RIBA (USURY/INTEREST) IN ISLAM.

RIBA (USURY/INTEREST IN ISLAM :-

CONTENTS :-

1) DEFINITION OF RIBA (USURY/INTEREST).

2) ISLAMIC RULING ON RIBA,EVIDENCE FOR ITS PROHIBITION FROM QURAN.

3) EVIDENCE FOR ITS PROHIBITION FROM HADITH.

4) DETAILED EXPLANATION OF RIBA ON EXCHANGE & SELLING.

5) PUNISHMENT FOR RIBA.

6) WORKING IN RIBA BASED BANK.

7) PROHIBITION ON RIBA IN DAR AL-HARB (CONTRACT WITH A NON-MUSLIM)

8) RULING ON BORROWING A LOAN FROM RIBA BASED BANKS.

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1) DEFINITION OF RIBA (USURY/INTEREST).

Linguistically the word Riba means to increase, to grow, to exceed, to be more than.In context of interest/usury, the word “Riba” is used as increase in wealth.

Shara’i meaning & terms:

The most common application of Riba is on monetary transaction relating to “loans” and “credits”. A simple example of loan is when Lender gives $1000 to a Debtor with an agreement that Debtor will return $1200 on specified date. Hence, the Lender will receive extra $200 (either as his service fee, rent, income, or reward for lending money for stated time period). This extra $200 is absolute form of Riba in Islamic Shariah.

Similarly, other financial transactions involving Riba, such as advancing money on interest, keeping deposits in a bank for the sake of earning interest, or getting concessions in rates of goods or commodities against advance payments of price, mortgaging and utilizing an income-yielding property against a certain sum, to be returned in full when the property is redeemed and investing money in a trade against a predetermined and fixed rate of profit-are all forbidden transactions because they involve Riba in some form or the other. And the person doing any of these transactions invariably pay X amount of money, but in return gets X+ more back (without profit and loss sharing).

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2) ISLAMIC RULING ON RIBA,EVIDENCE FOR ITS PROHIBITION FROM QURAN:-

Ruling – “There shall be no Riba”=== The Prophet Mohammad, may Allah‟s mercy and peace be upon` him, said in his farewell sermon: “ALLAH has forbidden you to take Riba, therefore all riba obligation shall hence forth be waived. Your capital, however, is yours to keep. You will neither inflict nor suffer inequity. Allah has judged that there shall be no riba and that all the riba due to `Abbas ibn `Abd al Muttalib shall henceforth be waived.”

O you who believe! Do not consume Riba (Interest/usury) doubled and multiplied, but fear Allah that you may be successful. And fear the Fire, which is prepared for the disbelievers.

(SURAH AL-IMRAN 3 VERSE 130-131)

Those who eat Riba will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaytan leading him to insanity. That is because they say: “Trading is only like Riba,” whereas Allah has permitted trading and forbidden Riba. So whosoever receives an admonition from his Lord and stops eating Riba, shall not be punished for the past; his case is for Allah (to judge); but whoever returns (to Riba), such are the dwellers of the Fire ـ they will Abide therein

(SURAH BAQARA 2 VERSE 275)

COMMENT :-

Here Allah swt made it clear that “trade” and “riba” are not same, and that He forbade “riba” and allowed “trade”.

And their taking of Riba though they were forbidden from taking it and their devouring men’s substance wrongfully. And we have prepared for the disbelievers among them a painful torment.

(SURAH NISA 4 VERSE 161)

And that which you give in Riba in order that it may increase from other people’s property, has no increase with Allah; but that which you give in Zakah seeking Allah’s Face, then those they shall have manifold increase.

(SURAH AR RUM 30 VERSE 39)

Allah will destroy Riba and will give increase for Sadaqat. And Allah likes not the disbelievers, sinners

(SURAH BAQARAH 2 VERSE 276)

O you who believe! Have Taqwa of Allah and give up what remains from Riba, if you are (really) believers.

(SURAH BAQARAH 2 VERSE 278)

And if you do not do it, then take a notice of war from Allah and His Messenger but if you repent,you shall have your capital sums. Deal not unjustly, and you shall not be dealt with unjustly.

(SURAH BAQARAH 2 VERSE 279)

COMMENT :-

Quran explicitly prohibits Riba, and since Quran is an undisputed source of guidance, all Muslims unanimously agrees on prohibition of Riba. There is no difference of opinion among any school of thought on prohibition of Riba in Islamic Shariah

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3) EVIDENCE FOR ITS PROHIBITION FROM HADITH :-

Narrated Abu Juhaifa:

The Prophet forbade the use of the price of blood and the price of a dog, the one who takes (eats) usury the one who gives usury, the woman who practises tattooing and the woman who gets herself tattooed.

SAHIH BUKHARI ([Vol. 7, Book 72, Hadith 829)

Narrated Abu Hurairah:

The Apostle of Allah () as saying: Refrain from seven (characteristics) which cause destruction. He was asked: What are they, Apostle of Allah ? He replied: To assign partner to Allah, magic, to kill a soul (man) which is prohibited by Allah except for which is due, to take usury, to consume the property of an orphan, to retreat on the day of the battle, and to slander chaste women, indiscreet but believing.

ABU DAWOOD (Book 17, Hadith 2868)

It is reported on the authority of Abu Huraira that the Messenger of Allah (may peace be upon him) observed:Avoid the seven noxious things. It was said (by the hearers): What are they, Messenger of Allah? He (the Holy Prophet) replied: Associating anything with Allah, magic, killing of one whom God has declared inviolate without a just cause, consuming the property of an orphan, and consuming of usury, turning back when the army advances, and slandering chaste women who are believers, but unwary.

SAHIH MUSLIM (Book 1, Hadith 161)

It was narrated that Safwan bin ‘Assal said:

“A Jew said to his companion: ‘Let us go to this Prophet.’ His companion said to him: ‘Do not say Prophet; if he hears you, he will become big-headed.’ So they came to the Messenger of Allah [SAW] and asked him about nine clear signs. He said to them: ‘Do not associate anything with Allah, do not steal, do not commit adultery, do not kill any soul whom Allah has forbidden you to kill, except by right, do not speak falsely about an innocent man before a ruler, do not engage in magic, do not consume Riba (usury), do not slander chaste women, and do not flee on the day of the march (to battle). And for you Jews especially, do not break the Sabbath.’ They kissed his hands and feet and said: ‘We bear witness that you are a Prophet.’ He said: ‘What is keeping you from following me?’ They said: ‘Dawud prayed that there would always be a Prophet among his descendants, and we are afraid that if we follow you, the Jews will kill us.'” (Hasan)

SUNAN NASEEI (Vol. 5, Book 1, Hadith 4083)

Narrated Ibn `Umar:

`Umar delivered a sermon on the pulpit of Allah’s Apostle, saying, “Alcoholic drinks were prohibited by Divine Order, and these drinks used to be prepared from five things, i.e., grapes, dates, wheat, barley and honey. Alcoholic drink is that, that disturbs the mind.” `Umar added, “I wish Allah’s Apostle had not left us before he had given us definite verdicts concerning three matters, i.e., how much a grandfather may inherit (of his grandson), the inheritance of Al-Kalala (the deceased person among whose heirs there is no father or son), and various types of Riba(1 ) (usury) .”

SAHIH BUKHARI (Vol. 7, Book 69, Hadith 493)

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4) DETAILED EXPLANATION OF RIBA ON EXCHANGE & SELLING :-

Narrated Ibn `Abbas:

The last Verse (in the Qur’an) revealed to the Prophet was the Verse dealing with usury (i.e. Riba).

SAHIH BUKHARI (Vol. 6, Book 60, Hadith 67)

Narrated `Aisha:

When the verses of Surat “Al-Baqara”‘ about the usury Riba were revealed, the Prophet went to the mosque and recited them in front of the people and then banned the trade of alcohol.

SAHIH BUKHARI (Vol. 1, Book 8, Hadith 449)

Narrated Ibn Shihab:

that Malik bin Aus said, “I was in need of change for one-hundred Dinars. Talha bin ‘Ubaidullah called me and we discussed the matter, and he agreed to change (my Dinars). He took the gold pieces in his hands and fidgeted with them, and then said, “Wait till my storekeeper comes from the forest.” `Umar was listening to that and said, “By Allah! You should not separate from Talha till you get the money from him, for Allah’s Apostle said, ‘The selling of gold for gold is Riba (usury) except if the exchange is from hand to hand and equal in amount, and similarly, the selling of wheat for wheat is Riba (usury) unless it is from hand to hand and equal in amount, and the selling of barley for barley is usury unless it is from hand to hand and equal in amount, and dates for dates, is usury unless it is from hand to hand and equal in amount”

SAHIH BUKHARI (Vol. 3, Book 34, Hadith 382)

Abu Huraira (Allah be pleased with him) reported Allah’s Messenger (may peace be upon him) as saying:Gold is to be paid for by gold with equal weight, like for like, and silver is to be paid for by silver with equal weight, like for like. He who made an addition to it or demanded an addition dealt in usury.

SAHIH MUSLIM (Book 10, Hadith 3857)

Narrated Abu Sa`id al-Khudri:

Once Bilal brought Barni (i.e. a kind of dates) to the Prophet and the Prophet asked him, “From where have you brought these?” Bilal replied, “I had some inferior type of dates and exchanged two Sas of it for one Sa of Barni dates in order to give it to the Prophet; to eat.” Thereupon the Prophet said, “Beware! Beware! This is definitely Riba (usury)! This is definitely Riba (Usury)! Don’t do so, but if you want to buy (a superior kind of dates) sell the inferior dates for money and then buy the superior kind of dates with that money.”

SAHIH BUKHARI (Vol. 3, Book 38, Hadith 506)

Abu Sa’id al-Khudri (Allah be pleased with him) reported Allah’s Messenger (may peace be upon him) as saying:Gold 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.

SAHIH MUSLIM (Book 10, Hadith 3854)

Narrated Abu Sa`id:

We used to be given mixed dates (from the booty) and used to sell (barter) two Sas of those dates) for one Sa (of good dates). The Prophet said (to us), “No (bartering of) two Sas for one Sa nor two Dirhams for one Dirham is permissible”, (as that is a kind of usury).

SAHIH BUKHARI (Vol. 3, Book 34, Hadith 294)

Narrated `Aun bin Abu Juhaifa:

My father bought a slave who practiced the profession of cupping. (My father broke the slave’s instruments of cupping). I asked my father why he had done so. He replied, “The Prophet forbade the acceptance of the price of a dog or blood, and also forbade the profession of tattooing, getting tattooed and receiving or giving Riba, (usury), and cursed the picture-makers.”

SAHIH BUKHARI (Vol. 3, Book 34, Hadith 299)

Narrated `Abdullah bin Abu `Aufa:

A man displayed some goods in the market and took a false oath that he had been offered so much for them though he was not offered that amount Then the following Divine Verse was revealed:– “Verily! Those who purchase a little gain at the cost of Allah’s covenant and their oaths . . . Will get painful punishment.” (3.77) Ibn Abu `Aufa added, “Such person as described above is a treacherous Riba eater (i.e. eater of usury).

SAHIH BUKHARI (Vol. 3, Book 48, Hadith 841)

Narrated Abu Sa`id Al-Khudri and Abu Huraira:

Allah’s Apostle appointed somebody as a governor of Khaibar. That governor brought to him an excellent kind of dates (from Khaibar). The Prophet asked, “Are all the dates of Khaibar like this?” He replied, “By Allah, no, O Allah’s Apostle! But we barter one Sa of this (type of dates) for two Sas of dates of ours and two Sas of it for three of ours.” Allah’s Apostle said, “Do not do so (as that is a kind of usury) but sell the mixed dates (of inferior quality) for money, and then buy good dates with that money.”

SAHIH BUKHARI (Vol. 3, Book 34, Hadith 405)

Narrated Abu Burda:

When I came to Medina. I met `Abdullah bin Salam. He said, “Will you come to me so that I may serve you with Sawiq (i.e. powdered barley) and dates, and let you enter a (blessed) house that in which the Prophet entered?” Then he added, “You are In a country where the practice of Riba (i.e. usury) is prevalent; so if somebody owe you something and he sends you a present of a load of chopped straw or a load of barley or a load of provender then do not take it, as it is Riba.”

SAHIH BUKHARI (Vol. 5, Book 58, Hadith 159)

Yahya related to me from Malik that Yahya ibn Said said, “The Messenger of Allah, mayAllah bless him and grant him peace, ordered the two Sads to sell a vessel made of either gold or silver from the booty. They either sold each three units of weight for four units of weight of coins or each four units of weight for three units of weight or coins. The Messenger of Allah, may Allah bless him and grant him peace, said to them, ‘You have taken usury, so return it.’

MUWATTA MALIK (Book 31, Hadith 28)

Yahya related to me from Malik from Nafi from Abdullah ibn Umar that Umar ibn al-Khattab said, “Do not sell gold for gold except like for like, and do not increase one part over another part. Do not sell silver for silver except like for like, and do not increase one part over another part. Do not sell silver for gold, one of them at hand and the other to be given later. If someone seeks to delay paying you until he has been to his house, do not leave him. I fear rama for you.” Rama is usury.

MUWATTA MALIK (Book 31, Hadith 34)

Abu Minhal reported:

My partner sold silver to be paid in the (Hajj) season or (in the days of) Hajj. He (my partner) came to me and informed me, and I said to him: Such transaction is not desirable. He said: I sold it in the market (on loan) but nobody objected to this. I went to al-Bara’ b. ‘Azib and asked him, and he said: Allah’s Apostle (may peace be upon him) came to Medina and we made such transaction, whereupon he said: In case the payment is made on the spot, there is no harm in it, and in case (it is ‘sold) on loan, it is usury. You better go to Zaid b. Arqam, for he is a greater trader than I; so I went to him and asked him, and he said like it.

SAHIH MUSLIM (Book 10, Hadith 3859)

Abd Sa’id reported:

Bilal (Allah be pleased with him) came with fine quality of dates. Allah’s Messenger (may peace be upon him) said to him: From where (you have brought them)? Bilal said: We had inferior quality of dates and I exchanged two sa’s (of inferior quality) with one sa (of fine quality) as food for Allah’s Apostle (may peace be upon him), whereupon Allah’s Messenger (may peace be upon him) said: Woe! it is in fact usury; therefore, don’t do that. But when you intend to buy dates (of superior quality), sell (the inferior quality) in a separate bargain and then buy (the superior quality). And in the hadith transmitted by Ibn Sahl there is no mention of” whereupon”

SAHIH MUSLIM (Book 10, Hadith 3871)

Malik related to me that Zayd ibn Aslam said, “Usury in the Jahiliyya was that a man would give a loan to a man for a set term. When the term was due, he would say, ‘Will you pay it off or increase me?’ If the man paid, he took it. If not, he increased him in his debt and lengthened the term for him .”

Malik said, “The disapproved of way of doing things about which there is no dispute among us, is that a man should give a loan to a man for a term, and then the demander reduce it and the one from whom it is demanded pay it in advance. To us that is like someone who delays repaying his debt after it is due to his creditor and his creditor increases his debt.” Malik said, “This is nothing else but usury. No doubt about it.”Malik spoke about a man who loaned one hundred dinars to a man for two terms. When it was due, the person who owed the debt said to him, “Sell me some goods, whose price is one hundred dinars in cash for one hundred and fifty on credit.” Malik said, “This transaction is not good, and the people of knowledge still forbid it.”Malik said, “This is disapproved of because the creditor himself gives the debtor the price of what the man sells him, and he defers repayment of the hundred of the first transaction for the debtor for the term which is mentioned to him in the second transaction, and the debtor increases him with fifty dinars for his deferring him. That is disapproved of and it is not good. It also resembles the hadith of Zayd ibn Aslam about the transactions of the people of the Jahiliyya. When their debts were due, they said to the person with the debt, ‘Either you pay in full or you increase it.’ If they paid, they took it, and if not they increased debtors in their debts, and extended the term for them.”

MUWATTA MALIK (Book 31, Hadith 84)

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5) PUNISHMENT FOR RIBA :-


And you see many of them hurrying towards sin and transgression, and eating illegal things [as bribes and riba (usury)]. Evil indeed is that which they have been doing.

(SURAH MAIDAH 5 VERSE 62)

The Prophet (peace and blessings of Allaah be upon him) said: “A dirham which a man consumes as riba knowingly is worse before Allaah than thirty-six acts of zina.”

(MUSNAD AHMAD,TABARANI)
(SAHEEH AL-JAAMI NO 3375)

He (P.B.U.H) said: “There are seventy-two types of riba, the least of which is like a man committing incest with his mother.”

(TABARANI IN AL-AWSAT,SAHEEH AL-JAAMI NO 3537)

Narrated `Abdullah bin Abu `Aufa:

A man displayed some goods in the market and took a false oath that he had been offered so much for them though he was not offered that amount Then the following Divine Verse was revealed:– “Verily! Those who purchase a little gain at the cost of Allah’s covenant and their oaths . . . Will get painful punishment.” (3.77) Ibn Abu `Aufa added, “Such person as described above is a treacherous Riba eater (i.e. eater of usury).

SAHIH BUKHARI (Vol. 3, Book 48, Hadith 841)

Narrated Abdullah ibn Mas’ud:

The Apostle of Allah () cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it.

ABU DAWOOD (Book 22, Hadith 3327)

Narrated Abu Juhaifa:

The Prophet cursed the lady who practices tattooing and the one who gets herself tattooed, and one who eats (takes) Riba’ (usury) and the one who gives it. And he prohibited taking the price of a dog, and the money earned by prostitution, and cursed the makers of pictures.

SAHIH BUKHARI (Vol. 7, Book 63, Hadith 259)

Abdullah bin Mas`ud (May Allah be pleased with him) reported:

The Messenger of Allah () cursed the one who accepts Ar-Riba (the usury) and the one who pays it.

SAHIH MUSLIM (Book 18, Hadith 1615)

Narrated `Aun bin Abu Juhaifa:

My father bought a slave who practiced the profession of cupping. (My father broke the slave’s instruments of cupping). I asked my father why he had done so. He replied, “The Prophet forbade the acceptance of the price of a dog or blood, and also forbade the profession of tattooing, getting tattooed and receiving or giving Riba, (usury), and cursed the picture-makers.”

SAHIH BUKHARI (Vol. 3, Book 34, Hadith 299)

Narrated Samura bin Jundub::-

…………. So we went on and came to a river – I think he said, red like blood. – In the river there was a man swimming, and on the bank there was a man who had gathered many stones. Whilst the swimmer was swimming, the man who had gathered the stones approached him. The swimmer opened his mouth and the man on the bank threw a stone into it, then the swimmer carried on swimming. Each time he came back, he opened his mouth again, and the man on the bank threw another stone into his mouth. I said to my two companions, ‘Who are these two persons?’They said, ‘Move on, move on!’ …

I said to them, I have seen many wonders this night. What do all these things mean that I have seen?’ They said: ‘We will tell you. The first man you came across, whose head was being smashed with the rock, is the man who studies the Qur’aan then he neither recites it nor acts upon it, and he goes to sleep, neglecting the obligatory prayers. The man you came across whose mouth, nose and ears were being torn from front to back, is the man who goes out of his house in the morning and tells a lie that is so serious that it spreads all over the world. The naked men and women whom you saw in a structure that resembled an oven are the adulterers and adulteresses. The man you saw swimming in the river with rocks being thrown into his mouth is the one who consumed riba (usury).”

SAHIH BUKHARI (Vol. 9, Book 87, Hadith 171)

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6) WORKING IN RIBA BASED BANK :-

It is not permissible to work in riba-based banks, with or without a salary, because the one who works in them will either be dealing directly with riba by recording or witnessing it, or he will be helping with it in some way. The riba-based banks are places of great evil in which a major sin is committed and there is no guarantee that the one who sits in such a place will not be subjected to the curse of Allaah of which He has warned those who engage in riba. There is also no guarantee that the one who trains in such a place will not be tempted by his self that is inclined towards evil to carry on working there because of the temptation he finds there.

Working in RIBA based bank as a Accountant, Maintenance or system Engg, driver, guard or cleaner etc.

Jabir said that Allah’s Messenger (may peace be upon him) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said:
They are all equal.

SAHIH MUSLIM (Book 10, Hadith 3881)

IMAM AL-NAWAWI SAID :-

This is clearly a prohibition of the writing down or witnessing of a contract between the two parties involved in a riba-based deal. It also includes a prohibition of helping others to commit wrong acts. And Allaah knows best.

It is inevitable that the employee in a riba-based bank will play a part in riba dealings one way or another, even if he is just a security guard.

SHAYKH AL-BARRAAK SAID :-

If the operations of the bank are run in accordance with Islamic guidelines, there is nothing wrong with working there, even if it is not called an Islamic Bank. But if its operations are based on riba in lending and borrowing, or other haraam things, then it is not permissible to work there even if it is called an Islamic bank. What matters is what really happens, not mere names.

SHAYKH IBN UTHAYMEEN SAID :-

It is not permissible to work in a riba-based institution even if a person is working as a driver or guard, because that means that he is working for the riba-based institution, which implies that he approves of it. For whoever disapproves of a thing would not work to support it, so if he is working for it that implies that he approves of it, and the one who approves of something that is haraam is also guilty of sin.

(FATAAWA ISLAMIYYAH 2/401)

FURTHER HE SAID :-

It is not permissible for a Muslim to work as a guard for banks that deal with riba, because this is a kind of cooperating in sin and transgression, and Allaah has forbidden that as He says (interpretation of the meaning):

“but do not help one another in sin and transgression”

(SURAH MAIDAH 5 VERSE 2)

Most of the banks deal with riba, so you have to look for a halaal means of earning a living, not this way. Based on that, it is not permissible to train in a riba-based bank, because it requires writing down riba or witnessing it.

(FATAAWA ISLAMIYYAH 2/402)

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7) PROHIBITION ON RIBA IN DAR AL-HARB (CONTRACT WITH A NON-MUSLIM) :-

In fact all riba is haraam, and it makes no difference whether it is between two Muslims or between a Muslim and a kaafir. The one who consumes riba and the one who pays it are both issued a stern warning. Allaah says (interpretation of the meaning):

O you who believe! Have Taqwa of Allah and give up what remains from Riba, if you are (really) believers.

And if you do not do it, then take a notice of war from Allah and His Messenger but if you repent,you shall have your capital sums. Deal not unjustly, and you shall not be dealt with unjustly.

(SURAH BAQARAH 2 VERSE 278-279)

Jabir said that Allah’s Messenger (may peace be upon him) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said:
They are all equal.

SAHIH MUSLIM (Book 10, Hadith 3881)

IBN QUDAAMAH SAID :-

The prohibition on riba in dar al-harb is the same as the prohibition on riba in dar al-Islam. This is the view of Maalik, al-Awzaa’i, Abu Yoosuf, al-Shaafa’i and Ishaaq. … because Allaah says (interpretation of the meaning):

“Those who consume Riba will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaytaan (Satan) leading him to insanity”

(SURAH BAQARAH 2 VERSE 275)

O you who believe! Have Taqwa of Allah and give up what remains from Riba, if you are (really) believers.

(SURAH BAQARAH 2 VERSE 278)

What is forbidden in dar al-Islam is also forbidden in dar al-harb, such as riba between two Muslims.

(AL-MUGHNI 4/47)

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8) RULING ON BORROWING A LOAN FROM RIBA BASED BANKS :-

(Borrowing) LOAN from a riba-based bank in order to buy a house,other work etc.

Dealing with riba (usury, interest) is a major sin against which Allaah has issued a stern warning. He says (interpretation of the meaning):

O you who believe! Have Taqwa of Allah and give up what remains from Riba, if you are (really) believers.

And if you do not do it, then take a notice of war from Allah and His Messenger but if you repent,you shall have your capital sums. Deal not unjustly, and you shall not be dealt with unjustly.

(SURAH BAQARAH 2 VERSE 278-279)

IBN QUDAAMAH SAID :-

Every loan in which it is stipulated that an additional payment be made is haraam, with no scholarly dispute. Ibn al-Mundhir said: They are unanimously agreed that if the lender stipulates that the borrower must pay extra or give a gift, and he gives the loan on this basis, this is riba. It was narrated from Ubayy ibn Ka’b, Ibn ‘Abbaas and Ibn Mas’ood that they forbade loans that lead to any kind of benefit (extra payment, gifts, etc).

(AL-MUGHNI 6/436)

It is haraam to take a loan from banks or elsewhere with riba, whether that is to build something or to spend it on food, or to pay for studies, clothing or medical expenses or to start a business and earn more money, or any other purpose, because of the general meaning of the verses that forbid riba, and the general meaning of the ahaadeeth which indicate that it is haraam. Similarly it is not permissible to deposit money in banks etc that pay interest.

(FATAWA AL-LAJNA AL-DAAIMAH 13/385)

Posted on September 9, 2012, in OTHERS and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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