The Ruling on Taking Bank Interest

Question:
Is bank interest considered riba (usury or interest) or not? And if it is riba, what is the ruling on one who takes out a loan with interest? We ask for guidance. May Allah reward you with good.

Answer:
Yes, the bank interest is riba (usury or interest). So if one borrows at one hundred and five, or one hundred and seven, or more or less, this is riba, and so is anything more than that. It is not permissible to accept this interest; rather, the one who does it must repent and turn back to Allah, seek His forgiveness, feel remorse, and not return to it. The lender is entitled only to the principal of his money, as Allah the Exalted said: It is not permissible to engage in this transaction, and a person of sound mind should not be deceived by the people who do it, despite their large numbers, for the truth is more deserving of being followed. And Allah the Exalted says:
And the Messenger (peace and blessings be upon him) said: . This hadith is clear. These transactions and these new forms of currency, such as dollars, dinars, and other paper money, all have the ruling of gold and silver. It is not permissible to sell one of them for the other with an excess, as they are of the same type, nor with a delay. Rather, it must be hand-to-hand with equality if they are of the same type, such as a dinar for a dinar, or a dollar for a dollar. But if they are of different types, such as selling a dollar for Saudi riyals, or for dinars, or for Iraqi dinars, or the like, there is no harm, but it must be hand-to-hand with immediate exchange. As for a dinar for two dinars, or a dollar for two dollars, or one hundred dollars for one hundred and five, or one hundred Saudi riyals for one hundred and five, for the sake of interest, this is not permissible. This is riba. This is the very essence of riba. We ask Allah for safety. Yes.