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RIBA in Islam┇INTEREST in Islam, Quran & Hadith┇USURY in Islam & WHY Interest is EVIL & a MAJOR SIN - YouTube
Channel: The Sincere Seeker
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Riba
Riba in Arabic translates to mean growth,
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increase, addition, excess, expansion, or
surplus. Riba denotes an addition to or an
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increase of any commodity over and above its
original size or amount. Riba is often translated
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to the English word usury. Usury in the English
language refers to the illegal action or practice
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of lending money at unreasonably high rates
of interest. Whereas usury is understood as
[37]
the lending of money at a high rate of interest,
the word Riba—as stated in Islam and the
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terminology of the Holy Quran--is the lending
of money on interest regardless of the rate
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of interest, whether low or high. Amongst
the most common types of Riba is the act of
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lending out money and loans with the condition
that the principle is returned with an additional,
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pre-specified quantity of funds, known today
as interest.
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“O you who have believed, do not consume
usury, doubled and multiplied, but fear Allah
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that you may be successful” (Quran 3:130)
The Holy Quran mentions the word Riba or usury
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in eight separate instances. The Quran condemns
the taking of and profiting from Riba, considering
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this practice a foul and filthy act. A very
forceful and condemning mode of language is
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used in the Holy Qur’an to describe those
that accept interest. Riba counts in fact
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amongst the most destructive sins in the religion
of Islam, ranking amongst the seven deadly
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sins mentioned by Prophet Muhammad peace be
upon him; a severe list of sins that also
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includes murder.
Riba is considered an unnatural growth of
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wealth; an unjust transfer of wealth; an unethical
and harmful act, and a means of devouring
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the wealth of others. Riba is considered economic
slavery, which makes the poor poorer, and
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the rich richer; a practice that prevents
the poor from overcoming their weakened financial
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conditions and prospering. The one lending
the money is not providing a service, instead
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solely profiting from the lending of money.
This practice denies the poor the opportunity
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to get out of their situation. The one with
the capital will remain rich for life since
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they eliminate the possibility of suffering
losses and expanding their wealth as they
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extract funds from one borrowing money.
The act of Riba prevents wealth from circulating
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in the economy. The taking of Riba or usury
is a very selfish act; one which allows wealthy
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people to become wealthier. When money is
loaned on interest, the loan is made without
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any involvement of labor or effort, and without
the assumption of any risk which would increase over
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time. Interest was often used in history as
a form of oppression, where the rich lend
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to the poor knowing that the borrower can’t
pay back the loan. So ultimately, they were
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forced to sell themselves, their wives, and
their property to return the funds.
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Consuming Riba is the only crime that God
the Almighty declared and waged war against
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those who consume it.
“And if you do not, then be informed of
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a war [against you] from Allah and His Messenger.
But if you repent, you may have your principal
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- [thus] you do no wrong, nor are you wronged”
(Quran 2:279)
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The two main types of Riba are ‘Riba an
Nasiyah’ and ‘Riba al Fadl.’
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‘Riba an Nasiyah,’ is also known as compound
interest and Riba Al-Quran, because the Holy
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Quran has specifically prohibited this form
of Riba; one commonly practiced in pre-Islamic
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Arabia at the time. This type of Riba is
a loan contract; a credit transaction with
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a pre-determined or pre-agreed increase or
interest which a lender receives over and
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above the original principle. This Riba involves
growth in the loan amount over time. An example
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of this is the parable in which Peter lends
Adam a loan for $100, with the agreement he
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will get $120 back. This also includes modern
lending methods such as card cards, home mortgages,
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automotive loans, a personal loan from a bank,
student loans, and Bank certificate of deposits
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(CD).
Riba al Fadl, also known as Riba al-Hadith
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because it was classified as Riba in a narration
of Prophet Muhammad peace be upon him, is
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an immediate sale or exchange of a commodity
such as gold, silver, wheat, barley, dates,
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salt, oil, sugar, or cotton of unequal quantities
of the same commodity. When an exchange is
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made of the same commodity but in a different
amount of quantity, the extra amount would
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be considered Riba. Two main criteria qualify
this sale or transaction as Riba: the delay
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in time, so the exchange of both parties must
happen at the same time, and the difference
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in quality in an exchange of the same commodity.
Both commodities must be equal in quantity.
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An example of this Riba will occur if Peter
gives Adam 100 kg of dates for 50 kilograms
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of better-quality in a single lending session.
Our Prophet peace be upon him narrated: ‘Gold
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for gold, silver for silver, wheat for wheat,
barley for barley, a date for date, salt for
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salt, must be equal on both sides and hand
to hand. Whoever pays more or demands more
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(on either side) indulges in Riba’.
God states that the one who consumes Riba
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will not stand up on the Day of Resurrection,
except as they stand like those who have been
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touched and beaten by the devil leading him
to insanity; which means that they won’t
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be able to think right on that Day, acting
as if he or she were possessed.
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“Those who consume interest cannot stand
[on the Day of Resurrection] except as one
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stand who is being beaten by Satan into insanity...”
(Quran 2:275)
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Then the Verse says:
“...That is because they say, “Trade is
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[just] like interest.” But Allah has permitted
trade and has forbidden interest. So whoever
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has received an admonition from his Lord and
desists may have what is past, and his affair
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rests with Allah. But whoever returns to [dealing
in interest or usury] - those are the companions
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of the Fire; they will abide eternally therein"
(Quran 2:275)
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God rendered everything harmful to an individual
or society haram (prohibited). There is a
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crucial difference between business or trade
and usury. Riba is detrimental to the economy,
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whereas business is healthy. Riba is the opposite
of business. The administration of business
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comprises labor, effort, and risk, whereas
the act of Riba does not consist of effort,
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labor, or risk; as the person lending the
money with interest is guaranteed to win,
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whether the person taking the loan prospers
or loses money. The gain of the person receiving
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interest becomes the loss of the person paying
it. These transactions do not qualify as business
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transactions; rather, they are merely rip-off
scams. Business transactions ought to take
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place in a free and fair market, where there
is a risk, profit, and loss—not where there
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is guaranteed profit, without risk and loss,
which is unfair and unethical as it corrupts
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and destroys the free market.
Riba and usury is pure evil because it ‘lends’
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itself most literally to a system of economic
oppression and injustice. This system has
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a negative effect, not only individually but
also on a societal level. It deprives people
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of their wealth, businesses, and homes, and
causes a lot of pain and suffering; all of
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which contradicts the core Islamic teachings
of social justice. The one that is involved
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in Riba continually lives in sin as his money
his constantly sinning for him or her.
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“O you who have believed, do not consume
one another’s wealth unjustly but only [in
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lawful] business by mutual consent. And do
not kill yourselves [or one another]. Indeed,
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Allah is to you
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ever Merciful” (Quran 4:29)
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In an instance of Riba, if a family buys a
home for $300k with a 5% interest rate on
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a 30-year mortgage, they will wind up paying
more than $520k with interest. In addition,
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they have to pay the interest first before
paying the principle.
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The religion of Islam is not the only faith
that bans Riba. The prohibition of Riba also
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has been revealed in the past Scriptures,
including the Injeel (Gospel) and the Torah.
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So both Christians and Jews know the evils
and dangers of the illegal act of taking interest
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and its punishment, as mentioned in their
Books. It was only in 1832 that the Catholic
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Church started to permit usury. According
to the Bible:
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“If you lend money to one of my people among
you who is needy, do not treat it like a business
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deal; charge no interest" (Exodus 22:25)
‘If any of your fellow Israelites become
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poor and are unable to support themselves
among you, help them as you would a foreigner
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and stranger, so they can continue to live
among you. Do not take interest or any profit
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from them, but fear your God, so that they
may continue to live among you’ (Leviticus
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25:35-36)
‘He lends at interest and takes a profit.
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Will such a man live? He will not! Because
he has done all these detestable things, he
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is to be put to death; his blood will be on
his own head’ (Ezekiel 18:13)
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Unfortunately, today we live in a world whose
economy has been immersed in a system of interest;
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where many countries lend out money to other
countries who are desperate to accept it,
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enslaving them and their people. Even Muslim
countries have come into a state of debt with
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interest to other countries, rendering them
slaves to those countries.
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Unfortunately, today we live in a world where
Riba and usury is sometimes concealed and
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disguised with the utmost deception--where
even certain bankers and experts would not
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recognize the evil and the oppression that
is happening in these situations. Wealth is
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continuously extracted from the masses through
deception and other forms of evils and fraud.
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Unfortunately, today we live in a world where
the modern Banking system manufactures money
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out of nothing; which is a form of Riba and
can lead to the devouring of wealth through
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inflation. Throughout history, societies
have always used as forms of payment coins
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made from precious metals, e.g., Gold and
Silver, as a basis for trade and store of
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value; however, the practice of modern banking
replaced these traditional asset-based systems
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with paper-based banknotes.
Prophet Muhammad peace be upon him stated:
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‘There are seventy-two types of Riba, the
least of which is like a man committing incest
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with his mother.’ He also stated that the
punishment of those who devour usury in the
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hereafter would involve an act in which God
the Almighty would enlarge their bellies like
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houses, filling them with snakes which can
be seen from the outside.
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To my dear brother and sister, note the evil
and dangers of Riba and usury, and save yourself
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and your families from this sin. Note that
there will be no blessings inherent in money
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taken from Riba, and God will even make that
money vanish.
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‘And whatever you give for interest to increase
within the wealth of people will not increase
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with Allah. But what you give in zakah (charity),
desiring the countenance of Allah - those
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are the multipliers’ (Quran 30:39)
If you consume Riba, your life will soon come
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to destruction. Think about your relationship
with your Creator and how to please Him, and
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do not fall into the footsteps of satan by
consuming Riba, thinking it will profit you
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or provide security for your family. Realize
the truth that substance and protection come
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only from Allah, the Glorious. Buy that only
which you can afford, realizing that Allah
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disallows and prohibits that which harms you
or society.
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‘O you who have believed, fear Allah and
give up what remains [due to you] of interest
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if you should be believers’ (Quran 2:278)
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