Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.
Riba is forbidden in Islamic Sharia as it was forbidden in other monotheist religions. Allah Says (interpretation of meaning) about the Jews: {And their taking of Ribâ (usury) though they were forbidden from taking it and their devouring of men's substance wrongfully (bribery, etc.) [4: 161].
The reason behind forbidding it is clear. It is consuming the belongings of people without legal right. It also gives the rich people monopoly of all the money and does not help the poor.Also, giving loans with interests results in hatred and enmity between people and it causes severing of relations between them. Islam calls for unity while Riba causes disunity in the single Muslim Ummah. Islam also urges rich people to be compassionate towards poor ones while Riba results in the opposite.
A Muslim duty is to surrender to the Divine Instructions, to adhere to them, to do what is Halal and to avoid what is Haram, since Islam is based on total submission to Allah, The Exalted, whether one knows or not the wisdom or reason behind the Divine Teachings.
Allah says: {It is not for a believer, man or woman, when Allâh and His Messenger have decreed a matter that they should have any option in their decision. And whoever disobeys Allâh and His Messenger, he has indeed strayed in a plain error.} [33:36]
However, scholars of Islam mentioned many causes and bad consequences due to dealing in Riba (usury and interest). Among them are: (1)- taking the other's property without making effort, (2) exploiting the needy's difficult situation, (3) killing the spirit of co-operation and showing mercy among Muslims, (4) building financial relations on greediness, (5) establishing rancor between the poor and the rich, and (6) dividing society into exploiters and exploited segments.
Here, we say that Allah, the Exalted, has urged Muslims to give beautiful loans and promised those who give such a loan that He will increase their reward. Such a Divine legislation is made for the sake of establishing co-operation and mercy among Muslims.
In addition to that, the Prophet (Sallallahu Alaihi wa Sallam) said: "Allah has cursed Riba, the one who receives it, the one who gives it, the one who write down its document and the two witnesses… All are equal in sin."
Allah knows best.
Allah says: {It is not for a believer, man or woman, when Allâh and His Messenger have decreed a matter that they should have any option in their decision. And whoever disobeys Allâh and His Messenger, he has indeed strayed in a plain error.} [33:36]
However, scholars of Islam mentioned many causes and bad consequences due to dealing in Riba (usury and interest). Among them are: (1)- taking the other's property without making effort, (2) exploiting the needy's difficult situation, (3) killing the spirit of co-operation and showing mercy among Muslims, (4) building financial relations on greediness, (5) establishing rancor between the poor and the rich, and (6) dividing society into exploiters and exploited segments.
Here, we say that Allah, the Exalted, has urged Muslims to give beautiful loans and promised those who give such a loan that He will increase their reward. Such a Divine legislation is made for the sake of establishing co-operation and mercy among Muslims.
In addition to that, the Prophet (Sallallahu Alaihi wa Sallam) said: "Allah has cursed Riba, the one who receives it, the one who gives it, the one who write down its document and the two witnesses… All are equal in sin."
Allah knows best.
