Riba (usury or interest) according to the Quran

Riba (usury or interest) is an Arabic word that refers to the practice of usury or charging interest on loans. In Islamic finance, riba is considered haram (prohibited) because it is seen as exploitative and unjust. The concept of riba is derived from the Quran and is mentioned in several hadiths.

Islamic finance operates on the principle of profit and loss sharing, where both parties share in the risk and reward of a financial transaction. Riba is seen as contrary to this principle because it guarantees the lender a fixed return regardless of the success or failure of the borrower's business.

There are two types of riba: riba al-fadl, which refers to the practice of exchanging goods of the same type but with different quantities or qualities, and riba al-nasi'ah, which refers to the practice of charging interest on loans. Both types of riba are considered prohibited in Islamic finance.

To avoid riba, Islamic financial institutions use alternative financing methods such as profit and loss sharing, leasing, and sale contracts based on deferred payments.

Riba is a term used in Islamic finance to refer to interest or usury. In Islamic finance, lending and borrowing must be conducted in a manner that is consistent with the principles of Sharia, or Islamic law. Riba is considered haram (forbidden) in Islam because it involves making money from money, rather than from productive economic activity.

According to Islamic teachings, Riba is not limited to just interest charged on loans, but it can also refer to any kind of unjust gain or exploitation.


Here are some Quran verses that mention Riba:

"Those who devour usury will not stand except as stand one whom the Satan by his touch hath driven to [epileptic] madness. That is because they say: Trade is just like usury, but Allah hath permitted trade and forbidden usury. Those who after receiving direction from their Lord, desist, shall be pardoned for the past; their case is for Allah [to judge]; but those who repeat [the offence] are companions of the fire: They will abide therein [forever]" (Quran 2:275)

"Allah will deprive usury of all blessing, but will give increase for deeds of charity: For He loveth not any ungrateful sinner" (Quran 2:276)

These verses condemn the practice of Riba, which is considered a form of injustice and exploitation. They urge believers to fear Allah and give up the practice of Riba, warning of severe punishment for those who persist in it. The verses also make a distinction between Riba and legitimate forms of trade and investment, which are permissible in Islam.

"And whatever riba you give so that it may increase in the wealth of the people, it does not increase with Allah; and whatever zakah you give, desiring Allah’s pleasure – it is these who will get manifold increase." (Quran 30:39)

"O you who believe! Fear Allah and give up what remains of your demand for riba, if you are indeed believers." (Quran 2:278)

"Allah destroys riba and nourishes charities." (Quran 2:276)

This verse emphasizes that riba should be avoided and instead, we should fear Allah to attain success. The Quran clearly forbids usury and considers it as a major sin, and Muslims are encouraged to stay away from it.

"O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another]. Indeed, Allah is to you ever Merciful." [Quran 4:29]

"And do not approach the orphan's property except in a way that is best until he reaches maturity. And give full measure and weight in justice. We do not charge any soul except [with that within] its capacity. And when you testify, be just, even if [it concerns] a near relative. And the covenant of Allah fulfill. This has He instructed you that you may remember. Indeed, this is My path, which is straight, so follow it; and do not follow [other] ways, for you will be separated from His way. This has He instructed you that you may become righteous." [Quran 6:152-153]

"And because of their taking riba while they had been forbidden from it, and their consuming of the people's wealth unjustly. And we have prepared for the disbelievers among them a painful punishment." (Quran 5:78)

"Those who believe and do not mix their belief with injustice - those will have security, and they are [rightly] guided." (Quran 6:82)

These verses emphasize the prohibition of Riba and the severe consequences for those who engage in it, as well as the importance of conducting business transactions in a just and lawful manner.

"O you who have believed, do not consume interest, doubled and multiplied, but fear Allah that you may be successful." (Quran 3:130)

These verses emphasize the prohibition of Riba and warn against its consumption, as well as the consequences for those who engage in it.

"O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged." (Quran 2:278-279)

"And for their taking of interest while they had been forbidden from it, and their consuming of the people's wealth unjustly. And we have prepared for the disbelievers among them a painful punishment." (Quran 4:161)

"O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another]. Indeed, Allah is to you ever Merciful." (Quran 4:29)

"O you who have believed, indeed many of the scholars and the monks devour the wealth of people unjustly and avert [them] from the way of Allah. And those who hoard gold and silver and spend it not in the way of Allah - give them tidings of a painful punishment." (Quran 9:34)

"Those who consume interest will not 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. Those who have received the (Divine) Message and persist in taking interest shall be the inmates of the Fire wherein they will abide forever." (Quran 2:275-276)

These verses emphasize the prohibition of Riba in Islam and warn of severe punishment for those who engage in it.

In summary, riba is an Arabic term that refers to the prohibition of charging or paying interest on loans or any exchange of goods or services of unequal value. This concept is considered to be a major sin in Islam and is prohibited in the Quran. The Quranic verses that mention riba condemn the practice and warn of severe punishment for those who engage in it. In addition to being a sin, riba is also believed to be harmful to both individuals and society as a whole, as it creates economic imbalances and leads to financial exploitation. Therefore, Muslims are encouraged to avoid riba and instead engage in ethical financial transactions that are based on fairness and justice.


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