Riba (Interest) a major sin – Its Strict Prohibition in Islam & Other Religions
By
Shais
- Definition of Riba
- Its prohibition in the Quran
- Its prohibition in the Hadith
- Two important questions answered
- Its prohibition in the Bible
- Conclusion
In this article I’ll be mentioning about one of the most major sins in Islam i.e. Riba (interst).
1. Definition of Riba
Riba literally means 'to grow; to increase.' Technically, it denotes the amount that a lender receives from a borrower at a fixed rate in excess of the principal. It is of two kinds:
1. Riba Nasi'a - taking interest on loaned money.
2. Riba Fadal - taking something of superior quality in exchange for giving less of the same kind of thing of poorer quality.
In English it is usually translated as “Interest” or “Usury”
2. Its prohibition in the Quran
Riba is prohibited in the Quran. This word “Riba” exists in the Quran atleast 8 times. Here are some of the verses prohibiting interest.
“Those who devour usury will not stand except as stand one whom the Evil one by his touch Hath driven to madness. That is because they say: "Trade is like usury," but Allah hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah (to judge); but those who repeat (The offence) are companions of the Fire: They will abide therein (for ever).” (Quran 2:275)
“Allah will deprive usury of all blessing, but will give increase for deeds of charity: For He loveth not creatures ungrateful and wicked.” (Quran 2:276)
“O ye who believe! Devour not usury, doubled and multiplied; but fear Allah. that ye may (really) prosper.” (Quran 3:130)
“O ye who believe! Fear Allah, and give up what remains of your demand for usury, if ye are indeed believers. If ye do it not, Take notice of war from Allah and His Messenger. But if ye turn back, ye shall have your capital sums: Deal not unjustly, and ye shall not be dealt with unjustly.” (Quran 2:278-279)
3. Prohibition of Riba in Hadith
· Hazrat Abu Hurairah r.a. reported that the Prophet (pbuh) 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 (pbuh) 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 :O Gabriel! Who are these people? He replied these are those who devoured usury. [Ahmed,Ibn Majah]
Prophet Muhammad (pbuh) classified it among the seven major sins
Narrated Abu Huraira:
The Prophet said, "Avoid the seven great destructive sins." They (the people!) asked, "O Allah's Apostle! What are they?" He said, "To join partners in worship with Allah; to practice sorcery; to kill the life which Allah has forbidden except for a just cause (according to Islamic law); to eat up usury (Riba), to eat up the property of an orphan; to give one's back to the enemy and freeing from the battle-field at the time of fighting and to accuse chaste women who never even think of anything touching chastity and are good believers." (Sahih Bukhari Volume 8, Book 82, Number 840 )
Some Muslims may argue that only the taking of interest is prohibited. But one Sahih Hadith says
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).” (Mishkat-ul-Masabih)
- Two important questions answered
Q.1 Now the question may arise, is it permissible to work in a bank?
Ans. My question is, is it permissible to work in an alcoholic bar? The answer any Muslim would give me is NO! even though I may not serve alcohol there and do some other work like keeping accounts etc. Still its prohibited to work in a bar.
So how can it be permissible to work in a bank, when interest is far worse than alcohol?
In case of alcohol Allah tells us that its satan handiwork and we should abstain from it (Quran 5:90) but in case of Riba (interest) Allah says that he and his messenger would wage war against those people who deal in riba.
So it isn’t permissible for Muslims to work in interest based banks.
Q.2 Interest covers the effect of inflation
Ans. This the most common argument that I always get. It’s a very shallow argument with no basis. Lets disprove this argument
i) Interest itself is one of the reasons of inflation. Inflation is when the price levels of commodities rise. Interest is added to the cost at every step, right from the purchase of materials to the dispatch of goods and hence the prices rise. The governments also print more money in order to get more interest from the public and that leads to inflation.
ii) Interest rates and inflation rates are never the same. Neither do the two depend on each other. Interest rates depend on the demand and supply of money whereas inflation depends upon the overall economy.
iii) what in the case of deflation? Suppose I borrow Rs.100,000 from a bank for a year and deflation takes place i.e. the purchasing power of money increases. Would the bank tell me after 1 year that I should pay back less money, lets say 95000 or 90000 and also don’t pay any interest on it because deflation has taken place? The answer is NO!
iv) The banks don’t run in order to keep up with the time value of money (Which they have invested) The purpose of any commercial bank is to make profit.
- Prohibition in the Bible
“Do not charge your brother interest, whether on money or food or anything else that may earn interest. You may charge a foreigner interest, but not a brother Israelite, (Deuteronomy
Though according to above verses interest can be charged to foreigners but there are other verses which clearly forbid it.
“Do not take interest of any kind from him, but fear your God, so that your countryman may continue to live among you.” (Leviticus 25:36)
“If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest” (Exodus
Righteous servant of God doesn’t take interest
5 "Suppose there is a righteous man who does what is just and right.
6 He does not eat at the mountain shrines or look to the idols of the house of
7 He does not oppress anyone, but returns what he took in pledge for a loan. He does not commit robbery but gives his food to the hungry and provides clothing for the naked.
8 He does not lend at usury or take excessive interest. He withholds his hand from doing wrong and judges fairly between man and man.
9 He follows my decrees and faithfully keeps my laws. That man is righteous; he will surely live, declares the Sovereign LORD. (Ezekiel 18:5-9)
But the violent one will take it
“10 "Suppose he has a violent son, who sheds blood or does any of these other things
11 (though the father has done none of them): "He eats at the mountain shrines. He defiles his neighbor's wife.
12 He oppresses the poor and needy. He commits robbery. He does not return what he took in pledge. He looks to the idols. He does detestable things.
13 He lends at usury and takes excessive interest. Will such a man live? He will not! Because he has done all these detestable things, he will surely be put to death and his blood will be on his own head” (Ezekiel
Interest is clearly prohibited in the Bible. The Christians have to follow the old Testament as well. Read Mathew 5:17-20
- Conclusion
Lets pray for the Islamic economic system which is free from Interest (Riba). Islamic banking has been introduced in many parts of the world and lets hope it grows more.
Note : All banks claiming to be Islamic may not necessarily be Islamic specially the ones who run Islamic and Commercial banking parallel. So Before dealing with it, do little bit of research in finding out if the Islamic bank is really working according to the Principals of Islam or not.
In many Western countries like USA etc. many universities have specials sections on Islamic banking. This was in brief about the prohibition of Riba (interest). Stop dealing in it if you are doing so before its too late for you. To know more about interest and the reasons for its prohibition, download this booklet.
http://documents.scribd.com/docs/1ghm4wdvt5n9i9cwtnyj.pdf
