Riba Or Interst In Islam

The curse of interest based economy M Mubashir Hassan The Arabic word riba' literally means "increase in" or "addition to" anything. In our day to day parlance it means lending a fixed sum of money to some one and getting or demanding more than the principal amount. The amount which is more than the principal amount is called the interest which in excess is called as usury. Islam prohibits it whether in small or in large quantity. The whole of the present banking business is based on it though it is strictly prohibited in Islam. Taking of riba as well as giving of it is prohibited. Allah says in sura Baqarah “Those who devour usury will not stand except as stands one whom the Evil One by his touch hath driven to madness. That is because they say: "Trade is 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 (for ever) Allah will deprive usury of all blessing but will give increase for deeds of charity: for He loveth not creatures ungrateful and wicked. Allah will deprive usury of all blessing but will give increase for deeds of charity: for He loveth not creatures ungrateful and wicked.” Al-Qur’an: 2:275-276 Syed Abu Ala Maududi comments on the first part of this verse as : “The Qur'an likens the money-lender to a madman. Just as a madman loses his sense on account of his disordered intellect, so the money-lender is so mad for money-making that he divorces himself from commonsense. He is so senselessly foolish and impudent that he does not mind how his

selfishness and greed are cutting at the very root of human love, brotherhood and fellow-feeling, and destroying the common good of mankind. He does not care at all that he is gaining prosperity at the expense of many. That is how he behaves like a madman in this world. In the next world he will rise like a madman at the time of Resurrection, for, in the Hereafter a person will rise in the same condition in which he dies here.” The usury dealings are based on exploitation whereby a needy person is exploited and some times he is literally fleeced. The money lender is safely enjoying the hard work of others. If there occurs any accident/loss, that has to be borne by the poor borrower. And if the loan is taken by a big business firm for expansion of its business, it earns manifolds while as the poor depositor gets only a nominal interest. Both ways it is exploitative in nature. Contrary to it, the system of trade is based on mutual benefit. Everyone is there to put his own efforts and is in struggle, so the economy of a nation shows blooms. Whether there is profit or loss every one has his own share. On the other hand the system of usury produces a nation of drones and parasites, the natural results of which are economic depression, unemployment. If there is high profit it is pocketed by big businessmen, if there is loss it has to be borne by the poor borrowers. Those dealing in interest argue that when profit on capital is lawful in trade, why should the interest on money invested in loans be unlawful? The difference is that while in trade a person has a share both in profit as well as in loss, while as in interest the lender gets his capital back as well as a fixed interest no matter whether there is loss or profit. What more proof of the devastating nature of this inhuman and unnatural interest system is required than this news item:”Over 1,500 farmers in an Indian state committed suicide after being driven to debt by crop failure…” what happened to those farmers was that

the interest on the principal amount had mounted so high that they were unable to repay their debts. Allah in His absolute wisdom has prohibited such a system. Islam encourages a system based on trade, charity and sympathy. The system of Zakat makes sure that the money is not hoarded by only a few persons. A person who has to pay zakat regularly would not keep his money idle for fear of its decreasing year after year, so it would be put into circulation. Besides there is voluntary Sadaqa to be given to needy. So that no person dies of hunger, so that the minimal needs of everybody are met. The magnitude of the Sin of usury can be gauged from the strong words by which Allah condemns it. “O ye who believe! fear Allah and give up what remains of your demand for usury if ye are indeed believers. If ye do it not take notice of war from Allah and his Apostle: but if ye turn back ye shall have your capital sums; deal not unjustly and ye shall not be dealt with unjustly.” (Al-Qur’an 2:278-279) And Prophet Mohammad (SAW) has said: "On the night when I was taken up to Heaven I came upon people whose bellies were like houses and contained snakes which could be seen from outside their bellies. I asked Gabriel who they were and he told me that they were people who had practiced usury." (AL Timidhi) At another place The Prophet said, "Avoid the seven great destructive sins." The people enquire, "O Allah's Apostle! What are they? "He said, "To join others in worship along with Allah, to practice sorcery, to kill the life which Allah has forbidden except for a just cause, (according to Islamic law), to eat up riba (usury), to eat up an orphan's wealth, to give back to the enemy and

fleeing from the battlefield at the time of fighting, and to accuse chaste women, who never even think of anything touching chastity and are good believers. (Al Bukhari) Keeping these things in view we should consider what should we do under such circumstances. We need to overhaul our economic system. The present day economic system is based on unIslamic principals dominated by west. Even the sovereign nations take loans on interest from each other. This whole system is based on selfishness and lack of fellow feeling. Lenders are on look out for the potential preys — borrowers. Hardening of hearts is the natural result of such a system. Money was simply a medium of exchange, but it has been turned into a commodity to trade in. But at present we are in such a mess that we can’t change the system immediately. However the immediate remedy appears to be Islamic banking, which can solve our problems to some extent till the system is completely overhauled, till then we should try to save ourselves from this curse. We do not feel any hesitation in keeping our money in fixed deposits. A better alternative was to invest in Share Market in Shari’ah compliant companies with long term perspective. And with a part of our money we can help others and our rich brothers should help other poor fellows in setting up business and they can become partners in their trade. Being Muslims what compelling necessity is there to buy luxurious cars on Bank loans, why should we make our marriages extravagant? We should be content with the fulfillment of our basic necessities. For our hopes are pinned to hereafter, which is the biggest Reality. Author can be emailed at: [email protected] Mubashir Hassan Dar S/o Manzoor Ahmad Dar

R/o Zirpora Bijbehara 9419924672