One Who Is Compelled to Take a Loan from Commercial Banks
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Fatwa No. ( 1251 )
Q: Two men are compelled to take loans from commercial banks in the Kingdom, with interest on their loans, and they ask whether this falls under riba or not?
A:narratedMuslimin his Sahih from'Ubadah ibn al-Samit(may Allah be pleased with him), that the Prophet (peace and blessings be upon him) said:Sahih Muslim 1587c, andal-Bukhariand Muslimin their two Sahihs fromAbu Sa'id al-Khudri(may Allah be pleased with him) said: The Messenger of Allah (peace and blessings be upon him) said:Sahih Muslim 1584a, and in another wording:Sahih Muslim 1584e It was narrated by Ahmad and al-Bukhari. There is no doubt that paper currency is among the currencies in which riba (usury or interest) applies, since it has now taken the place of gold and silver in pricing. Therefore, both riba al-fadl (usury of excess in a like-for-like exchange) and riba al-nasi'ah (usury of deferment) apply to it. Whoever borrows a sum of money on the condition of interest has combined riba al-fadl and riba al-nasi'ah. The riba al-fadl lies in the fact that he took a sum of one thousand riyals (1000 riyals) and gave back one thousand and one hundred (1100 riyals), for example. The riba al-nasi'ah lies in the fact that he took the sum immediately and returned it with its interest after a period of a year, or less, or more, as agreed upon. Consequently, what the two questioners asked about is considered explicit riba, falling under the warning of Allah the Exalted, as He said:
[Al-Baqarah 2:275-276] the verse. And what the two questioners mentioned, that many people deal with banks in this manner, is not considered a justification for making permissible what Allah has forbidden for His servants. Indeed, the lawful is clear and the forbidden is clear, and Allah is the Reckoner of His servants. Whoever does an atom's weight of good will see it, and whoever does an atom's weight of evil will see it, and everyone is rewarded for his deed; if it is good, then good, and if it is evil, then evil. And Allah is the One to be sought for help.
Q: Two men are compelled to take loans from commercial banks in the Kingdom, with interest on their loans, and they ask whether this falls under riba or not?
A:narratedMuslimin his Sahih from'Ubadah ibn al-Samit(may Allah be pleased with him), that the Prophet (peace and blessings be upon him) said:
Gold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, and salt by salt, like for like and equal for equal, payment being made hand to hand. If these classes differ, then sell as you wish if payment is made hand to hand.
الذهب بالذهب، والفضة بالفضة، والبر بالبر، والشعير بالشعير، والتمر بالتمر، والملح بالملح مثلاً بمثل سواء بسواء، يدًا بيد، فإذا اختلفت هذه الأصناف فبيعوا كيف شئتم، إذا كان يدًا بيدDo not sell gold for gold, except like for like, and don't increase something of it upon something; and don't sell silver unless like for like, and don't increase some thing of it upon something, and do not sell for ready money something to be given later.
لا تبيعوا الذهب بالذهب إلا مثلاً بمثل، ولا تشفوا بعضها على بعض، ولا تبيعوا الورق بالورق إلا مثلاً بمثل، ولا تشفوا بعضها على بعض، ولا تبيعوا منها غائبًا بناجزGold is to be paid for by gold, silver by silver, wheat by wheat, barley by barley, dates by dates, salt by salt, like by like, payment being made hand to hand. He who made an addition to it, or asked for an addition, in fact dealt in usury. The receiver and the giver are equally guilty.
الذهب بالذهب، والفضة بالفضة، والبر بالبر، والشعير بالشعير، والتمر بالتمر، والملح بالملح، مثلاً بمثل يدًا بيد، فمن زاد أو استزاد فقد أربى، الآخذ والمعطي فيه سواء(275) Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein. (276) Allah destroys interest and gives increase for charities
الَّذِينَ يَأْكُلُونَ الرِّبَا لاَ يَقُومُونَ إِلا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَنْ جَاءَهُ مَوْعِظَةٌ مِنْ رَبِّهِ فَانْتَهَى فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ وَمَنْ عَادَ فَأُولَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ (275) يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.