2:275 (Y. Ali) 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).
2:276 (Y. Ali) Allah will deprive usury of all blessing, but will give increase for deeds of charity: For He loveth not creatures ungrateful and wicked.
2:278 -279 (Y. Ali) 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.
2:279 (Y. Ali) 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.
4:161 (Y. Ali) That they took usury, though they were forbidden; and that they devoured men’s substance wrongfully;- we have prepared for those among them who reject faith a grievous punishment.
Narrated Abu Huraira The Prophet (SAW) 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.” Bukhari 8:82:840
Narrated Abu Said al-Khudri
Once Bilal brought Barni (i.e. a kind of dates) to the Prophet and theProphet asked him, “From where have you brought these?” Bilal replied,”I had some inferior type of dates and exchanged two Sas of it for oneSa of Barni dates in order to give it to the Prophet; to eat.” Thereupon the Prophet said, “Beware! Beware! This is definitely riba(usury)! This is definitely riba (Usury)! Don’t do so, but if you wantto buy (a superior kind of dates) sell the inferior dates for money and then buy the superior kind of dates with that money Bukhari 3:38:506
Narrated Abu Juhaifa The Prophet cursed the lady who practices tattooing and the one who gets herself tattooed, and one who eats (takes) riba‘ (usury) and the one who gives it. And he prohibited taking the price of a dog, and themoney earned by prostitution, and cursed the makers of pictures. Bukhari 7:63:259
Narrated Ibn ‘Umar
The Prophet said, “The selling of wheat for wheat is riba (usury) except if it is handed from hand to hand and equal in amount. Similarly the selling of barley for barley, is riba except if it is from hand to hand and equal in amount, and dates for dates is usury except if it is from hand to hand and equal in amount Bukhari 3:34:379
Narrated ‘Abdullah bin Abu Aufa:
A man displayed some goods in the market and took a false oath that he had been offered so much for them though he was not offered that amount Then the following Divine Verse was revealed:– “Verily! Those who purchase a little gain at the cost of Allah’s covenant and their oaths . . . Will get painful punishment.” (3.77) Ibn Abu Aufa added, “Such person as described above is a treacherous Riba-eater (i.e. eater of usury) Bukhari 3:48:841
Interest in Islam – Khalid Yasin
Muslims refer to the interest or usury applied to loans, credit purchases or other kinds of deferred payments as riba. Riba is regarded as unethical and unfair to the borrower, and is clearly forbidden in Islam.
Definition of Riba
The Arabic word riba linguistically means “an addition to, or an increase of, a thing over and above its original size or amount.” In the Qur’an, the term riba signifies an unlawful and forced addition to the payback value of money or goods lent from one person to another.
Riba falls under two main categories: Riba An-Nasia, which is interest on lent money; and Riba Al-Fadl, which is the exchange of the same commodity but of unequal quality and quantity. (For example, trading dates of superior quality for a larger quantity of dates of inferior quality).
Other Forms of Riba
Some scholars also consider all transactions which involve deception, penalize the buyer, or compromise a fair and free market as riba. In this broader sense, riba would include:
- Monopolies that control pricing
- False bidding on auction items to increase their price
- Hoarding goods to create false scarcity and demand
- Speculative transactions – such as the buying and selling of stocks, bonds and shares – particularly when there is privileged insider information
- Increasing the prices of goods in consideration of a deferred payment
- Concealing defects when selling an item
- Charging a fee for deferred payment