Warning Against Riba and Explaining Its Harms and Types
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Question:
The questioner says: We hope for a guiding word for those who deal in riba (usury or interest), whether individuals, banks, or institutions, and for a clarification of the harms of riba in religion and in this world?
Answer:
Riba (usury or interest) is among the greatest of major sins. It is obligatory for every Muslim to abandon it, as Allah the Exalted said:[Al-Baqarah 2:278-279] Therefore, it is obligatory for the people of faith to abandon riba. And He, the Exalted, informed us in the verse in Surat al-Baqarah, saying: "Let there be no riba." They will not rise except as one who is delirious, driven by the devils, rises. That is, they will rise from their graves like a madman. He said: And in the authentic hadith, yes, the Messenger of Allah (peace and blessings be upon him) said: Sahih Muslim 1598 And they are equal.
So it is obligatory for every Muslim to beware of riba with banks and other than banks. Riba is of two types: riba al-fadl (usury of excess in a like-for-like exchange), which is taking gold for gold in a greater amount, or silver for silver in a greater amount, or one currency for the same currency in a greater amount, such as one riyal for two riyals, two for two pounds, or one dollar for two dollars. This is riba al-fadl.
Riba al-nasi'ah (usury of deferment) is taking it for a deferred period, such as exchanging Saudi riyals for dollars for a deferred period, or dollars for dinars for a deferred period, or sterling for gold for a deferred period. This is called riba al-nasi'ah.
And among riba is taking a specified interest. You give him one hundred, and he gives you one hundred and five after one month or two months. This is riba al-fadl and riba al-nasi'ah both. You give him a thousand, and he gives you a thousand and one hundred after one month or two months. This is riba in which both types have come together: riba al-fadl and riba al-nasi'ah. Both are forbidden (haram). We ask Allah for safety.
So it is obligatory to beware and not to be deceived by the dealings of banks. We ask Allah to guide the state to eliminate this riba from the banks, and for Islamic banks to be established, and they have promised to do so. So we ask Allah to help them in establishing Islamic banks and preventing these riba-based banks from riba, so that Muslims are safe from its evil. We ask Allah to help them and guide them to bring that about, and we ask Allah to help the scholars to follow up on the matter.
The questioner says: We hope for a guiding word for those who deal in riba (usury or interest), whether individuals, banks, or institutions, and for a clarification of the harms of riba in religion and in this world?
Answer:
Riba (usury or interest) is among the greatest of major sins. It is obligatory for every Muslim to abandon it, as Allah the Exalted said:
(278) O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. (279) And if you do not, then be informed of a war [against you] from Allah and His
يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِthe accepter of interest and its payer, and one who records it, and the two witnesses
آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِSo it is obligatory for every Muslim to beware of riba with banks and other than banks. Riba is of two types: riba al-fadl (usury of excess in a like-for-like exchange), which is taking gold for gold in a greater amount, or silver for silver in a greater amount, or one currency for the same currency in a greater amount, such as one riyal for two riyals, two for two pounds, or one dollar for two dollars. This is riba al-fadl.
Riba al-nasi'ah (usury of deferment) is taking it for a deferred period, such as exchanging Saudi riyals for dollars for a deferred period, or dollars for dinars for a deferred period, or sterling for gold for a deferred period. This is called riba al-nasi'ah.
And among riba is taking a specified interest. You give him one hundred, and he gives you one hundred and five after one month or two months. This is riba al-fadl and riba al-nasi'ah both. You give him a thousand, and he gives you a thousand and one hundred after one month or two months. This is riba in which both types have come together: riba al-fadl and riba al-nasi'ah. Both are forbidden (haram). We ask Allah for safety.
So it is obligatory to beware and not to be deceived by the dealings of banks. We ask Allah to guide the state to eliminate this riba from the banks, and for Islamic banks to be established, and they have promised to do so. So we ask Allah to help them in establishing Islamic banks and preventing these riba-based banks from riba, so that Muslims are safe from its evil. We ask Allah to help them and guide them to bring that about, and we ask Allah to help the scholars to follow up on the matter.
Source
واجب أهل العلم — islamhouse.com (1:10:37)
The Arabic text is a machine transcription of the audio recording.