Riba on the Lender and the Borrower
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The first and second questions of Fatwa No. ( 3630 )
Q1, 2: Is riba (usury or interest) forbidden wherever it is found, and in whatever form, for both parties (the lender and the borrower) absolutely? Or is it forbidden only for the lender and not for the borrower? And if there is no sin or blame on the borrower, is this conditional on the need for this money, and the inability to pay and poverty? Or is need not a condition in it? If it is permissible for one who has a need, is it permissible for one who does not have a severe need to borrow from a bank that deals in riba with a stipulated annual interest rate of 15% per year, for example, where he is able to work with this money and achieve a profit greater than the stipulated interest
50% per year, for example, and thereby achieve a profit through the difference between the stipulated interest and the profit he obtained through his work with the borrowed money, 35% according to the example given, or is it not permissible?
A1, 2: First: Riba is forbidden wherever it is found, and in whatever form it is, for the owner of the capital and for the one who borrows from him with interest, whether the borrower is poor or rich, and both of them bear a sin; indeed, both of them are cursed, and whoever helps them in that, such as a writer or a witness, is also cursed; due to the generality of the established verses and hadiths indicating its prohibition. Allah the Exalted said:[Al-Baqarah 2:275-276] the verses. And 'Abd ibn al-Samit (may Allah be pleased with him) narrated from the Prophet (peace and blessings be upon him) that he
said:Sahih Muslim 1587c Narrated by Muslim in his Sahih. And Abu Sa'id al-Khudri (may Allah be pleased with him) narrated that the Prophet (peace and blessings be upon him) said: Sahih Muslim 1584a Narrated by al-Bukhari and Muslim, and Imam Ahmad and al-Bukhari narrated that the Prophet (peace and blessings be upon him) said: Sahih Muslim 1584e , and it is established from Jabir ibn 'Abd Allah (may Allah be pleased with them both) that he said: Sahih Muslim 1598 Narrated by Muslim . Banknotes in the present time have taken the place of gold and silver in being a medium of exchange, so the ruling regarding them is like the ruling regarding them. It is obligatory for every Muslim to be content with what is lawful and to beware of what Allah the Mighty and Majestic has forbidden. And Allah has widened for the Muslims the doors of work in life to earn a livelihood. So the poor person may work as a wage-earner or as a trader in the money of others through a profit-sharing partnership (mudarabah) with a share of the profit, such as half or the like, not with a share of the capital, nor with a known amount of profit in dirhams. And whoever is unable to work despite his poverty; seeking charity, zakah, and social security become permissible for him. Second: It is not permissible for a Muslim, whether rich or poor, to borrow from a bank or others with interest, 5% or 15% or more or less; because that is riba, and it is among the major sins. And Allah has made him rich in that by what He has legislated of lawful means of earning, as mentioned before, such as working for business owners as a wage-earner, or being regular in a permissible government job, or trading in the money of others through a profit-sharing partnership with a known undivided share of the profit, as mentioned before.
Q1, 2: Is riba (usury or interest) forbidden wherever it is found, and in whatever form, for both parties (the lender and the borrower) absolutely? Or is it forbidden only for the lender and not for the borrower? And if there is no sin or blame on the borrower, is this conditional on the need for this money, and the inability to pay and poverty? Or is need not a condition in it? If it is permissible for one who has a need, is it permissible for one who does not have a severe need to borrow from a bank that deals in riba with a stipulated annual interest rate of 15% per year, for example, where he is able to work with this money and achieve a profit greater than the stipulated interest
50% per year, for example, and thereby achieve a profit through the difference between the stipulated interest and the profit he obtained through his work with the borrowed money, 35% according to the example given, or is it not permissible?
A1, 2: First: Riba is forbidden wherever it is found, and in whatever form it is, for the owner of the capital and for the one who borrows from him with interest, whether the borrower is poor or rich, and both of them bear a sin; indeed, both of them are cursed, and whoever helps them in that, such as a writer or a witness, is also cursed; due to the generality of the established verses and hadiths indicating its prohibition. Allah the Exalted said:
(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. And Allah does not like every sinning disbeliever.
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 وَاللَّهُ لاَ يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍsaid:
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
الذهب بالذهب، والفضة بالفضة، والبر بالبر، والشعير بالشعير، والتمر بالتمر، والملح بالملح، مثلاً بمثل، سواء بسواء، يدًا بيد، فمن زاد أو استزاد فقد أربىDo 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 سواءAllah's Messenger (ﷺ) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: They are all equal.
لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه، وقال: هم سواء
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.