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Riba (Usury and Interest) According to Quran and Sunnah

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#1

03-24-2006

Cheb
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Riba (Usury and Interest) According to Quran

and Sunnah
Riba (Usury and Interest)
According to Quran and Sunnah

Defining the Problem

Riba (Usury) is of two major kinds:
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Riba An-Nasia - Interest on lent money

Riba Al-Fadl - Taking a superior thing of the same
kind of goods by giving more of the same kind of
goods of inferior quality, eg.,dates of superior
quality for dates of inferior quality in great
amounts.
The definition of Interest, the literal meaning of
interest or Al-Riba as it is used in the arabic
language means to excess or increase. In the
Islamic terminology interest means effortless
profit or that profit which comes free from
compensation or that extra earning obtained that
is free of exchange. Riba has been described as a
loan with the condition that the borrower will
return to the lender more than and better than
the quantity borrowed.
As muslims, our main concern when it comes to
financial transactions is to avoid Riba in any of its
forms, despite the fact that the basic foundation
of the world economics and finance today is that
of riba and dealing in usury.
The Prophet has foretold us of a time when the
spread of riba would be so overwhelming that it
would be extremely difficult for the muslim to
avoid it. This situation calls for muslims to be
extra cautious before deciding on what money
payment of financial methods to use in any
personal or business transaction.
To make sure that we are safe from Riba, we
have to learn which transactions lead to it.

------------------------------------------------------------------------------Interest in Pre-Islamic Times

HafizIbn hajr writes in his commentary of Sahih

Bukhari (Fathul Bari), Vol. IV p.264:
Imam Malik reports on the authority of Zaid Ibn
Aslam that in the period of ignorance (pre-Islamic
times) interest was changed according to the
following scheme. One person had a right to the
property of another person. It may have been a
general right because of the amount lent or the

price of something purchased or in any other

form. A time was set when the claim would be
settled.When the appointed time arrived the
creditor would ask the debtor if he wanted to
settle the claim or pay interest with an extension
of time. If the claim was settled then there was
no increase in the payment. Otherwise the debtor
would increase the amount payable and the
creditor would extend the period further.

------------------------------------------------------------------------------Textual Evidence
Hadith - Sahih Bukhari, Volume 3, No. 299;
Narrated Aun bin Abu Juhaifah, r.a.
My father bought a slave who practised the
profession of cupping, (My father broke the
servants instruments of cupping). I asked my
father why he had done so. He replied, "The
Prophet forbade the acceptance of the price of a
dog or blood, and also forbade the profession of
tatooing, or getting tatooed and receiving or
giving Riba (Usury), and cursed the picture
makers."
Hadith - Sahih Bukhari, 2.468, Narrated Samura
bin Jundab, r.a.
He speaks of in a dream related to the Prophet
(SAW) that there is a river of blood and a man
was in it, and another man was standing at its
bank with stones in front of him,facing the man
standing in the river. Whenever the man in the
river wanted to come out , the other one threw a
stone in his mouth and caused him to retreat
back into his original position.The Prophet was
told that these people in this river of blood were
people who dealt in Riba (usury).
The Noble Qur'an - Al-Baqarah 275-281
275. Those who eat Ribâ (usury) will not
stand (on the Day of Resurrection) except like
the standing of a person beaten by Shaitân
(Satan) leading him to insanity. That is because
they say: "Trading is only like Ribâ (usury),"
whereas Allâh has permitted trading and
forbidden Ribâ (usury). So whosoever
receives an admonition from his Lord and stops
eating Ribâ (usury) shall not be punished
for the past; his case is for Allâh (to
judge); but whoever returns [to Ribâ
(usury)], such are the dwellers of the Fire - they

will abide therein.

276. Allâh will destroy Ribâ (usury)
and will give increase for Sadaqât (deeds of
charity, alms, etc.) And Allâh likes not the
disbelievers, sinners.
277. Truly those who believe, and do deeds of
righteousness, and perform As-Salât
(Iqâmat-as-Salât), and give
Zakât, they will have their reward with their
Lord. On them shall be no fear, nor shall they
grieve.
278. O you who believe! Be afraid of Allâh
and give up what remains (due to you) from
Ribâ (usury) (from now onward), if you are
(really) believers.
279. And if you do not do it, then take a notice
of war from Allâh 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).
280. And if the debtor is in a hard time (has no
money), then grant him time till it is easy for him
to repay, but if you remit it by way of charity,
that is better for you if you did but know.
281. And be afraid of the Day when you shall be
brought back to Allâh. Then every person
shall be paid what he earned, and they shall not
be dealt with unjustly.
The Noble Qur'an - Al-Imran 3:130
O you who believe! Eat not Ribâ (usury)
doubled and multiplied, but fear Allâh that
you may be successful.
Hadith - Mishkat-ul-Masabih
The following three ahadith have been taken from
Mishkat-ul-Masabih under the section of interest
and the English translation has been taken from
its English version written by Al Hajj Moulana Fazl
Karim (218-227 vol.11)
Hazrat Jabir r.a. has reported that the Messenger
of Allah cursed the devourer of usury, its payer,
its scribe and its two witnesses. He also said that
they were equal (in sin).
Hazrat Abu Hurairah r.a. reported that the
Prophet said : A time will certainly come over the
people when none will remain who will not devour

usury. If he does not devour it, its vapour will

overtake him. [Ahmed,Abu Dawood,Nisai,Ibn
Majah]
Hazrat Abu Hurairah radiyallahu anhu reported
that the Messenger of Allah said: I came across
some people in the night in which I was taken to
the heavens.Their stomachs were like houses
wherein there were serpents,which could be seen
from the front of the stomachs. I asked
Gabriel! Who are these people? He replied these
are those who devoured usury. [Ahmed,Ibn
Majah]
Hadith - ??
Hazrat Al-Khudri radiyallahu anhu reported that
the Prophet said: Gold in exchange for gold, silver
in exchange for silver, wheat in exchange for
wheat, barley in exchange for barley,dates in
exchange for dates, salt in exchange for salt is in
the same category and (should be exchanged)
hand to hand, so whoever adds or demands
increase he has practised usury. The giver and
taker are the same.

------------------------------------------------------------------------------Conclusion
After reading the above, it is apparent to us that
interest is haram (prohibited). How could anybody
even take the time out to think about a matter in
which Allah has declared war on the user and his
Beloved Prophet has cursed him? As sensible
people we can understand that what our Creator
has chosen for us is for our own prosperity and
benefit.
Islam has encouraged men to earn their own
provision and provide for their families. The
condition is that the earning has to be according
to the Shariah. These rules can be found under
the heading of trade in the books of
jurisprudence. Interest is amongst those
conditions which all dealings must be free from.
Imam Abu Hanifah has ruled that if the
measurement system (volumetric or in
compounds) is the same and the two items are in
the same category, then they should be sold in
the same amount and direct not in credit
otherwise interest will be found.
Imam Shafee says that if the items are valuable
and could be considered food then there is the
chance of interest.

Imam Malik says that if the items are valuable and

are edible then interest is a subject.
http://muttaqun.com/riba.html

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#2

02-10-2007

shible
w at to Say?

I have a Query?

I have a question?

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I was thinking about it for a long time since most

of our Brother's and sister's who earn never knew
whether the money they Earn is Halaal or Haraam.
this thought jus popped out on seeing the
following post from one of our moderators.
[PIE]Eating from
sources[/PIE]

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Say if the jobs in Banks are based on interest , do

you really think a muslim who work's on a bank on
a ledger section Or May be in any section earns
his money in unlawful manner.

52

lawful and unlawful

If there are certain industries

like this Banking industry that
invlolve INTEREST,

then please let the Members

know about that so that they
would be aware of their Earning
on the Righteous Way

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#3

02-10-2007

E'jaazi

Re: I have a Query?

Full Member

Working in a riba-based (interest-based)

bank
Question:
Aslamoaliakum.

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jazaakum-Allah-khair.

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I have been offered a job at a Bank, and I am not

sure whether I should work there or not, because
the bank makes money from interest (Riba).
Please tell me whether working there is allowed
(Jaaiz), or not.

Answer:
1

Praise be to Allaah.
You will find the answer in the hadeeth of Jaabir,
may Allaah be pleased with him, who said: "The
Messenger of Allaah cursed the one who
consumes riba (interest or usury), the one who
gives it, the one who writes it down and the one
who witnesses it. He said: 'All of them are equal
in sin.'" (Reported by Muslim, may Allaah have
mercy on him, in his Saheeh, no. 1598)
Commenting on this hadeeth, al-Nawawi, may
Allaah have mercy on him, said: This is clearly a
prohibition of the writing down or witnessing of a
contract between the two parties involved in a
riba-based deal. It also includes a prohibition of
helping others to commit wrong acts. And Allaah
knows best.
It is inevitable that the employee in a riba-based
bank will play a part in riba dealings one way or
another, even if he is just a security guard.
Maybe Allaah will help you, my brother, if you are
patient, to find halaal employment.

(Interpretation of the meaning) " And

whosoever fears Allaah and keeps his duty to
Him, He will make a way for him to get out (from
every difficulty)." [al-Talaaq 65:2]

Shaykh al-Barraak

www.nafis.muslimblogz.com
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#4

02-10-2007

shible

Re: I have a Query?

w at to Say?

Assalamu Alaikkum(warah)
But As in practical wat r the other fields that
come under the above mentioned Category.

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#5

02-10-2007

shible

Re: I have a Query?

w at to Say?

Can anyone reply me the other Working in a ribabased (interest-based)fields

Other than banking

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#6

03-03-2007

Learning

Interest

Limited Member

Salam everyone.
Heres my second thread(and problem)
OK as a fact interest is haram. BUT where does
the defintion of interest come from?

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I have herd it be said that it is any FIXED return

you get on money.
Hence interest from a bank say at 4% is haram.
But a bank gives interest as a return on the profit
they make from your money and if they make a
loss then in the long term the % does change as
it does go up or down.

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The islam bank has rather just changed the word

interest into a ''return on profit'' as far as i can
see it is the same as what other banks are doing.
When does interest become haram?
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#7

03-04-2007

Lina

Re: interest... the money kind.

IB Oldtimer

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In the Islamic terminology interest means

effortless profit or that profit which comes free
from compensation or that extra earning obtained
that is free of exchange. Hazrat Shah Waliullah
Dehlvi a great scholar and leader has given a very
concise and precise definition of interest. He
says,

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"Riba` is a loan with the condition that the

borrower will return to the lender more than and
better than the quantity borrowed."
http://www.interislam.org/Prohibiti...htm#Definition
Check the link for more info on riba Insha'Allah.

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We're gonna need a bigger boat

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#8

03-04-2007

Snowflake

Re: interest... the money kind.

Assalamu alaykum

JazakAllah khair for the link Lina sis.

But a bank gives interest as a return on the
profit they make from your money and if
they make a loss then in the long term the
% does change as it does go up or down.

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The islam bank has rather just changed the

word interest into a ''return on profit'' as far
as i can see it is the same as what other
banks are doing.

1507

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Yes, that's how some people justify interest as

being halal. But there's no doubt that the profit
banks makes come from halal & haram
investments. Therefore which ever way we look
at it, it's still haram.

1144

I agree. In fact you end up paying them the same

amount back as if you'd got a loan/mortgage from
a non-islamic bank.
And if you take out a mortage with an Islamic
bank, the house belongs to them until the
mortgage is paid off. In the mean time you pay
'rent' to live in it.

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03-05-2007

#9

Learning

Re: interest... the money kind.

Limited Member

Originally Posted by Lina

In the Islamic terminology interest means

effortless profit or that profit which comes
free from compensation or that extra
earning obtained that is free of exchange.
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Check the link for more info on riba

Insha'Allah.

from this can i say

customer and that
bank and then the
money can this be

if i send lets say a bank a

customer deposits 100 in the
bank gives me a % of that
classed as interest?

I am having an exchange with the bank as i am

giving them a customer and then i am in turn
given a % of the customers money.
anyone have any thoughts on this?
Thanks.
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#10

03-16-2007

shujamughal
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Can any body tell me the references from

Quran and Hadis about Interest(SOOD,RIBA)

Can any body tell me the references from Quran

and Hadis about Interest(SOOD in urdu, and RIBA
in arabic)
i need the sura name verse number means exact
reference so i can tell one of my fellow that
interest is not permitted in islam as he use credit
cards and say to me that these cards are not
allow to use according to islam
Allah Hafiz
Shuja-ur-Rehman
Pakistan

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03-16-2007

#11

amirah_87
Account Disabled

Re: Can any body tell me the references from

Quran and Hadis about Interest

In suratul Baqarah Aayah 275 it clearly states

that Ribaa/ Interest is haraam.
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"Allatheena Ya'kuluun ar-ribaa' laa yaquumuun illaa

kamaa yaquumul-lathee yatakhab'badahus
Shaytaanu minal-mass, Dhaalika bi'annahum
qaaluw innamal-bayu' mithlur-ribaa wa
ahalallaahul baya'a wa harramar-ribaa' , faman
jaa'ahuu maw'idatun min Rabbihii fa'ntahaa lahuu
maa salaf wa amruhuu ilalaah, wa man 'aada
fa'ulaaki ashaabun naari hum feehaa khaaliduun..."
"Those who eat Riba (usury) will not stand (on
the Day of Resurrection) except like the standing
of a person beaten by Shaitan (Satan) leading
him to insanity. That is because they say:
"Trading is only like Riba (usury)," whereas Allah
has permitted trading and forbidden Riba (usury).
So whosoever receives an admonition from his
Lord and stops eating Riba (usury) shall not be
punished for the past; his case is for Allah (to
judge); but whoever returns [to Riba (usury)],
such are the dwellers of the Fire - they will abide
therein.
And the in the following ayah (276) it goes onto
say:
"Yamhaq-Allaahur- Ribaa' wa yurbis-Sadaqaat
wallAllaahu laa yuhibbu kulla Kaffaarin atheem.."
Allah will destroy Riba (usury) and will give
increase for Sadaqat (deeds of charity, alms,
etc.) And Allah likes not the disbelievers, sinners.
Hope that helps InshaAllah.

Last edited by amirah_87; 03-16-2007 at 07:28 PM.

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#12

03-18-2007

abu abdurrahman
Full Member

references from Quran and Hadis about

Interest(SOOD,RIBA)
I think the verse that should scare us
the most about riba (in the interpretation of the
meaning) is:

And if you do not do it, then take a notice of

war from Allaah and His Messenger..."
SubhanAllah... What salvation is there for a
person upon whom Allah has declared war.
I seek refuge in Allah from that.
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Last edited by amirah_87; 03-24-2007 at 10:05 PM. Reason: adding
"refuge" on.
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#13

03-18-2007

NoName55

Ribaa (Interest)

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Monday, 10 July 2006

Article Index
Ribaa (Interest)
Page 2
Page 3

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Written by Dr. Bilal Philips

Page 1 of 3
A classical example in these times of impatience
and haste leading to Haraam is related to Ribaa.
Some Muslims in the West are quick to point out
that the whole economic system of western
civilization is founded on an interest-based
system, and as such necessitates dealing with
interest.
They may also add that paying rent year after
year with no real return, and residence in
unsuitable housing, all make buying a house with
a mortgage a must: even if it means taking a
bank loan, and or paying monthly installments
which include an interest rate. It may also be

pointed out by them that dire necessity makes

the forbidden allowable, is a well-known principle
in Islaamic law, hence the sins one is forced to do
are not held against him. This principle can be
found in Ibn Abbaas report that the Prophet said,
Allaah has pardoned my people for their
inadvertent mistakes, their forgetfulness
and for what they were forced to do. 1
It can also be found in the Quraanic verse
following the mention of the categories of
forbidden meat, wherein Allaah has said,
But for whoever is forced by hunger (to
eat of the forbidden) without desiring sin,
verily Allaah is forgiving and merciful.
(Quran 5:3)
However, the point is, what is meant by the word
forced and how is dire necessity defined? Does
it refer to circumstances under which one desires
something badly and is driven by that desire to
believe that he or she cannot live without it? Or
is it only applicable to circumstances in which one
is threatened with loss of life or limb? Does it
mean when ones life is in danger? The case
usually cited to illustrate what is meant by forced
is that of Ibn Yaasir,
The Sahaabee who accepted Islaam as a
slave and was tortured to the point of
death to renounce his belief. He complied
with his masters demand and falsely
admitted that the Prophet was a magician
and that the Makkan idols were his gods.
After being released from torture, Ammaar
Ibn Yaasir avoided the Prophets company
out of shame for what had said; especially
since both his father, Yaasir, and his mother,
Sumayyah, chose to be tortured to death
rather than deny their belief in Allaah and
His Prophet. When the Prophet learned of
Ammaars feelings of shame, he called for
him and asked him about the state of his
heart. Ammaar replied that it was full of
Eemaan (belief), so the Prophet said, If
they repeat the torture repeat what you
said.
Then Allaah revealed the following verse,
Whoever disbelieves in Allaah after
believing, except he who is forced though
his heart is at peace with Eemaan; Allaah is
angry with whoever finds ease in disbelief
and they will have a severe penalty. 2,3
This Hadeeth clearly illustrates the true meaning
of being forced and dire necessity as
understood by the Shareeah; circumstances in
which one may incur the loss of life or limb. Only
in situations in which ones life or limb is actually
threatened can be considered the type of
necessity which would make certain Haraam
practices permissible.
Whenever western colonial powers wanted to
introduce offensive practices in colonized Muslim

lands, they would first gain control of a promising

Muslim scholar and then coerce him into making
Fatwaas (legal rulings) in their favor. Thus, Ribaa
(which was unthinkable among Muslims less than
a hundred years ago) found its way into the ranks
of Muslims through the Fatwaas of the likes of
Muhammad Abduh, who was installed by the
British as Shaykh al-Azhaar (Chancellor of alAzhaar University in Egypt) against the will of its
staff. Under the influence of these Fatwaas,
Abdullah Yusuf Ali stated in his commentary on
the verses on Ribaa that the prohibition did not
include economic credit, the creature of modern
banking and finance. However, serious unbiased
consideration of the main Quraanic verses on
Ribaa found at the end of Soorah al-Baqarah and
the severe warnings of the last Prophet indicate
an unconditional opposition to Ribaa in all of its
forms.
In verse 275 of Soorah al-Baqarah, Allaah starts
off a frontal attack on Ribaa describing those who
take interest in the most repulsive terms:
Those who devour interest stand up like
someone lurching from Satans touch. 4
Prev - Next >>
Last Updated ( Tuesday, 08 August 2006 )
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#14

03-24-2007

learningislam

Re: I have a Query?

IB Senior Member

I was listening to an interview of Dr. Zakir Naik(

well, it was a Question Answer session) and he
said that the workers in a riba-based bank earn
haraam money.

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This is clearly a prohibition of the writing

down or witnessing of a contract between
the two parties involved in a riba-based
deal. It also includes a prohibition of helping
others to commit wrong acts. And Allaah
knows best.
Nowadays, there are some riba- free banks too in
some islamic countries.......thats what they call
islamic banking. May be you can find one in your
country inshaAllah.

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#15

04-18-2007

Learning
Limited Member

Riba.. Is it interest or is it usury?

Salaam to all. I have much trouble in
working this one out for myself. I have been to
talks about it have herd it been debated many
times. But i am still none the wiser.

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What does ilsam forbid is it interest or is it usury?

From translations of the Quran that i have seen
the word Riba is translated directly into usury
which is not the same as interest...
Can anyone shed some light on the issue for me
please?
Thank you.

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#16

04-19-2007

Malaikah

Re: Riba.. Is it interest or is it usury?

IB Oldskool

I though interest is usury, only less extreme?

Well, I'm not sure, but thing I am 100% certain of
is that interest is riba and is haram.

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#17

04-19-2007

Learning

Re: Riba.. Is it interest or is it usury?

Limited Member

well usury is ''charging an excessive amount of

interest'' not just interest. Like some say charging
normal interest is fine as it is in line with inflation
and only fair...

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#18

04-30-2007

peace800

Re: Riba.. Is it interest or is it usury?

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Can some other people add to this too.

Usury is excessive interest and in arabic riba
means usury and faida in arabic means interest.
Allah(swt) mentions riba not faida. Usury is
extreme shameful interest but modern day
banking is not that hence they only usually lend if
ppl can afford.

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I have read some technical articles saying that

many scholars have been very quick to call all
interest as being riba but the writers have argued
that it may not be the case.

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05-01-2007

#19

Learning

Re: Riba.. Is it interest or is it usury?

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well i guess this can be argued and Allah knows

best.

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#20

05-01-2007

Kittygyal

Re: Riba.. Is it interest or is it usury?

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salamualikum.
whats the meaning of 'riba' when i looked at this
thread once for a second i thought it ment
'ribena'
ma'assalama

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