Tuesday, 21 February 2012

Usury and islam, interest Islamic perspective


Bismillah Walhamdulillah Was Salaatu Was Salaam 'ala Rasulillah
As-Salaam Alaikum Wa-Rahmatullahi Wa-Barakatuhu 

Usury and islam


 
 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]

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