Contents
The
Definition Of Interest
The literal meaning of interest or Al-RIBA as it is used in the Arabic
language means to excess or increase. In the Islamic terminology interest
means effortless profit or that profit which comes free from compensation
or that extra earning obtained that is free of exchange. Hazrat Shah Waliullah
Dehlvi a great scholar and leader has given a very concise and precise
definition of interest. He says,
"Riba` is a loan with the condition that the borrower will return
to the lender more than and better than the quantity borrowed."
Interest
In Pre-Islamic Times
Hafiz Ibn Hajr writes in his commentary of Sahih Bukhari (Fathul Bari):
"Imam Malik reports on the authority of Zaid Ibn Aslam that in the period
of ignorance (pre-Islamic times) interest was changed according to the
following scheme. One person had a right in the property of another person.
It may have been a general right because of the amount lent or the price
of something purchased or in any other form. A time was set when the claim
would be settled. When the appointed time arrived the creditor would ask
the debtor if he wanted to settle the claim or pay interest with an extension
to the time. If the claim was settled then there was no increase in the
payment. Otherwise the debtor would increase the amount payable and the
creditor would extend the period further.
(Vol. IV P.264)
Interest is not a subject without trade and commerce. Islam recognises
trade and commerce not only as a lawful profession but also as a moral
duty. Islam has laid down a complete set of rules for trade. The reason
for these rules is to specify what halal earning is. There are many traditions
(Ahaadith) concerning halal provision that can also be found in the books
containing the traditions of the prophet (peace be upon him). Actually,
Islam has encouraged men to earn their own provision and to provide it
to their families. The condition is that the earning has to be according
to the conditions set by the Shari’ah. Any sort of transaction that does
not correspond to the rules of trade will not be allowed. These rules can
be found under the heading of trade in the books of jurisprudence. Interest
is amongst those conditions which all dealings must be free from.
The definition of interest has already been mentioned as well as that
it is prohibited. If we explore the Qur’an we will come across at least
four places where Allah has mentioned interest.
The first one is in Surah Al-baqarah verse no.275
"Those who devour usury will not stand except as stands one whom the
Satan by his touch has driven to madness. That is because they say, "trade
is like usury", but Allah has permitted trade and has forbidden usury",
In the next verse verse 276 in the same place he says,
"Allah will deprive usury of all blessing, and will give increase for
deeds of charity, for he does not love any ungrateful sinner."
Two verses later in verse 278 he says,
"Oh you who believe! Fear Allah and give up what remains of your demand
for usury if you are indeed believers."
In verse 279 he says,
"If you do not, take notice of war from Allah and his Messenger
sallallahu
alaihe wasallm but if you repent you shall have your capital sum. Deal
not unjustly and you shall not be dealt with unjustly."
In the second place in Surah Aal-Imran, verse no.130 Allah says,
"Oh you who believe! Devour not usury doubled and multiplied; but fear
Allah that you may prosper."
In the third place in Surah Al-Nisaa’ Allah states in verse 161,
"That they took usury though they were forbidden and they devoured peoples
wealth wrongfully; we have prepared for those amongst them who reject faith
a grievous chastisement."
In the fourth place, Surah Al-Room, verse no.39 Allah mentions
"That which you give in usury for increase through the property of people
will have no increase with Allah: but that which you give for charity seeking
the countenance of Allah, it is these who will get a recompense multiplied."
Ahaadith
Concerning Interest
These ahaadith have been taken from Mishkat-ul-Masabih under the section
of interest and the English translation has been taken from its English
version written by Al Hajj Moulana Fazl Karim (218-227 vol. II)
Hazrat Jabir radiyallahu anhu has reported that the Messenger
of Allah sallallahu alaihe wasallm cursed the devourer of usury,
its payer, its scribe and its two witnesses. He also said that they were
equal (in sin).
(Muslim)
Hazrat Abu Hurairah radiyallahu anhu reported that the Holy Prophet
sallallahu
alaihe wasallm said: A time will certainly come over the people when
none will remain who will not devour usury. If he does not devour it, its
vapour will overtake him.
(Ahmed, Abu Dawood, Nisai, Ibn Majah.)
Hazrat Abu Hurairah radiyallahu anhu reported that the Messenger
of Allah sallallahu alaihe wasallm said : Usury has got seventy
divisions. The easiest division of them is a man marrying his mother.
(Ibn Majah)
Hazrat Abu Hurairah radiyallahu anhu reported that the Messenger
of Allah sallallahu alaihe wasallm said: I came across some people
in the night in which I was taken to the heavens. Their stomachs were like
houses wherein there were serpents, which could be seen from the front
of their stomachs. I asked: O Gabriel! Who are these people? He replied
these are those who devoured usury.
(Ahmed, Ibn Majah)
Hazrat Ali radiyallahu anhu reported that he heard the Messenger
of Allah sallallahu alaihe wasallm cursing the devourer of usury,
its giver, its scribe and one who refuses to give Zakat and he used to
forbid mourning.
(Nisai)
Hazrat Umar bin Al-Khattab radiyallahu anhu reported: the last of
what was revealed was the verse of usury. The Messenger of Allah sallallahu
alaihe wasallm was taken and he had not explained it to us. So, give
up usury and doubt.
(Ibn Majah, Darimi)
Hazrat Abdullah bin Hanzalah radiyallahu anhu (who was washed by
the angels) reported that the Messenger of Allah sallallahu alaihe wasallm
said: A dirham of usury that a man devours and he knows is greater than
36 fornications.
(Ahmed, Darqutni)
Baihaqi reported from Ibn Abbas radiyallahu anhu in shuabul
iman. He added and said: (as for) one whose flesh has grown out of unlawful
food, the fire is more suitable for him.
After narrating all these verses from the Qur’an and relating all the
Ahaadith it is apparent to us that interest could never be legal and halal.
How could anybody even take the time out to think about a matter in which
Allah has declared war on the user and his Beloved Prophet sallallahu
alaihe wasallm has cursed him? As sensible people we can understand
that what our creator has chosen for us is for our own prosperity only.
Interest
From A Jurisprudical View
We should deeply thank the Sahaabah radiyallahu anhum in their
efforts to spread the religion as they learnt it from the Prophet sallallahu
alaihe wasallm. Then when the religion started to spread vastly Allah
brought about four imams who described the religion in general terms in
order to make the common public understand. They spent their lives trying
to put the whole religion in a collective form through the Qur’an and the
Ahaadith and the concise decisions of the Sahaabah radiyallahu anum.
In the case of interest, all four imams established a general rule mainly
concentrating on this statement made by the Prophet sallallahu alaihe
wasallm.
Hazrat Al-Khudri radiyallahu anhu reported that the Prophet sallallahu
alaihe wasallm said: Gold in exchange for gold, silver in exchange
for silver, wheat in exchange for wheat, barley in exchange for barley,
dates in exchange for dates, salt in exchange for salt is in the same category
and (should be exchanged) hand to hand, so who ever adds or demands increase
he has practised usury. The giver and taker are the same.
Out of the four imams, Imam Abu Hanifah has ruled that if the measurement
system (volumetric or in compounds) is the same and the two items are in
the same category, then they should be sold in the same amount and direct
not in credit otherwise interest will be found.
Imam Shaf’ee says that if the items are valuable and could be considered
food then there is the chance of interest. Imam Malik says that if the
items are valuable and are edible then interest is a subject.
As you may have realised, giving and taking interest is unlawful.
Unfortunately,
the basis of many of the transactions (especially in banking and
insurance),
personal or business involve interest. Thus it is becoming increasingly
difficult for the majority of the Muslims, especially those who are
comercially
orientated to abstain from dealings involving interest. Many of us
purchase items on ‘Buy now, Pay later' schemes thinking that this sort
of scheme is of great benefit to us. Sadly, what we fail to recognize at
the time of purchasing this ‘supposed bargain' is the fact that if we
fail to pay the required amount at the due time, we will be liable to
pay interest.
Now, suppose a couple of months ago, we were purchased an item on
a ‘Pay later' scheme in which there was no question about us keeping
upto date with payments, however due to a change in our financial
situation, we have failed to pay the required amount, and are paying
interest now as a result. We would have joined a group of those
unfortunate people who have been cursed by the Prophet Sallallahu Alayhi
Wassallam.
Our advice to anyone
who is involved in any form of interest is that the individual should minimise
his expenditure in these dealings and if possible abstain completely from
these transactions. In any case, every individual should continue to seek
Allah’s forgiveness. The philosophy shows that a person who takes interest
does not gain anything in reality but through the explanation of the Qur’an
verse,
" Allah decreases interest and increases sadqah"
That in reality the money just goes to waste and the person does not
even realise, and a person who gives money in the path of Allah, in whatever
form it may be, actually gains although in reality it seems as though he
is loosing out.
Every person should take all necessary precautions in their financial
and social dealings. If a person neglects in keeping a watchful eye on
financial dealings, this negligence will slowly spread to other aspects
of religion. This will have a very detrimental effect on religious matters.
The dealings of usury and interest are not only a disadvantage to
us in this world but will also be a source of great discomfort and pain
for us in the hereafter. The Prophet Sallallahu Alayhi Wassallam has
informed us about the punishment that awaits those people who deal with
interest:
“Hazrat Abu Huraira Radhiallaho Anhu has reported the saying of
the Prophet Sallallahu Alayhi Wassallam that during his ascension
(Mi'raaj), he noticed a group of men whose stomachs were bloated to the
size of big rooms and their wanting to move from their positions was
impossible. They would be crushed in a stampede by the friends of
Fir'awn. The Prophet Sallallahu Alayhi Wassallam seeing their condition
asked Hazrat Jibra'eel Alayhis Salaam about their identity. He was
informed that they were the people who indulged in dealings of usury and
interest.”
The summary of the matter is that interest is hazardous and should be
abstained from in all manners. If anybody has a case they wish to solve
then they should contact a Mufti and present their problem as it is.
I conclude by asking you my dear reader, is it really worth destroying
the eternal life of the hereafter, just so that we may have a few more
comforts in a life which can come to an end any moment
“And
(Allah desires) that you should complete the period (of fasting), and
that you should magnify Allah (saying ‘Allahu Akbar’) for having guided
you, and that perchance you may be thankful.“
