Usury — Definition and Prohibition
Usury (Riba) — Definition and Prohibition
📖 The Scene: The Farewell Pilgrimage Sermon — Mount Arafat
One hundred thousand Companions stand attentively as the Prophet ﷺ delivers his magnificent farewell sermon...
The Prophet ﷺ (with a voice that shakes the earth): Indeed! Everything from the Days of Ignorance (Jahiliya) is abolished beneath my feet!
A solemn silence falls upon the gathering...
The Prophet ﷺ: The usury of Jahiliya is abolished! And the first usury I abolish is our own usury: that of 'Abbas ibn 'Abd al-Muttalib — it is entirely abolished!
A Companion whispers to his neighbor in astonishment...
The Companion: He started with his own uncle! Al-'Abbas is among the wealthiest of Quraysh, and the Prophet ﷺ has canceled all the interest owed to him!
The Narrator: At that moment, the Prophet ﷺ announced the end of the era of usury and the beginning of the era of economic justice in Islam...
Definition of Usury (Riba)
📜 Linguistic and Legal Definition
Linguistically: Riba comes from the Arabic root "rabā" meaning: to grow, increase, rise.
Allah says: {You see the earth barren, but when We send down water upon it, it stirs and swells (rabat)}
— Al-Hajj: 5
Legally: A specified increase in certain categories of usurious goods, or an increase in debt in exchange for postponement of the due date.
Tree of Types of Usury
Types of Riba Tree
Excess in quantity during exchange
Delay in exchange
Interest loan: 100 → 120
Delayed delivery of ribawi goods
📖 From the Stories of the Salaf: 'Umar ibn al-Khattab and Usury
📖 At the Consultative Council — Madinah
'Umar ibn al-Khattab (may Allah be pleased with him) sits with the senior Companions, discussing a legal matter...
'Umar (reflecting): O my brothers, the last verse revealed of the Quran was the verse on usury...
Ibn 'Abbas (listening attentively): You have spoken the truth, O Commander of the Faithful.
'Umar: And the Messenger of Allah ﷺ was taken from us without fully explaining it to us... So leave usury AND doubt!
A Companion: Doubt, O Commander of the Faithful?
'Umar (firmly): Yes! Whatever makes you doubt — is it usury or not? — abandon it! We left nine-tenths of what is permissible for fear of usury!
Those present fall silent, deeply moved...
The Lesson: If 'Umar (may Allah be pleased with him) — with his keen jurisprudence and vast knowledge — took such precautions, what about us in an era where usurious transactions are everywhere?
The Prohibition of Usury in the Quran
Stages of Riba Prohibition in Quran
Stage ①: Disapproval
﴾Whatever you give in usury does not increase with Allah﴿ [Ar-Rum: 39]
Stage ②: General Prohibition
﴾Do not consume Riba doubled and multiplied﴿ [Âl 'Imran: 130]
Stage ③: Categorical Prohibition
﴾Allah has permitted trade and forbidden Riba﴿ [Al-Baqara: 275]
Stage ④: Divine War Declaration
﴾Then be warned of war from Allah and His Messenger﴿ [Al-Baqara: 279]
First Verse: General Prohibition
📜 The Prohibition of Multiplication
{O you who believe! Do not consume usury, doubled and multiplied. And fear Allah that you may be successful}
— Al 'Imran: 130
Second Verse: The Annihilation of Blessing
📜 Annihilation and Growth
{Allah destroys usury (riba) and gives increase for charities. And Allah does not love every sinful ingrate}
— Al-Baqarah: 276
Third Verse: Explicit Prohibition
📜 Trade is Lawful, Usury is Unlawful
{Allah has permitted trade and has forbidden usury}
— Al-Baqarah: 275
Fourth Verse: Allah's Declaration of War
📜 The Most Severe Threat in the Quran
{O you who believe! Fear Allah and give up what remains of usury if you are believers. If you do not, then be informed of a war from Allah and His Messenger}
— Al-Baqarah: 278-279
📖 Reflection: The Most Severe Threat in the Quran!
There is no threat in the Quran of war from Allah and His Messenger except for usury!
- The fornicator is punished... but no war is declared against him
- The murderer faces retribution... but no war is declared against him
- The thief has his hand cut... but no war is declared against him
Only the consumer of usury has war declared against him by the Lord of the Worlds!
The Prohibition of Usury in the Prophetic Sunnah
First Hadith: Among the Seven Destructive Sins
📜 Usury Among the Destroyers
The Prophet ﷺ said: "Avoid the seven destructive sins... and consuming usury..."
— Agreed upon (Bukhari and Muslim)
Second Hadith: The Curse on All Participants
📜 The Comprehensive Curse
Jabir (may Allah be pleased with him) said: "The Messenger of Allah ﷺ cursed the one who consumes usury, the one who gives it, the one who records it, and the two witnesses, and he said: They are all equal."
— Reported by Muslim
Those Cursed in a Riba Transaction
Third Hadith: The Atrocity of Usury
📜 Worse than Adultery
The Prophet ﷺ said: "Usury has seventy-three doors, the least of which is like a man sleeping with his own mother!"
— Reported by Ibn Majah and al-Hakim
⚠️ Note: This hadith has a weak chain of transmission according to many hadith scholars, but it is mentioned as a warning against usury. Its meaning regarding the gravity of usury is authentic.
Fourth Hadith: The Six Usurious Items
📜 The Hadith of Usurious Items
The Prophet ﷺ said: "Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt — like for like, hand to hand. Whoever adds or asks for more has practiced usury; the taker and the giver are equal in sin."
— Reported by Muslim
The Six Usurious Items
The Six Ribawi Commodities
Cause: monetary value
Cause: food + measure/weight
The Difference Between Trade and Usury
📖 The Argument of the People of Jahiliya
The Polytheist (protesting): What is the difference between trade and usury? Both generate profit! Trade is like usury!
Allah responds: {Allah has permitted trade and has forbidden usury}
The Jurist (explaining): The difference is immense! Let me explain to you...
| Lawful Trade | Forbidden Usury |
|---|---|
| ✅ Profit in exchange for a real good or service | ❌ Profit for money only (money for money) |
| ✅ Involves risk — may profit or lose | ❌ Guaranteed without risk — the creditor never loses |
| ✅ Benefits both parties (seller and buyer) | ❌ Harms the borrower and burdens him |
| ✅ Encourages production and work | ❌ Paralyzes production and enriches the lazy |
| ✅ Generates real economic activity | ❌ Generates fictitious economic bubbles |
The Wisdom Behind the Prohibition of Usury
Why Did Allah Forbid Riba?
Consuming wealth unjustly
- •Profit without work, effort or risk
- •Clear injustice to the borrower
Harm to the poor and needy
- •Exploiting people's needs
- •Wealth concentration among the rich
Hindering work and production
- •Those who profit without working don't work
- •Discourages creativity and production
Cutting off goodness between people
- •Interest-free loans are among the best deeds
- •Riba turns it into exploitation
Corruption of social relations
- •Creates enmity and hatred
- •Destroys compassion and solidarity
Economic crises
- •Inflation and rising prices
- •Economic collapses (2008 crisis)
📖 From History: Usury and Global Crises
📖 The 2008 Crisis — The Collapse of the Usurious System
Wall Street — New York — September 2008...
The Presenter: Breaking news! Lehman Brothers declares bankruptcy! The largest bankruptcy in American history!
The Economist (analyzing): The cause? Accumulated usurious debts! High-interest mortgages... then re-lent... then bundled into bonds... all of this is usury upon usury!
The Muslim Observer: Glory be to Allah! {Allah destroys usury}... The destruction of blessing is evident!
Millions of people lost their homes... billions evaporated... economies collapsed...
The Lesson: What Allah has forbidden is not a restriction, but protection of humanity from economic disaster.
The Dangers of Usury on the Individual and Society
On the Individual
Punishments for Riba Consumer
Loss of blessing ﴾Allah destroys riba﴿
Rising like one possessed by Satan
Swimming in a river of blood [dream hadith]
On Society
| The Effect | The Description |
|---|---|
| Inflation | Continuous rise in prices |
| Unemployment | Paralysis of real investment |
| Poverty | Concentration of wealth among a minority |
| Hostility | Hatred of the poor toward the rich |
| Collapse | Inevitable cyclical crises |
🎯 Contemporary Cases: Is This Usury?
Case 1: The Housing Loan from a Conventional Bank
❓ The Question
Ahmad wants to buy a house for 500,000 riyals. The conventional bank lends him the amount and demands repayment of 650,000 riyals over 20 years (5% interest).
Is this usury?
The Answer:
✅ Yes, this is clearly usury of delay (riba an-nasi'a)!
- The bank lent money for money
- The increase (150,000) is only in exchange for time
- No real commodity in the transaction
The Sharia-Compliant Alternative: Real estate Murabaha or Ijara (lease-to-own) through Islamic banks.
Case 2: The Credit Card
❓ The Question
Sarah uses a credit card. If she pays the full amount before the end of the month, she pays nothing extra. But if she is late, 2% monthly interest is charged.
Is using the card permissible?
The Answer:
⚖️ Details:
- ✅ Full payment before due date: Permissible — the increase did not materialize
- ❌ Late payment with interest: Forbidden usury
- ⚠️ The Risk: Possibility of falling into usury if late
📌 The Safest Option: Use debit cards or Islamic credit cards.
Case 3: "Buy Now, Pay Later" Apps
❓ The Question
An app allows Khalid to buy a phone for 3,000 riyals in 4 installments without interest. But if he is late, late fees of 50 riyals are added.
What is the ruling?
The Answer:
⚖️ Details:
- ✅ Installment payment without increase: Permissible — this is installment sale
- ❌ Late fees: Forbidden usury — increase in exchange for delay
📌 The Advice: Use these apps cautiously and meet deadlines.
Case 4: Savings Account in a Conventional Bank
❓ The Question
Abdullah deposited 100,000 riyals in a savings account, the bank gives him 3% annually (3,000 riyals).
Are these "profits" permissible?
The Answer:
❌ This is clearly usury!
- The bank borrowed money from you
- It returns more than it took
- This is interest = usury of delay
The Sharia-Compliant Alternative: Investment accounts in Islamic banks (Mudaraba).
Case 5: Personal Loan for an Employee
❓ The Question
Muhammad is an employee who needs 50,000 riyals. The bank lends him the amount to be deducted from his salary monthly for two years, with an addition of 5,000 riyals (administrative fees).
Is this permissible?
The Answer:
❌ Forbidden usury!
- "Administrative fees" are interest under another name
- What matters are realities, not names
- Loan of 50,000 and repayment of 55,000 = usury
The Sharia-Compliant Alternative: Interest-free loan from family/friends, or Islamic financing.
Consensus on the Prohibition of Usury
📜 The Consensus of the Ummah
Ibn Qudama (may Allah have mercy on him) said: "Muslims are unanimous that usury is forbidden."
Ibn Rushd (may Allah have mercy on him) said: "Scholars agree that usury is among the major sins."
An-Nawawi (may Allah have mercy on him) said: "Usury is forbidden by the Book, the Sunnah, and Consensus."
Usury is among the things known of the religion by necessity, and whoever denies its prohibition is a disbeliever who has left the community.
Repentance from Usury
📖 The Path of Repentance
The Repentant: O Sheikh, I used to practice usury out of ignorance, and now I have repented to Allah. What should I do?
The Sheikh: Rejoice my son, the door of repentance is open!
Conditions of Repentance
Conditions for Repentance from Riba
① Immediate cessation
Close all usurious accounts and loans
② Regret for the past
Sorrow for the sin
③ Resolution not to return
Sincere intention never to repeat
What Does the Repentant Do with the Interest?
📜 Only the Principal
{If you repent, you may have your principal. You do no wrong, and you are not wronged}
— Al-Baqarah: 279
- If you were the creditor: Take only your principal, do not claim interest
- If you were the borrower: Pay what you owe and seek Allah's forgiveness
- Interest previously received: Spend on general Muslim interests (it is not charity!)
Sharia-Compliant Alternatives
Islamic Alternatives to Riba
Benevolent Loan (Qard Hasan)
- •Interest-free lending
- •Great reward with Allah
Musharakah (Partnership)
- •Capital partnership
- •Profit and loss sharing
Mudarabah
- •Capital from one, work from another
- •Profit by agreed ratio
Murabaha
- •Purchase then resale with known profit
- •Installment payment is allowed
Ijara Muntahia bi Tamlik
- •Lease then ownership
- •For vehicles and real estate
💡 Stop and Reflect
📜 Allah's Promise to the Pious
{Whoever fears Allah, He will make for him a way out. And will provide for him from where he does not expect}
— At-Talaq: 2-3
Question for Reflection:
If you had a sum of money to invest, and the choices before you were:
- A bank deposit at 5% annual interest (guaranteed but forbidden)
- A partnership in a business project (risky but permissible)
Which would you choose? And why?
Remember:
- Allah does not forbid anything except that He gives you a better alternative
- Usury may increase money in appearance, but annihilates its blessing in reality
- Lawful earnings may be less in quantity, but greater in blessing
Summary Table: Types of Usury
| The Type | The Definition | The Example | The Ruling |
|---|---|---|---|
| Riba al-Fadl | Difference in usurious items | Gold for gold with surplus | Forbidden |
| Riba an-Nasi'a | Delay in receiving | Gold for silver deferred | Forbidden |
| Riba of Loans | Increase in exchange for time | Loan of 100, return 110 | Forbidden |
| Riba of Jahiliya | "Either pay or it increases" | Doubling debt upon delay | Forbidden |
🔑 Lesson Summary
Summary: Riba - Definition and Prohibition
Riba = conditional surplus in ribawi goods or for delay
Forbidden by Quran, Sunnah and consensus
Severest threat in Quran: war from Allah and His Messenger
Five cursed: taker, giver, scribe, two witnesses
Repentance open: cease, regret, don't repeat
Alternatives available: musharakah, mudarabah, murabaha, ijara
﴾Whoever fears Allah, He will make for him a way out﴿
Rabbi Zidni 'Ilma — My Lord, increase me in knowledge