Ruling on working in an interest-based bank
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Question: I was in Egypt working in one of the government-owned banks. The function of this bank is to lend to farmers and others on easy terms, for periods ranging from several months to years. These loans, whether in kind or cash, are disbursed in exchange for interest and late-payment penalties, which the bank determines at the time of disbursement; for example, 3% or 7% or more, in addition to the principal of the loan. When the repayment date arrives, the bank recovers the principal plus the interest and penalties in cash, and if the client delays, an additional amount is charged for each day of delay beyond the scheduled repayment date.
Therefore, the revenues of this bank consist of: the total interest on the loans, and the late-payment penalties for those who do not adhere to the specified repayment dates. From these revenues, the salaries of the bank employees are paid.
I have been working in this bank for more than twenty years. I got married on the bank salary, I live on it, I raise my children with it, and I give charity from it. I have no other job. What is the ruling of the Shari'ah in this matter?
Answer: The operation of this bank, by taking the basic interest and the other interest for delays, is all riba (usury or interest). It is not permissible to work in such a bank; because working in it is cooperation in sin and aggression. And Allah (Glorified and Exalted is He) said: : [Al-Ma'idah: 2].
In the authentic collections, from Jabir ibn Abdullah, from the Prophet (peace and blessings be upon him):Sahih Muslim 1598. Narrated by Muslim.
As for the salaries you received, they are lawful for you if you were ignorant of the legal ruling; because of the saying of Allah (Glorified and Exalted is He):[Al-Baqarah 2:275] Allah destroys riba (usury or interest) and increases alms, and Allah does not love every persisting sinner [Al-Baqarah: 275-276].
If you knew that this work was not permissible for you, you must spend the amount of the salaries you received in charitable projects and in supporting the poor, along with repentance to Allah. And whoever repents to Allah with sincere repentance, Allah accepts his repentance and forgives his evil deeds, as He the Exalted said: [al-Tahrim:8], and He the Exalted said: [al-Nur:31].
Therefore, the revenues of this bank consist of: the total interest on the loans, and the late-payment penalties for those who do not adhere to the specified repayment dates. From these revenues, the salaries of the bank employees are paid.
I have been working in this bank for more than twenty years. I got married on the bank salary, I live on it, I raise my children with it, and I give charity from it. I have no other job. What is the ruling of the Shari'ah in this matter?
Answer: The operation of this bank, by taking the basic interest and the other interest for delays, is all riba (usury or interest). It is not permissible to work in such a bank; because working in it is cooperation in sin and aggression. And Allah (Glorified and Exalted is He) said: :
And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in penalty.
وَتَعَاوَنُواْ عَلَى الْبرِّ وَالتَّقْوَى وَلاَ تَعَاوَنُواْ عَلَى الإِثْمِ وَالْعُدْوَانِ وَاتَّقُواْ اللّهَ إِنَّ اللّهَ شَدِيدُ الْعِقَابِIn the authentic collections, from Jabir ibn Abdullah, from the Prophet (peace and blessings be upon him):
that Allah'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.
أنه لعن آكل الربا، وموكله، وكاتبه، وشاهديه، وقال: هم سواءAs for the salaries you received, they are lawful for you if you were ignorant of the legal ruling; because of the saying of Allah (Glorified and Exalted is He):
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.
وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىَ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللّهِ وَمَنْ عَادَ فَأُوْلَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ If you knew that this work was not permissible for you, you must spend the amount of the salaries you received in charitable projects and in supporting the poor, along with repentance to Allah. And whoever repents to Allah with sincere repentance, Allah accepts his repentance and forgives his evil deeds, as He the Exalted said:
O you who have believed, repent to Allah with sincere repentance. Perhaps your Lord will remove from you your misdeeds and admit you into gardens beneath which rivers flow
يَا أَيُّهَا الَّذِينَ آمَنُوا تُوبُوا إِلَى اللَّهِ تَوْبَةً نَّصُوحًا عَسَى رَبُّكُمْ أَن يُكَفِّرَ عَنكُمْ سَيِّئَاتِكُمْ وَيُدْخِلَكُمْ جَنَّاتٍ تَجْرِي مِن تَحْتِهَا الْأَنْهَارُAnd turn to Allah in repentance, all of you, O believers, that you might succeed.
وَتُوبُوا إِلَى اللَّهِ جَمِيعًا أَيُّهَا الْمُؤْمِنُونَ لَعَلَّكُمْ تُفْلِحُونَ
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.