt with unjustly
(by receiving less than your capital sums).”[17]
 
Al – Haafiz Ibn Katheer’
commentary[18] is as
follows: “Ibn Jurayj said that Ibn Abbas
(may Allah be pleased with him) said that, “then
take a notice of war” means, ‘Be sure of a
war from Allah and His Messenger.’[19] He also said, ‘On the Day of
Resurrection, those who eat
Riba will be told, ‘take up arms for war.’’[20]
 
 
5. Punishment in the Grave
 
Narrated Samura ibn Jundab (may
Allah be pleased with him): The Prophet (peace be upon him) said, “This night
I dreamt
that two men came and took me to a sacred land whence we proceeded on till we
reached a river of blood, and in it (its middle) there was a man, and on its
bank was standing another man with stones in his hands. The man in the middle
of the river tried to come out, but the other threw a stone in his mouth and
forced him to go back to his original place. So, whenever he tried to come out,
the other man would throw a stone in his mouth and force him to go back to his
former place. I asked, ‘Who is this?’ I was told, ‘The person in the river
was
a Ribaa – eater.’”[21]
 
 
6. Usury is Cursed
 
It was narrated from Abduallaah
ibn Masood (may Allah be pleased with him) that the Messenger of Allah
(peace be upon him) cursed the one who consumes usury, the one pays it, those
who witness it and the one who writes it down.[22]
 
It was narrated from Aboo
Hurayrah (may Allaah be pleased with him) that the Messenger of Allah (peace
be upon him) said, “There are seventy degrees of usury, the least of which
is equivalent to a man having intercourse with his mother.”[23]
 
 
7. One of the Destructive Sins
 
Narrated Aboo Hurayrah (may
Allah be pleased with him): The Prophet (peace be upon him) sad, “Avoid seven
great destructive sins.” They (the people) asked,“O Allaah’s
Messenger! What are they?” He said, “ (1) To join partners in worship with
Allah; (2) To practice sorcery; (3) To kill the life which Allaah has
forbidden, except for a just cause (according to Islaamic law); (4) To eat
up Ribaa (usury); (5) To eat up the property of an orphan; (6) To show one’s
back to the enemy and fleeing from the battlefield at the time of fighting; (7)
And to accuse chaste women who never even think of anything touching their
chastity and are good believers.”[24]
 
 
8. Imitating the Jews
 
“For
the wrong­doing of the Jews, We made unlawful to them certain good foods which
has been lawful to them, and for their hindering many from Allaah's Way; And
their taking of Ribaa (usury) though they were forbidden from taking it and
their devouring of men's substance wrongfully (bribery, etc.). And We have
prepared for the disbelievers among them a painful torment.”[25] 
 
Al – Haafiz Ibn Katheer
commentary is as follows: “Allah states
that because of the injustice and transgression of the Jews, demonstrated by
committing major sins, He prohibited some of the lawful, pure things which were
previously allowed for them. This prohibition could be only that of decree,
meaning that Allah allowed the Jews to falsely interpret their Book and
change[26]and alter the information about what was
allowed for them. They thus, out of exaggeration and extremism in the religion,
prohibited some things for themselves. It could also mean that in the Tawrah,
Allah prohibited things that were allowed for them before….Allaah prohibited
them from taking Ribaa, yet they did so using various kinds of tricks, ploys
and cons, thus devouring people's property unjustly.”[27]
 
 
9. Mortgages and Interest Based Loans
 
Ibn Qudaamah (may Allah have
mercy on him) said: “Every loan in which
it is stipulated that an additional payment be made is haraam, with no
scholarly dispute. Ibn al-Mundhir said: They are unanimously agreed that if
the lender stipulates that the borrower must pay extra or give a gift, and he
gives the loan on this basis, this is riba. It was narrated from Ubayy ibn
Ka’b, Ibn ‘Abbaas and Ibn Mas’ood that they forbade loans that lead to any
kind
of benefit (extra payment, gifts, etc).”[28] 
 
The Standing Committee was asked
about the Islamic ruling on taking a loan from a riba-based bank in order to
build a modest house. They replied: “It
is haraam to take a loan from banks or elsewhere with riba, whether that is
to build something or to spend it on food, clothing or medical expenses or to
start a business and earn more money, or any other purpose, because of the
general meaning of the verses that forbid riba, and the general meaning of the
ahaadeeth which indicate that it is haraam. Similarly it is not permissible to
deposit money in banks etc that pay interest.”[29]
 
Mufti Muhammad Taaqi Usmani said, “The correct position is that dealing in
interest is haram, both in a Muslim or a non-Muslim country. Some jurists have
opined that interest bearing loans can be given to a non-Muslim citizen of a
non-muslim country, and the interest charged from him is halal for a muslim.
But this view has not been endorsed by the majority of the jurists. So, the
correct view is that charging interest is not permitted in any case, no
matter whether the debtor is a citizen of a Muslim country or not.”[30]
 
Mufti Muhammad ibn Adam
al-Kawthari said, “Usury, interest
transactions and mortgages are totally prohibited in Islaam. There are
grave warnings promised in the Qur’an and Sunnah for the one who involves
himself in interest based transactions.”[31]
 
Dr. Khalid Khan said, “Mortgage is based on interest, and interest
is haraam and is one of the major sins in Islaam, which can never become
halaal at all. There is no argument or difference of opinion on this issue.
Whoever makes a difference or dispute on this issue has differed from Allaah
and His Messenger (peace and blessings of Allah be upon him). The seriousness
of dealing in interest is shown by Aayaat of the Qura'an and many Ahadeeth of
the Prophet (peace and blessings of Allah be upon him).”[32]
 
 
 
 
And It is Only Allaah Who grants success. May Allaah Exalt the mention
of His slave and Messenger Muhammad (peace be upon him), and render him, his
household and companion safe from Evil.
 


________________________________

[1] http://dictionary.oed.com/
[2] The Noble Qur’aan, Soorah
Al-Baqarah 2:276
[3] Tafseer ibn
Katheer, Volume 2, p. 75 – 76
[4] All that is evil and bad as regards things, deeds,
beliefs, persons, foods, etc
[5] All that is good as regards things, deeds, beliefs,
persons, foods, etc.
[6] The Noble Qur’aan,
Soorah Al-Ma'idah 5:100
[7] Disbelievers, polytheists and doers of evil deeds
[8] The Noble Qur’aan, Soorah
Al-Anfal 8:37
[9] Your wealth by expecting to get a better one in return
[10] The Noble Qur’aan, Soorah
Ar-Rum 30:39
[11] At-Tabari 6:15
[12] Ahmad 1:395
[13] Sunan Ibn Maajah,
Volume 3, Hadeeth Number 2,279, p. 301; Classed as Saheeh by Haafiz Aboo Taahir
Zubayr ‘Alee Za’i
[14] The Noble Qur’aan, Soorah
Al-Baqarah 2:275
[15] Tafseer ibn
Katheer, Volume 2, p. 70 – 71
[16] At-Tabari 6:9
[17] The Noble Qur’aan, Soorah
Al-Baqarah 2:278 – 279
[18] Tafseer ibn
Katheer, Volume 2, p. 79 – 79
[19] At – Tabari 6:26
[20] At – Tabari 6:25
[21] Saheeh Bukhaari,
Volume 3, Book 34, Hadeeth Number 2,085, p. 174
[22] Sunan Ibn Maajah,
Volume 3, Hadeeth Number 2,277, p. 300 – 301; Classed as Hasan by Haafiz Aboo
Taahir Zubayr ‘Alee Za’i
[23] Sunan Ibn Maajah,
Volume 3, Hadeeth Number 2,274, p. 299; Classed as Hasan  by Haafiz Aboo Taahir
Zubayr ‘Alee Za’i
[24] Saheeh Bukhaari,
Volume 8, Book 86, Hadeeth Number 6,857, p. 447
[25] The Noble Qur’aan, Soorah
An-Nisa 4:160 – 161
[26] In the Bible, it states,“Do not charge a fellow Israelite
interest, whether on money or food or anything else that may earn interest.”
[Deuteronomy 23:19] However, the next verse shows the addation made but the
Jews, “You may charge a foreigner interest, but not
a fellow Israelite, so that the LORD your God may bless you in everything you
put your hand to in the land you are entering to possess.” [Deuteronomy
23:20]
[27] Tafseer ibn
Katheer, Volume 3, p. 44 – 46
[28] Al-Mughni,
6/436, http://www.islamqa.com/en/ref/39829
[29] Fataawa
al-Lajnah al-Daa’imah (13/385), Ibid.,
[30] ‘Dealing in
Interest in America or UK’,
http://www.muftitaqiusmani.com/index.php?option=com_content&view=article&id=45:d\
ealing-in-interest-in-america-or-uk&catid=10:economics&Itemid=17
[31] ‘Mortgage and
Car Insurance’, http://www.daruliftaa.com/question?txt_QuestionID=q-18585073
[32]‘Is it allowed
to take a mortgage?’, http://www.drkhalid.co.uk/questions/013.html



What Islam Says About Riba (Interest or Usury) -
By Sheikh Shady Alsuleiman


 Permission is granted to circulate among private individuals and groups, to
post on Internet sites and to publish in full text and subject title in
not-for-profit publications.

 
http://groups.yahoo.com/group/LoveIslam_LiveIslam/

[Non-text portions of this message have been removed]