Original Question: Riba (usury) is often discussed in our community. But what does riba (usury) mean? And what is the Shariah perspective on it?
In literal terms, the word ‘riba’ means excess, increase, augmentation, expansion, or growth.
As Muslims, it is best to refer to our primary sources, the Quran and Sunnah, as well as the opinions of the ulama to ascertain matters related to permissibility in the Shariah.
The prohibition of usury or interest is clearly mentioned in the Quran by virtue of verse 275, surah al-Baqarah: “…but God has permitted trade and forbidden usury…” Also, in surah Ali ‘Imran, verse 130: “O you who have believed, do not consume usury, doubled and multiplied, but fear Allah that you may be successful”.
In addition to the Quranic verses, we refer to the sayings of Prophet Muhammad (peace be upon him), which also substantiate the prohibition of usury or interest. In Sahih Muslim, it is narrated by Jaabir (RA) that: “The Messenger of Allah (ï·º) cursed the one who accepts riba (the usury) and the one who pays it.” Also, in Jami’ al-Tirmidhi, it is narrated by Ibn Ma’sud (RA) that: “The Messenger of Allah (ï·º) cursed the one who consumed Riba, and the one who charged it, those who witnessed it, and the one who recorded it.”
These manifold prohibitions of riba and it being a cursed act are clear evidence that riba is a major sin in Islam. Therefore, it is our obligation to abstain from riba completely. Not only by refraining from consuming riba directly but also from partaking in any riba-related matters. Such as the recorder, witness, or guarantee for transactions or agreements related to riba.
On top of that, we have to support the efforts of our Shariah scholars and Shariah fraternities in providing alternative halal products in the Islamic finance industry as al-Makhraj (legal exit) and solutions for the community.
